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Minimum Hours Contract for Saudi Arabia

Minimum Hours Contract Template for Saudi Arabia

A comprehensive employment agreement governed by Saudi Arabian law that establishes a guaranteed minimum number of working hours for an employee while maintaining flexibility in work scheduling. The contract ensures compliance with Saudi Labor Law and Ministry of Human Resources and Social Development regulations, including mandatory benefits, social insurance requirements, and Shariah principles. It details the minimum guaranteed hours, compensation structure, work scheduling procedures, and includes provisions for additional hours, benefits, and termination terms in accordance with Saudi employment regulations.

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Minimum Hours Contract

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What is a Minimum Hours Contract?

This Minimum Hours Contract template is designed for use in the Saudi Arabian market where employers need to provide guaranteed minimum hours of work while maintaining operational flexibility. It is particularly suitable for businesses with variable workload patterns but who wish to provide their employees with income security and stable employment. The document ensures compliance with Saudi Labor Law, MHRSD regulations, and Shariah principles, while addressing practical aspects such as work scheduling, compensation, and benefits. It includes all mandatory provisions required by Saudi authorities, including social insurance (GOSI) requirements, and can be customized based on specific sector requirements and employee categories. This contract type is commonly used in retail, hospitality, and service sectors where work patterns may vary but consistent staffing levels need to be maintained.

What sections should be included in a Minimum Hours Contract?

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers

2. Background: Context of the employment relationship and purpose of the minimum hours arrangement

3. Definitions: Key terms used throughout the contract, including 'Minimum Hours', 'Standard Hours', 'Additional Hours', etc.

4. Term of Employment: Duration of the contract, whether fixed-term or indefinite, and any probationary period

5. Minimum Hours Guarantee: Specification of the guaranteed minimum hours per week/month and how these hours will be calculated

6. Work Schedule: Details of how and when work hours will be allocated and notified to the employee

7. Compensation: Base salary, calculation method for minimum hours, and payment for additional hours worked

8. Benefits and Allowances: Mandatory benefits under Saudi law including housing allowance, transportation allowance, and other benefits

9. Leave Entitlements: Annual leave, sick leave, and other types of leave as per Saudi Labor Law

10. Social Insurance: GOSI registration and contribution details

11. Termination: Conditions and procedures for contract termination as per Saudi Labor Law

12. Governing Law: Confirmation of Saudi Law application and Shariah compliance

What sections are optional to include in a Minimum Hours Contract?

1. Additional Hours: Used when the employer wants to specify terms for hours worked beyond the minimum guaranteed hours

2. Location Flexibility: Include when work can be performed at multiple locations or remotely

3. Performance Metrics: Include when minimum hours are tied to specific performance requirements

4. Training Requirements: Used when specific training or certifications are required for the role

5. Non-Compete: Include when restricting employee's ability to work for competitors (subject to Saudi labor law restrictions)

6. Confidentiality: Include when employee will have access to sensitive information

7. Commission Structure: Used for roles that include commission-based compensation in addition to minimum hours

What schedules should be included in a Minimum Hours Contract?

1. Schedule 1 - Job Description: Detailed description of the role, responsibilities, and reporting structure

2. Schedule 2 - Compensation Details: Detailed breakdown of salary components, allowances, and calculation methods

3. Schedule 3 - Work Location(s): List of approved work locations and any specific requirements for each

4. Schedule 4 - Company Policies: Key company policies that form part of the employment terms

5. Appendix A - Minimum Hours Calculation Method: Detailed explanation of how minimum hours are calculated and tracked

6. Appendix B - Benefits Summary: Comprehensive list of benefits and eligibility criteria

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

Retail

Hospitality

Healthcare

Education

Professional Services

Information Technology

Customer Service

Consulting

Food and Beverage

Entertainment

Tourism

Facilities Management

Security Services

Relevant Teams

Human Resources

Operations

Customer Service

Sales

Support Services

Facilities

Administration

Technical Support

Education

Retail Operations

Guest Services

Relevant Roles

Retail Associate

Customer Service Representative

Healthcare Assistant

Teaching Assistant

IT Support Specialist

Sales Representative

Restaurant Server

Security Guard

Maintenance Technician

Administrative Assistant

Call Center Agent

Hotel Staff

Facilities Coordinator

Part-Time Instructor

Support Staff

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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