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1 Year Contract Employment for Saudi Arabia

1 Year Contract Employment Template for Saudi Arabia

A comprehensive fixed-term employment contract governed by Saudi Arabian law, specifically designed for a one-year duration. This contract complies with the Saudi Labor Law and related regulations, including recent reforms and Saudization requirements. It covers all essential employment terms including compensation, benefits, working hours, leave entitlements, and end of service benefits. The document incorporates mandatory provisions required by Saudi authorities, addresses social insurance requirements, and includes necessary clauses for work permit and residence visa purposes where applicable. It also ensures compliance with the Wage Protection System (WPS) and other current Saudi labor regulations.

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1 Year Contract Employment

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What is a 1 Year Contract Employment?

This 1 Year Contract Employment agreement is designed for use in the Saudi Arabian market where fixed-term employment contracts are common across various industries. The document serves as a legally binding agreement between employers and employees, ensuring compliance with Saudi Labor Law, Ministry of Human Resources and Social Development regulations, and Shariah principles. It's particularly useful for project-based roles, expatriate employment, or positions tied to specific business needs. The contract includes mandatory provisions required by Saudi authorities, such as working hours, leave entitlements, end of service benefits, and compliance with the Wage Protection System. It also addresses requirements for work permits and residence visas where necessary, making it suitable for both Saudi nationals and foreign workers.

What sections should be included in a 1 Year Contract Employment?

1. Parties: Identification of the employer and employee with 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. Term and Renewal: Specification of the one-year term, start date, and any renewal provisions

5. Position and Duties: Employee's job title, role, responsibilities, and reporting structure

6. Place of Work: Primary workplace location and any mobility requirements

7. Working Hours: Standard working hours, days, and overtime arrangements as per Saudi Labor Law

8. Probation Period: Duration and terms of the probationary period (if applicable)

9. Compensation: Base salary, payment frequency, and method of payment through WPS

10. Benefits: Mandatory benefits including social insurance, health insurance, and annual leave

11. Public Holidays and Leave: Entitled holidays, annual leave, sick leave, and other types of leave

12. Confidentiality: Protection of company confidential information and trade secrets

13. Intellectual Property: Ownership of work product and intellectual property created during employment

14. Non-Competition: Post-employment competitive restrictions (subject to Saudi Labor Law limitations)

15. Termination: Grounds and procedures for contract termination by either party

16. End of Service Benefits: Calculation and payment of end of service benefits as per Saudi Labor Law

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

18. Language: Specification of Arabic as the governing language with English translation if provided

What sections are optional to include in a 1 Year Contract Employment?

1. Commission Structure: Used for sales positions or roles with variable compensation components

2. International Travel: Include when role requires international travel, detailing allowances and arrangements

3. Housing Allowance: When employer provides housing or housing allowance

4. Transportation Allowance: When employer provides transportation or related allowance

5. Training Obligations: When specific training requirements or bonds are part of employment

6. Remote Work Provisions: For positions allowing work from home or remote locations

7. Performance Bonus: When role includes performance-based incentives

8. Stock Options/Equity: For senior positions offering company ownership opportunities

9. Relocation Terms: When position requires relocation, detailing assistance and terms

What schedules should be included in a 1 Year Contract Employment?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components, allowances, and benefits

3. Schedule 3 - Company Policies: Key company policies and procedures applicable to the employment

4. Schedule 4 - Code of Conduct: Company's code of conduct and ethical standards

5. Schedule 5 - Benefits Summary: Detailed description of all benefits and eligibility criteria

6. Appendix A - Required Documents: List of documents required for employment and visa purposes

7. Appendix B - Performance Metrics: Specific KPIs and performance evaluation criteria if applicable

Authors

Alex Denne

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

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions








































Clauses









































Relevant Industries

Banking & Financial Services

Information Technology

Construction

Healthcare

Education

Manufacturing

Retail

Oil & Gas

Telecommunications

Professional Services

Hospitality

Real Estate

Mining

Transportation & Logistics

Media & Entertainment

Relevant Teams

Human Resources

Legal

Finance

Information Technology

Operations

Sales

Marketing

Customer Service

Research & Development

Administration

Quality Assurance

Business Development

Project Management Office

Corporate Communications

Procurement

Relevant Roles

Project Manager

Software Developer

Sales Executive

Financial Analyst

HR Coordinator

Operations Manager

Marketing Specialist

Account Manager

Business Development Executive

Research Analyst

Technical Consultant

Administrative Assistant

Quality Assurance Engineer

Product Manager

Customer Service Representative

Department Head

Legal Counsel

Data Analyst

Regional 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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