Unlimited Employment Contract Template for Saudi Arabia

When you need to establish a long-term employment relationship in Saudi Arabia, an Unlimited Employment Contract is the standard legal document that creates an ongoing employment agreement without a predetermined end date. This contract is mandatory under Saudi Labor Law and serves as the foundation for all employment relationships that aren't project-specific or temporary in nature.

When do you need this document?

You need an Unlimited Employment Contract when hiring employees for permanent positions in Saudi Arabia, including full-time staff, managers, and specialists who will work indefinitely for your company. This contract type is required for most standard employment relationships and is particularly important when employing both Saudi nationals and expatriate workers. The document becomes essential during labor inspections, visa applications for foreign employees, and when calculating end-of-service benefits upon termination.

Key legal considerations

Your contract must include mandatory provisions under Saudi Labor Law, including the probationary period (maximum 180 days for most positions), detailed job responsibilities, working hours (maximum 8 hours per day, 48 hours per week), and compensation structure. The agreement should specify leave entitlements including annual leave (21 days minimum after one year), sick leave, and public holidays. Termination clauses must align with Saudi Labor Law requirements, including notice periods and end-of-service benefit calculations. The contract should also address confidentiality, non-compete provisions (if applicable), and intellectual property rights, ensuring they comply with Saudi legal standards.

Legal requirements in Saudi Arabia

Under Saudi Labor Law (Royal Decree No. M/51), your employment contract must be written in Arabic, though you can include an English translation for clarity. The document must comply with Social Insurance Law requirements, including mandatory registration with GOSI (General Organization for Social Insurance) and adherence to Wage Protection System (WPS) regulations for electronic salary payments. You must also consider Saudization (Nitaqat) requirements if your company falls under these regulations. The contract should reflect Islamic principles and Saudi cultural norms, including provisions for prayer time and Islamic holidays. Additionally, ensure the agreement complies with the Basic Law of Governance and includes all mandatory labor law protections for employee rights and employer obligations.