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Individual Work Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Individual Work Contract

"I need an Individual Work Contract for a Senior Software Engineer position in Saudi Arabia, including provisions for remote work, intellectual property protection, and a competitive benefits package including housing allowance and annual performance bonus, with the employment starting March 1, 2025."

Document background
The Individual Work Contract serves as the primary legal document establishing employment relationships in Saudi Arabia. It is required for all employees working in the Kingdom, whether Saudi nationals or expatriates, and must comply with the Saudi Labor Law (Royal Decree No. M/51) and related ministerial resolutions. The contract is essential for obtaining work permits, residency visas for foreign workers, and maintaining compliance with Saudization requirements. It should be used whenever a new employee is hired or when an existing employment relationship needs to be formally documented. The contract typically includes comprehensive details about employment terms, benefits, and obligations of both parties, while ensuring alignment with Islamic Sharia principles that underpin Saudi law.
Suggested Sections

1. Parties: Identification of employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and agreement purpose

3. Definitions: Key terms used throughout the contract

4. Job Description and Duties: Detailed description of position, responsibilities, and reporting structure

5. Term of Employment: Contract duration (fixed-term or unlimited) and effective date

6. Probation Period: Duration and terms of the probationary period as per Saudi Labor Law

7. Compensation and Benefits: Base salary, allowances, and other benefits including housing and transportation

8. Working Hours and Days: Regular working hours, days, and overtime provisions

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

10. Social Insurance and Medical Care: GOSI registration and medical insurance provisions

11. Confidentiality and Non-Disclosure: Protection of employer's confidential information

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

13. Termination: Grounds and procedures for contract termination

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

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

Optional Sections

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

2. Intellectual Property Rights: IP ownership provisions, relevant for creative or technical positions

3. Remote Work Provisions: Terms for remote working arrangements if applicable

4. Commission Structure: Details of commission calculations for sales or similar roles

5. Training Commitments: Terms for mandatory training and related commitments

6. International Assignment Terms: Additional terms for expatriate employees

7. Performance Bonus Structure: Details of performance-based incentives if applicable

8. Vehicle Allowance Terms: Specific terms for employees provided with company vehicles

Suggested Schedules

1. Schedule 1 - Detailed Job Description: Comprehensive list of duties, responsibilities, and performance expectations

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

3. Schedule 3 - Company Policies: Reference to applicable company policies and procedures

4. Schedule 4 - Benefits Package: 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 - Safety Procedures: Workplace safety requirements and procedures

7. Appendix C - IT Usage Policy: Rules and guidelines for using company IT resources

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

Banking and Financial Services

Manufacturing

Healthcare

Information Technology

Construction

Retail

Oil and Gas

Education

Telecommunications

Professional Services

Hospitality

Real Estate

Transportation and Logistics

Media and Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Administration

Compliance

Recruitment

Compensation and Benefits

Employee Relations

Payroll

Relevant Roles

Chief Executive Officer

General Manager

Department Manager

Software Engineer

Sales Representative

Administrative Assistant

Human Resources Officer

Financial Analyst

Project Manager

Marketing Specialist

Operations Manager

Technical Support Engineer

Research Analyst

Business Development Manager

Account Executive

Legal Counsel

Production Supervisor

Quality Control Inspector

Customer Service Representative

Logistics Coordinator

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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