Probation Employment Contract Template for Saudi Arabia

The Probation Employment Contract is a crucial document used when initiating new employment relationships in Saudi Arabia, whether for Saudi nationals or expatriate workers. It provides a structured framework for the initial employment period, allowing both parties to assess suitability for long-term employment. The document must strictly comply with Saudi Labor Law requirements, particularly Article 53 regarding probation periods, and includes essential terms such as compensation, working hours, performance expectations, and termination conditions. This contract type is fundamental in protecting both employer and employee rights during the probationary period, which cannot exceed 90 days under Saudi law. It serves as a precursor to permanent employment while ensuring all terms align with local regulations, including Saudization requirements, GOSI registration, and mandatory benefits.

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers

2. Background: Brief context of the employment relationship and reason for the probationary contract

3. Definitions: Key terms used throughout the contract, including 'Probation Period', 'Effective Date', and other relevant terminology

4. Position and Duties: Detailed description of the employee's role, responsibilities, and reporting relationships

5. Duration of Probation: Specific length of the probation period (not exceeding 90 days as per Saudi Labor Law) and start date

6. Employment Terms: Basic terms including work location, hours, and attendance requirements

7. Compensation and Benefits: Salary, allowances, and any benefits applicable during the probation period

8. Performance Evaluation: Criteria and process for evaluating the employee's performance during probation

9. Termination Provisions: Conditions and process for termination during the probation period

10. Confidentiality and Data Protection: Employee's obligations regarding company information and data protection

11. Governing Law: Confirmation of Saudi Labor Law application and jurisdiction

12. Execution: Signature blocks and execution requirements