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Probationary Employment Agreement

Probationary Employment Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Probationary Employment Agreement

"I need a Probationary Employment Agreement under Saudi law for a senior software engineer position in our Riyadh office, starting March 1, 2025, with specific provisions for remote work flexibility and intellectual property protection."

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Document background
The Probationary Employment Agreement is a crucial document used when initiating new employment relationships in Saudi Arabia. It serves as the primary contract during the initial assessment period of employment, typically lasting up to 90 days, as prescribed by Saudi Labor Law. This document is essential for organizations seeking to evaluate new hires while maintaining compliance with local employment regulations. The agreement includes comprehensive details about the employment relationship, including role specifications, compensation, working conditions, and performance expectations during the probationary period. It's designed to protect both employer and employee interests while adhering to Saudi labor regulations, including Saudization requirements and Ministry of Human Resources and Social Development guidelines.
Suggested Sections

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Probationary Period: Details of the position and duration of probationary period (not exceeding 90 days as per Saudi Labor Law)

5. Job Description and Duties: Detailed description of the role, responsibilities, and reporting structure

6. Working Hours and Location: Specified working hours, days, and primary work location

7. Compensation and Benefits: Salary, allowances, and any benefits provided during the probationary period

8. Termination During Probation: Rights and procedures for termination during the probationary period

9. Confidentiality and Data Protection: Employee obligations regarding company information and data

10. Company Policies: Reference to and incorporation of relevant company policies

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

Optional Sections

1. Transportation Allowance: Details of transportation benefits, if provided

2. Housing Allowance: Terms of housing benefits, if applicable

3. Medical Insurance: Details of medical coverage during probation, if provided before confirmation

4. Non-Competition: Non-compete restrictions, if required for the position

5. Training Requirements: Specific training obligations during probation, if any

6. Performance Metrics: Specific KPIs or performance standards for evaluation during probation

7. Remote Work Provisions: Terms for remote work if applicable to the role

Suggested Schedules

1. Schedule 1 - Detailed Job Description: Comprehensive list of duties and responsibilities

2. Schedule 2 - Compensation Details: Breakdown of salary components and payment schedule

3. Schedule 3 - Company Policies Acknowledgment: List of applicable policies and confirmation of receipt

4. Schedule 4 - Performance Evaluation Criteria: Specific metrics and standards for probation evaluation

5. Appendix A - Required Documents: List of documents required from employee (qualifications, certificates, etc.)

6. Appendix B - Benefits Summary: Overview of benefits applicable during probation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Banking & Finance

Technology

Healthcare

Manufacturing

Retail

Construction

Professional Services

Education

Telecommunications

Energy & Utilities

Hospitality

Real Estate

Transportation & Logistics

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research & Development

Administration

Customer Service

Business Development

Compliance

Relevant Roles

Executive Director

Department Manager

Software Engineer

Financial Analyst

HR Specialist

Sales Representative

Project Manager

Operations Coordinator

Research Analyst

Marketing Executive

Administrative Assistant

Technical Support Specialist

Account Manager

Business Development Manager

Legal Counsel

Industries
Saudi Labor Law (Royal Decree No. M/51): The primary legislation governing employment relationships in Saudi Arabia, including provisions on probationary periods (Article 53), which states that probation periods cannot exceed 90 days and can be extended once for a similar period
Ministerial Resolution No. 70273 dated 11/04/1440H: Provides detailed requirements for employment contracts, including mandatory provisions and format requirements
Wage Protection System (WPS) Regulations: Regulations governing salary payments and registration requirements for employee wages during all employment periods, including probation
Social Insurance Law: Governs mandatory social insurance registration and contributions, which apply even during probationary periods
Nitaqat (Saudization) Regulations: Requirements for hiring Saudi nationals and maintaining required ratios of Saudi to non-Saudi employees, which must be considered in hiring decisions
Ministry of Human Resources and Social Development (MHRSD) Guidelines on Contract Templates: Official guidelines and templates for employment contracts, including specific provisions for probationary periods
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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