Preliminary Employment Contract Template for Saudi Arabia

A Preliminary Employment Contract in Saudi Arabia serves as the foundation for establishing employment relationships before finalizing comprehensive employment agreements. This document ensures both employers and prospective employees understand the basic terms and conditions while maintaining compliance with Saudi Arabia's comprehensive labor legislation.

When do you need this document?

You need a Preliminary Employment Contract when hiring new employees in Saudi Arabia, whether Saudi nationals or expatriate workers. This document is particularly essential during recruitment processes where you want to secure talent while finalizing administrative requirements. Companies use this contract when navigating Saudization quotas under the Nitaqat program, ensuring proper documentation before completing work visa processes for foreign employees. It's also crucial when establishing employment terms for positions requiring specific qualifications or security clearances that may take time to verify.

Key legal considerations

Your Preliminary Employment Contract must clearly define the probation period, which cannot exceed 90 days for most positions under Saudi Labor Law. The document should specify compensation details that comply with Wage Protection System regulations, ensuring electronic payment capabilities are established. You must include accurate job descriptions that align with visa classifications for expatriate workers and maintain consistency with final employment contracts. The contract should address social insurance obligations, including mandatory coverage under the Social Insurance Law and workplace injury insurance. Additionally, ensure termination clauses comply with end-of-service benefit calculations and notice period requirements established under Royal Decree No. M/51.

Legal requirements in Saudi Arabia

Under Saudi Labor Law (Royal Decree No. M/51), your Preliminary Employment Contract must be written in Arabic or include certified Arabic translations for legal enforceability. The document must specify working hours that comply with Islamic prayer times and Ramadan provisions, with maximum weekly hours not exceeding 48 hours for most sectors. You must ensure Saudization compliance by documenting the employee's nationality and how their hiring affects your company's Nitaqat classification. The contract must reference mandatory social insurance registration with the General Organization for Social Insurance (GOSI) and establish wage payment methods that meet Ministry of Human Resources and Social Development requirements. All terms must align with Islamic Shariah principles, particularly regarding interest-free financial arrangements and appropriate working conditions for both male and female employees.