Written Contract Of Employment for Saudi Arabia

Written Contract Of Employment Template for Saudi Arabia

A comprehensive employment contract compliant with Saudi Arabian Labor Law and Islamic Shariah principles, establishing the terms and conditions of employment between an employer and employee. This document outlines essential elements including job responsibilities, compensation, benefits, working hours, leave entitlements, and termination provisions, while ensuring compliance with local labor regulations, including Saudization requirements and mandatory benefits. The contract incorporates provisions for social insurance (GOSI), workplace safety, and other statutory requirements specific to the Saudi Arabian jurisdiction.

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What is a Written Contract Of Employment?

The Written Contract Of Employment is a mandatory legal document in Saudi Arabia, required for establishing formal employment relationships between employers and employees. It serves as the primary reference point for employment terms and conditions, ensuring compliance with Saudi Labor Law (Royal Decree No. M/51) and related ministerial resolutions. This document is essential for obtaining work permits, establishing legal residency for expatriate workers, and maintaining proper employment records as required by Saudi authorities. The contract must be written in Arabic (with optional additional languages) and should address all mandatory elements prescribed by law, including working hours, compensation, benefits, and termination provisions. It forms the basis for resolving any employment-related disputes and protecting both employer and employee rights under Saudi jurisdiction.

What sections should be included in a Written Contract Of Employment?

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 purpose of the agreement

3. Definitions: Key terms used throughout the contract

4. Position and Duties: Job title, role description, responsibilities, and reporting structure

5. Term of Employment: Contract duration (fixed-term or unlimited) and probationary period details

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

7. Compensation: Base salary, payment schedule, and method of payment in compliance with WPS

8. Benefits and Allowances: Mandatory benefits including housing allowance, transportation allowance, and medical insurance

9. Leave Entitlements: Annual leave, sick leave, hajj leave, and other statutory leave entitlements

10. Social Insurance: GOSI registration and contribution requirements

11. Termination: Grounds for termination, notice periods, and end-of-service benefits

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

What sections are optional to include in a Written Contract Of Employment?

1. Confidentiality: Required for positions with access to sensitive information or trade secrets

2. Non-Competition: Applicable for senior positions or roles with access to competitive information

3. Intellectual Property: Required for creative or technical positions involving development of IP

4. Commission Structure: For sales positions or roles with variable compensation

5. International Assignment Terms: For expatriate employees requiring specific visa and relocation terms

6. Training Commitments: When specific training is provided with associated commitments

7. Flexible Working Arrangements: For positions allowing remote work or flexible hours

8. Performance Bonus Structure: For positions eligible for performance-based bonuses

What schedules should be included in a Written Contract Of Employment?

1. Schedule 1 - Job Description: Detailed description of role responsibilities and requirements

2. Schedule 2 - Compensation Details: Breakdown of salary components and calculation methods

3. Schedule 3 - Company Policies: Key workplace policies and procedures applicable to the employee

4. Schedule 4 - Benefits Summary: Detailed description of all benefits and eligibility criteria

5. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

6. Appendix B - Health and Safety Policy: Workplace safety guidelines and procedures

7. Appendix C - IT and Communications Policy: Rules regarding use of company IT systems and communication tools

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

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Clauses
Relevant Industries

Banking & Financial Services

Manufacturing

Technology

Healthcare

Education

Retail

Construction

Oil & Gas

Telecommunications

Professional Services

Hospitality

Transportation & Logistics

Real Estate

Media & Entertainment

Government & Public Sector

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research & Development

Customer Service

Administration

Production

Quality Assurance

Business Development

Corporate Communications

Supply Chain

Relevant Roles

Chief Executive Officer

General Manager

Department Manager

Sales Representative

Administrative Assistant

Software Engineer

Human Resources Officer

Financial Analyst

Marketing Coordinator

Operations Manager

Project Manager

Technical Support Specialist

Account Manager

Research Analyst

Customer Service Representative

Production Supervisor

Legal Counsel

Quality Control Inspector

Business Development Manager

Executive Assistant

Industries
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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