This 1 Year Employment Contract template is designed for use in the Kingdom of Saudi Arabia when establishing fixed-term employment relationships. It is particularly suitable for organizations hiring new employees or converting existing temporary arrangements into formal fixed-term contracts. The document incorporates all mandatory requirements under Saudi Labor Law, including provisions for working hours, leave entitlements, and social insurance obligations. It is structured to accommodate various position levels and industry sectors while maintaining compliance with local regulations, including Wage Protection System requirements and Saudization policies. The contract can be customized for different roles while retaining its core legal compliance elements, making it a valuable tool for HR departments and legal teams in managing employment relationships within Saudi Arabia.
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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 agreement purpose
3. Definitions: Key terms used throughout the contract
4. Position and Duties: Job title, role description, and primary responsibilities
5. Term of Employment: Specifies the one-year duration and any probation period
6. Compensation: Base salary, payment schedule, and method of payment in compliance with WPS
7. Working Hours: Standard working hours, days, and overtime provisions
8. Leave Entitlements: Annual leave, sick leave, and public holidays as per Saudi Labor Law
9. Social Insurance and Benefits: GOSI registration and contributions, health insurance, and other benefits
10. Confidentiality: Protection of company information and trade secrets
11. Termination: Grounds and procedures for contract termination as per Saudi Labor Law
12. Governing Law: Confirmation of Saudi Law application and jurisdiction
13. Language: Specification of Arabic as the official version with English translation
1. Relocation Provisions: Include when employee is being relocated from another country or city
2. Housing Allowance: Include when providing separate housing benefits
3. Transportation Allowance: Include when offering specific transportation benefits
4. Commission Structure: Include for sales positions or roles with variable compensation
5. Non-Compete Clause: Include for senior positions or roles with access to sensitive information
6. Training Commitments: Include when specific training is required with associated commitments
7. Remote Work Provisions: Include if role involves any remote working arrangements
1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and reporting lines
2. Schedule 2 - Compensation Details: Breakdown of salary components and benefits
3. Schedule 3 - Company Policies: Reference to applicable company policies and procedures
4. Schedule 4 - Code of Conduct: Expected behavioral standards and professional conduct
5. Appendix A - Required Documents: List of documents required for employment (qualifications, certificates, etc.)
6. Appendix B - Health Insurance Details: Summary of health insurance coverage and benefits
Relevant legal definitions
Clauses
Relevant Industries
Technology
Manufacturing
Construction
Healthcare
Financial Services
Retail
Education
Professional Services
Hospitality
Energy
Telecommunications
Real Estate
Transportation
Mining
Agriculture
Relevant Teams
Human Resources
Legal
Finance
Operations
Information Technology
Sales
Marketing
Research and Development
Customer Service
Administration
Quality Assurance
Production
Supply Chain
Business Development
Compliance
Relevant Roles
Chief Executive Officer
Managing Director
Department Manager
Project Manager
Software Engineer
Sales Representative
Administrative Assistant
Financial Analyst
HR Specialist
Operations Manager
Marketing Coordinator
Research Analyst
Customer Service Representative
Technical Support Specialist
Business Development Manager
Account Executive
Quality Assurance Engineer
Production Supervisor
Legal Counsel
Supply Chain Coordinator
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