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.
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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
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
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
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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