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Employment Service Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Employment Service Contract

"I need an Employment Service Contract for a senior software developer position in Riyadh, including remote work provisions and intellectual property clauses, with employment starting March 1, 2025 and offering a competitive benefits package including housing allowance."

Document background
The Employment Service Contract serves as the foundational document for establishing formal employment relationships in Saudi Arabia. This contract template is designed for use when hiring both Saudi nationals and expatriate workers, ensuring compliance with the Saudi Labor Law, ministerial resolutions, and Shariah principles. It encompasses essential elements such as compensation structures, working hours, leave entitlements, and end of service benefits, while incorporating necessary provisions for work visa requirements where applicable. The document is particularly crucial given Saudi Arabia's strict labor regulations and the need for proper documentation for various government interfaces, including the Ministry of Human Resources and Social Development and GOSI registration.
Suggested Sections

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, including defined working hours, workplace, and other relevant terminology

4. Appointment and Duration: Position title, employment status (definite/indefinite term), and commencement date

5. Duties and Responsibilities: Detailed description of the employee's role, responsibilities, and reporting structure

6. Compensation and Benefits: Base salary, allowances, and statutory benefits as per Saudi Labor Law

7. Working Hours and Leave: Standard working hours, overtime provisions, and all types of leave entitlements

8. Probationary Period: Duration and terms of the probationary period as per Saudi Labor Law

9. Confidentiality and Data Protection: Obligations regarding company information and compliance with data protection laws

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

11. Termination: Grounds and procedures for contract termination, notice periods, and consequences

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

Optional Sections

1. Non-Compete Clause: Restrictions on post-employment competition, used for senior positions or roles with access to sensitive information

2. Intellectual Property Rights: IP ownership provisions, typically included for creative or technical roles

3. Remote Work Provisions: Specific terms for remote working arrangements, if applicable

4. Commission Structure: Detailed commission calculations and terms for sales or commission-based roles

5. International Travel: Terms related to international travel requirements and allowances

6. Training Obligations: Specific training requirements and associated bonds or commitments

7. Housing and Transportation: Details of housing and transportation benefits, if provided

8. Performance Bonus Structure: Details of performance-based incentives and bonus calculations

Suggested Schedules

1. Schedule 1 - Job Description: Detailed breakdown of job responsibilities, qualifications, and performance expectations

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits

3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms

4. Schedule 4 - Code of Conduct: Expected behavioral standards and professional conduct requirements

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 processing

7. Appendix B - Authorization Forms: Standard forms for various authorizations (bank transfers, data processing, etc.)

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

Relevant legal definitions
































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Relevant Industries

Banking and Financial Services

Technology

Healthcare

Manufacturing

Retail

Construction

Education

Professional Services

Telecommunications

Energy and Utilities

Hospitality

Transportation and Logistics

Real Estate

Media and Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Administration

Compliance

Recruitment

Personnel Management

Employee Relations

Compensation and Benefits

Training and Development

Relevant Roles

Chief Executive Officer

General Manager

Department Manager

Senior Executive

Technical Specialist

Sales Representative

Administrative Assistant

Project Manager

Software Developer

Financial Analyst

Human Resources Officer

Operations Manager

Marketing Executive

Research Analyst

Customer Service Representative

Legal Counsel

Account Manager

Business Development Manager

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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