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Renewable Contract Of Employment for Saudi Arabia

Renewable Contract Of Employment Template for Saudi Arabia

A comprehensive employment agreement governed by Saudi Arabian law that establishes a renewable contractual relationship between an employer and employee. This document complies with the Saudi Labor Law and related regulations, including recent amendments under Ministerial Resolution No. 51848/1442 (2021). It covers essential employment terms such as compensation, benefits, working hours, leave entitlements, and end-of-service benefits, while ensuring compliance with Saudization requirements and social insurance regulations. The contract provides flexibility for renewal while protecting both employer and employee rights under Saudi jurisdiction.

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What is a Renewable Contract Of Employment?

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.

What sections should be included in a Renewable Contract Of Employment?

1. Parties: Identification of the employer and employee with full legal names and relevant details as required by Saudi Labor Law

2. Background: Brief context of the employment relationship and basis for the contract

3. Definitions: Key terms used throughout the contract

4. Term and Renewal: Duration of initial contract and renewal terms as per Saudi Labor Law

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

6. Place of Work: Primary work location and potential for transfer

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

8. Probation Period: Length and terms of the probationary period if applicable

9. Compensation and Benefits: Base salary, allowances, and mandatory benefits

10. Annual Leave: Annual leave entitlement and conditions as per Saudi Labor Law

11. Sick Leave: Sick leave entitlement and notification requirements

12. Confidentiality: Protection of employer's confidential information

13. Termination: Grounds and procedures for contract termination

14. End of Service Benefits: Calculation and payment of end of service benefits

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

What sections are optional to include in a Renewable Contract Of Employment?

1. Non-Competition: Restrictions on post-employment competition, only include if relevant to position and permissible under local law

2. Intellectual Property Rights: IP assignment provisions for roles involving creative or technical work

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

4. Commission Structure: For sales or commission-based roles

5. International Travel: For positions requiring frequent international travel

6. Training Commitments: For positions requiring specific training or certification requirements

7. Housing Allowance Terms: Detailed terms for housing benefits if provided

8. Transportation Allowance: Specific terms for transportation benefits if provided

What schedules should be included in a Renewable Contract Of Employment?

1. Schedule 1 - Detailed Job Description: Comprehensive outline of job responsibilities and requirements

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

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

4. Schedule 4 - Performance Metrics: Key performance indicators and evaluation criteria

5. Appendix A - Required Documents: List of required documents for employment visa and government compliance

6. Appendix B - Benefits Summary: Detailed description of all 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

Banking and Financial Services

Oil and Gas

Construction

Manufacturing

Healthcare

Education

Technology

Retail

Hospitality

Professional Services

Telecommunications

Transportation and Logistics

Real Estate

Public Sector

Engineering Services

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Administration

Customer Service

Project Management

Engineering

Quality Assurance

Business Development

Corporate Communications

Relevant Roles

Chief Executive Officer

General Manager

Department Manager

Senior Engineer

Project Manager

Sales Manager

Financial Analyst

HR Manager

Technical Specialist

Administrative Assistant

Operations Manager

Marketing Executive

Research Analyst

Software Developer

Account Manager

Legal Counsel

Medical Professional

Teacher/Professor

Construction Manager

Business Development Manager

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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