Workers Agreement Template for Saudi Arabia

The Workers Agreement is a fundamental legal document used in Saudi Arabia to establish and regulate employment relationships in accordance with local labor laws. This agreement is essential for both Saudi nationals and expatriate workers, requiring careful alignment with Saudi Labor Law, Saudization policies, and related regulations. It serves as the primary reference document for employment terms, including compensation, benefits, working hours, and termination conditions. The agreement must comply with mandatory requirements such as the Wage Protection System (WPS) and GOSI regulations, while also addressing specific sector requirements and company policies. This document is crucial for maintaining legal compliance and protecting both employer and employee rights in the Saudi Arabian jurisdiction.

1. Parties: Identification of the employer and employee, including 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. Position and Duties: Job title, role description, and primary responsibilities

5. Term of Employment: Duration of employment (fixed-term or unlimited) and probation period details

6. Working Hours and Location: Standard working hours, overtime provisions, and primary work location

7. Remuneration: Base salary, allowances, and payment schedule in compliance with WPS

8. Leave Entitlements: Annual leave, sick leave, and other permitted absences as per Saudi Labor Law

9. Benefits: Health insurance, GOSI coverage, and other employment benefits

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

11. Non-Competition: Post-employment restrictions on competing activities

12. Termination: Grounds and procedures for contract termination

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

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