Standard Employment Contract Form

Standard Employment Contract Form Template for Saudi Arabia

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Key Requirements PROMPT example:

"I need a Standard Employment Contract Form for a senior software developer position in Riyadh, Saudi Arabia, with provisions for hybrid working arrangements and specific clauses about intellectual property rights, starting March 2025."

Document background

The Standard Employment Contract Form serves as a foundational document for establishing employment relationships in Saudi Arabia, designed to comply with the Saudi Labor Law (Royal Decree No. M/51) and related ministerial resolutions. This contract template is essential for both Saudi and non-Saudi employees, incorporating mandatory provisions required by law while maintaining flexibility for industry-specific modifications. It should be used when initiating any new employment relationship or formalizing existing arrangements in Saudi Arabia, ensuring proper documentation of terms including compensation, benefits, working hours, and termination conditions. The document reflects current legal requirements, including Wage Protection System compliance, Saudization considerations, and social insurance obligations, making it suitable for various employment scenarios while maintaining legal compliance.

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 reference to any prior agreements or offers

3. Definitions: Key terms used throughout the contract, including defined working days, year, and any specific terminology

4. Position and Duties: Detailed job title, description, responsibilities, and reporting relationships

5. Term of Employment: Duration of contract (fixed-term or unlimited) and probation period details

6. Compensation: Base salary, payment schedule, currency, and method of payment in compliance with WPS

7. Working Hours and Days: Standard working hours, days, overtime policies, and rest periods

8. Leave Entitlements: Annual leave, sick leave, public holidays, and other statutory leave rights

9. Benefits: Mandatory benefits including medical insurance and social insurance requirements

10. End of Service Benefits: Calculation and payment terms for end of service gratuity

11. Termination: Grounds and procedures for contract termination, notice periods, and consequences

12. Confidentiality: Employee obligations regarding company confidential information

13. Governing Law: Reference to Saudi Labor Law and Islamic Shariah principles

14. Dispute Resolution: Process for resolving employment-related disputes

Optional Sections

1. Housing Allowance: Terms of housing benefits if provided - use when employer provides housing or housing allowance

2. Transportation Allowance: Details of transportation benefits - use when specific transportation arrangements are provided

3. Relocation: Relocation terms and assistance - use for expatriate employees or internal transfers

4. Commission Structure: Details of commission or bonus schemes - use for sales or performance-based roles

5. Non-Compete: Post-employment competition restrictions - use for senior or technical roles

6. Training Obligations: Training requirements and bond terms - use when specific training investments are made

7. Remote Work: Terms for remote working arrangements - use when allowing work from home or hybrid arrangements

8. Technology Usage: Rules for company equipment and systems - use when providing significant tech resources

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 benefits

3. Schedule 3 - Company Policies: Reference to key company policies that form part of the employment terms

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

5. Appendix A - Required Documents: List of documents required for employment (qualifications, certificates, etc.)

6. Appendix B - Leave Policy: Detailed procedures for requesting and taking various types of leave

7. Appendix C - Performance Review Process: Details of performance evaluation procedures and timing

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Manufacturing

Technology

Financial Services

Healthcare

Retail

Construction

Education

Professional Services

Hospitality

Energy

Telecommunications

Transportation

Real Estate

Mining

Agriculture

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Customer Service

Administration

Production

Quality Assurance

Business Development

Compliance

Risk Management

Relevant Roles

Chief Executive Officer

General Manager

Department Manager

Senior Engineer

Software Developer

Financial Analyst

HR Manager

Marketing Specialist

Sales Representative

Administrative Assistant

Project Manager

Operations Manager

Research Scientist

Legal Counsel

Account Manager

Technical Support Specialist

Production Supervisor

Quality Control Inspector

Customer Service Representative

Business Development Manager

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