Document background
The Renewable Contract of Employment is a fundamental document used in Saudi Arabia to establish and maintain formal employment relationships in compliance with local labor laws. This contract type is particularly important in the Saudi market as it provides both stability and flexibility in employment relationships while ensuring compliance with strict local labor regulations. It is commonly used for both Saudi nationals and expatriate workers, incorporating mandatory provisions required by Saudi Labor Law, including working hours, leave entitlements, end-of-service benefits, and probation periods. The document must align with recent labor reforms and Saudization policies while accommodating sector-specific requirements and protecting both employer and employee interests. This contract type is essential for companies operating in Saudi Arabia and must be drafted in Arabic to be legally enforceable, with English translations typically provided for international employees.
