Private Hire Contract Template for Saudi Arabia

The Private Hire Contract serves as a fundamental legal document for establishing employment relationships in Saudi Arabia's private sector. This document is essential when hiring employees, whether Saudi nationals or expatriates, and must comply with the Saudi Labor Law, Saudization requirements, and relevant ministerial decisions. The contract should be used at the commencement of any new employment relationship or when converting existing employment arrangements into formal agreements. It includes crucial provisions regarding employment terms, compensation, benefits, working hours, leave entitlements, and termination procedures, all aligned with Saudi legal requirements. The document must be drafted in Arabic (with optional English translation) and registered with the Ministry of Human Resources and Social Development through their electronic systems.

1. Parties: Identification of the employer and employee with complete details as required under Saudi Labor Law

2. Background: Context of the employment relationship and brief description of the employer's business

3. Definitions: Key terms used throughout the agreement defined for clarity

4. Appointment and Term: Position title, employment classification, start date, and contract duration (fixed-term or unlimited)

5. Duties and Responsibilities: Detailed description of the employee's role, reporting lines, and key responsibilities

6. Place of Work: Primary workplace location and potential for travel or relocation

7. Working Hours: Standard working hours, breaks, and overtime arrangements in compliance with Saudi Labor Law

8. Remuneration: Base salary, payment schedule, and method of payment through WPS

9. Benefits and Allowances: Housing, transportation, and other standard benefits as per Saudi practice

10. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements

11. Social Insurance: GOSI registration and contribution requirements

12. Confidentiality: Protection of employer's confidential information and trade secrets

13. Termination: Grounds and procedures for contract termination as per Saudi Labor Law

14. End of Service Benefits: Calculation and payment of end of service gratuity

15. Governing Law: Confirmation of Saudi Law application and dispute resolution procedures