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Fixed Term Employment Contract Template for Saudi Arabia

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Fixed Term Employment Contract

"I need a Fixed Term Employment Contract for a senior software developer position in Saudi Arabia, starting March 2025 for an 18-month period, including provisions for remote work and intellectual property protection for a technology company."

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What is a Fixed Term Employment Contract?

The Fixed Term Employment Contract is essential for organizations operating in Saudi Arabia that require temporary or project-based employment arrangements. This document is specifically designed to comply with Saudi Labor Law requirements while providing clarity on the temporary nature of employment. It's commonly used for project-specific roles, seasonal work, or when organizations need flexibility in workforce planning. The contract must be drafted in Arabic (with optional English translation) and includes mandatory provisions required by Saudi authorities regarding working hours, leave entitlements, and end of service benefits. It's particularly relevant for businesses participating in specific projects, handling seasonal increases in workforce, or engaging specialized expertise for a defined period. The document ensures compliance with local regulations while protecting both employer and employee interests throughout the fixed employment term.

What sections should be included in a Fixed Term Employment Contract?

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 confirmation of the fixed-term nature of the contract

3. Definitions: Key terms used throughout the agreement

4. Term and Duration: Specific start and end dates of the employment contract, including any probation period

5. Position and Duties: Job title, role description, responsibilities, and reporting relationships

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

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

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

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

10. Benefits: Health insurance, social insurance (GOSI), and other contractual benefits

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

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

13. Governing Law: Confirmation of Saudi Law application and dispute resolution mechanism

14. Language: Specification of Arabic as the official version with optional English translation

What sections are optional to include in a Fixed Term Employment Contract?

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

2. Intellectual Property: IP rights assignment and protection, relevant for technical or creative roles

3. Performance Targets: Specific KPIs and bonus structures, typically for sales or management positions

4. International Travel: Travel requirements and related compensation, for roles requiring international mobility

5. Training Commitments: Required training programs and associated bonds, common for development positions

6. Remote Working: Terms for remote work arrangements, if applicable

7. Commission Structure: Detailed commission calculations and terms, for sales positions

8. Housing Allowance Terms: Specific terms related to housing benefits, for expatriate employees

What schedules should be included in a Fixed Term Employment Contract?

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

2. Schedule 2 - Compensation Structure: 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 - Performance Metrics: Detailed KPIs and performance evaluation criteria

5. Schedule 5 - Benefits Details: Comprehensive description of all benefits and their terms

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

7. Appendix B - Code of Conduct: Company's code of conduct and ethical guidelines

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

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Relevant Industries

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