Probationary Employment Agreement Template for Saudi Arabia

A Probationary Employment Agreement is your essential legal document when hiring new employees in Saudi Arabia. This contract establishes the terms and conditions for the initial assessment period, protecting both you as an employer and your new employee during the crucial first months of employment.

When do you need this document?

You need a Probationary Employment Agreement whenever you hire a new employee in Saudi Arabia. This applies whether you're bringing on fresh graduates, experienced professionals, or employees transferring from other companies. The agreement is particularly important when you want to assess an employee's performance, cultural fit, and technical skills before committing to permanent employment. It's also required when hiring foreign workers who need time to adapt to Saudi workplace culture and regulations, or when filling specialized positions that require specific skill validation.

Key legal considerations

Your probationary period cannot exceed 90 days under Saudi Labor Law, though you can extend it once for an additional 90 days with employee consent. The agreement must clearly specify job duties, salary, working hours, and performance expectations. You must include termination clauses that comply with Saudi regulations, noting that during probation, either party can terminate with minimal notice. The contract should address social insurance registration, Wage Protection System enrollment, and compliance with Nitaqat Saudization requirements. Include confidentiality clauses, intellectual property rights, and any specific industry regulations that apply to your business.

Legal requirements in Saudi Arabia

Under Saudi Labor Law (Royal Decree No. M/51), your agreement must be written in Arabic or include an Arabic translation. You must register the employee with the General Organization for Social Insurance (GOSI) from day one, even during probation. Salary payments must comply with Wage Protection System regulations, requiring electronic salary transfers through approved banks. The contract must specify working hours (maximum 8 hours daily, 48 hours weekly) and include provisions for overtime compensation. You must ensure compliance with Nitaqat requirements if applicable to your business sector. The agreement should reference Ministerial Resolution No. 70273 for contract formatting and include mandatory clauses such as vacation entitlement, sick leave, and termination procedures that align with Saudi employment standards.