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Yearly Contract Employment for Saudi Arabia

Yearly Contract Employment Template for Saudi Arabia

This document is a standardized yearly employment contract compliant with Saudi Arabian Labor Law (Royal Decree No. M/51) and associated regulations. It establishes a fixed one-year term employment relationship between an employer and employee, outlining all essential terms and conditions of employment including compensation, benefits, duties, working hours, and termination provisions. The contract incorporates mandatory requirements under Saudi law, including provisions for end-of-service benefits, social insurance (GOSI), and compliance with Wage Protection System (WPS) regulations, while adhering to Islamic Shariah principles that form the foundation of Saudi legal framework.

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What is a Yearly Contract Employment?

This Yearly Contract Employment agreement serves as a comprehensive employment contract for fixed-term (one-year) engagements in Saudi Arabia. It is designed for use when establishing new employment relationships or renewing existing ones, ensuring compliance with Saudi Labor Law, ministerial resolutions, and Shariah principles. The document incorporates mandatory legal requirements including working hours, leave entitlements, end-of-service benefits, and social insurance provisions. It's particularly relevant for both Saudi nationals and expatriate employees, including necessary provisions for work permits and residence visas where applicable. The contract structure accommodates various position levels and includes customizable elements for specific role requirements while maintaining compliance with local labor regulations and cultural considerations.

What sections should be included in a Yearly Contract Employment?

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 agreement purpose

3. Definitions: Key terms used throughout the contract

4. Appointment and Term: Job title, position, and duration of employment (specified as one year)

5. Duties and Responsibilities: Detailed description of the employee's role and responsibilities

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

7. Working Hours: Standard working hours, breaks, and overtime provisions

8. Remuneration: Base salary, allowances, and payment schedule in compliance with WPS

9. Leave Entitlements: Annual leave, sick leave, and other statutory leave provisions

10. Benefits: Medical insurance, social insurance (GOSI), and other benefits

11. Probation Period: Duration and terms of the probationary period

12. Confidentiality: Protection of company information and trade secrets

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

14. Termination: Grounds and procedures for contract termination

15. Governing Law: Specification of Saudi Law and Shariah principles as governing law

What sections are optional to include in a Yearly Contract Employment?

1. Non-Competition: Restrictions on working for competitors, used for senior positions or roles with access to sensitive information

2. Intellectual Property: IP rights assignment, necessary for creative or technical roles

3. Commission Structure: Details of sales commissions or performance bonuses, included for sales roles

4. Training Obligations: Required training and potential training bond terms, used when specific qualifications are needed

5. Remote Working: Terms for working from home or remote locations, included if applicable

6. International Travel: Terms for international travel and related allowances, for roles requiring travel

7. Housing Allowance: Terms of housing provision or allowance, for expatriate employees or specific roles

8. Transportation Allowance: Transportation benefits or allowances, optional based on company policy

What schedules should be included in a Yearly Contract Employment?

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

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

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

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

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

6. Appendix B - Performance Metrics: KPIs and performance evaluation criteria

7. Appendix C - Benefits Summary: Detailed description of all applicable 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

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions








































Clauses



































Relevant Industries

Banking & Financial Services

Information Technology

Manufacturing

Oil & Gas

Healthcare

Education

Retail

Construction

Professional Services

Telecommunications

Hospitality

Transportation & Logistics

Real Estate

Energy

Media & Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Customer Service

Research & Development

Administration

Production

Quality Assurance

Supply Chain

Business Development

Corporate Communications

Relevant Roles

Chief Executive Officer

General Manager

Department Manager

Project Manager

Software Engineer

Financial Analyst

Human Resources Officer

Sales Representative

Marketing Specialist

Operations Manager

Administrative Assistant

Technical Support Specialist

Research Analyst

Account Manager

Business Development Executive

Quality Assurance Specialist

Customer Service Representative

Production Supervisor

Legal Counsel

Supply Chain Coordinator

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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