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Non Fixed Term Employment Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Non Fixed Term Employment Contract

"I need a Non Fixed Term Employment Contract for a senior software developer position in our Riyadh office, starting March 1, 2025, with specific clauses for intellectual property protection and a 6-month non-compete provision."

Document background
The Non Fixed Term Employment Contract serves as the primary employment agreement for permanent positions in Saudi Arabia, establishing an ongoing employment relationship without a predetermined end date. This document is essential for companies operating in Saudi Arabia who wish to hire employees on a permanent basis, ensuring compliance with the Saudi Labor Law and related regulations. It includes mandatory provisions regarding probation periods, working hours, leave entitlements, and end of service benefits, while also addressing specific requirements for both Saudi and non-Saudi employees. The contract must be drafted in Arabic (with optional English translation) and registered with the Ministry of Human Resources and Social Development. It provides the foundation for long-term employment relationships while protecting both employer and employee rights under Saudi law.
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

4. Appointment: Position title, duties, and reporting relationships

5. Commencement Date: Start date of employment and conditions precedent if any

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

7. Duties and Obligations: Detailed responsibilities and performance expectations

8. Place of Work: Primary workplace location and potential for relocation

9. Working Hours: Standard working hours, overtime provisions, and Ramadan hours

10. Remuneration: Base salary, allowances, and payment terms

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

12. Medical Insurance: Health insurance coverage as per Saudi law

13. End of Service Benefits: Calculation and payment of end of service gratuity

14. Termination: Notice periods and grounds for termination

15. Confidentiality: Protection of company information and trade secrets

16. Governing Law: Confirmation of Saudi Law application and jurisdiction

Optional Sections

1. Bonus Scheme: Details of any performance-based bonuses or incentives, used for management or sales positions

2. Housing Allowance: Specific terms for housing benefits, used when providing accommodation or allowance

3. Transportation Allowance: Terms of transportation benefits, used when providing vehicle or allowance

4. Non-Compete: Post-employment restrictions, used for senior positions or technical roles

5. Intellectual Property: IP rights and assignments, used for creative or technical positions

6. International Travel: Travel requirements and allowances, used for positions requiring travel

7. Training Obligations: Professional development requirements and cost recovery, used for specialized roles

8. Commission Structure: Commission calculation and payment terms, used for sales positions

Suggested Schedules

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

2. Schedule 2 - Compensation Structure: Breakdown of salary components and benefits

3. Schedule 3 - Company Policies: Key workplace policies and procedures

4. Schedule 4 - Code of Conduct: Expected behavioral standards and ethical guidelines

5. Appendix A - Leave Policy: Detailed leave application and approval procedures

6. Appendix B - Medical Insurance Details: Summary of medical coverage and benefits

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 & Financial Services

Information Technology

Manufacturing

Healthcare

Education

Retail

Construction

Oil & Gas

Telecommunications

Professional Services

Hospitality

Transportation & Logistics

Real Estate

Media & Entertainment

Relevant Teams

Human Resources

Legal

Finance

Information Technology

Sales

Marketing

Operations

Administration

Customer Service

Research & Development

Business Development

Project Management

Relevant Roles

Chief Executive Officer

General Manager

Department Manager

Software Engineer

Financial Analyst

Human Resources Manager

Sales Representative

Marketing Specialist

Operations Manager

Administrative Assistant

Project Manager

Technical Support Specialist

Research Analyst

Business Development Manager

Account Manager

Customer Service Representative

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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