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3 Year Employment Contract for Saudi Arabia

3 Year Employment Contract Template for Saudi Arabia

This employment contract template is designed for use in Saudi Arabia, complying with the Kingdom's Labor Law and related regulations. It establishes a fixed three-year employment relationship between an employer and employee, detailing all mandatory provisions required under Saudi law, including working conditions, compensation, benefits, and termination procedures. The contract incorporates essential elements such as Saudization requirements, GOSI contributions, and end of service benefits calculations, while maintaining flexibility to accommodate various industry-specific requirements and job roles. It ensures compliance with recent labor reforms in Saudi Arabia while protecting both employer and employee interests.

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What is a 3 Year Employment Contract?

This document serves as a comprehensive 3 Year Employment Contract template designed specifically for use in the Kingdom of Saudi Arabia. It is intended for establishing fixed-term employment relationships that comply with Saudi Labor Law and its implementing regulations. The contract is suitable for both Saudi nationals and expatriate workers, incorporating all mandatory provisions required by local law, including working hours, leave entitlements, end of service benefits, and social insurance requirements. It can be customized for various industry sectors and job levels while maintaining compliance with Saudi labor regulations, Saudization requirements, and recent labor reforms. The template includes provisions for salary, benefits, performance expectations, and termination conditions, making it suitable for establishing clear and legally compliant employment relationships in Saudi Arabia.

What sections should be included in a 3 Year Employment Contract?

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 purpose of the agreement

3. Definitions: Key terms used throughout the contract

4. Appointment and Term: Position title, employment classification, and the 3-year term specification

5. Duties and Responsibilities: Detailed description of the employee's role, reporting lines, and key responsibilities

6. Place of Work: Primary workplace location and any mobility requirements

7. Working Hours and Days: Standard working hours, rest periods, and weekly rest days as per Saudi Labor Law

8. Compensation and Benefits: Base salary, allowances, and mandatory benefits under Saudi law

9. Annual Leave and Public Holidays: Leave entitlements and public holiday provisions

10. Medical Insurance: Healthcare coverage details as required by Saudi law

11. Sick Leave: Sick leave entitlements and notification procedures

12. End of Service Benefits: Calculation and payment of end of service gratuity

13. Termination: Grounds and procedures for contract termination

14. Confidentiality: Protection of employer's confidential information

15. Governing Law: Confirmation of Saudi Labor Law application

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

What sections are optional to include in a 3 Year Employment Contract?

1. Non-Compete: Restrictions on post-employment activities, recommended for senior positions or roles with access to sensitive information

2. Intellectual Property Rights: IP ownership provisions, necessary for creative or technical roles

3. Performance Bonus: Variable compensation terms, suitable for sales or management positions

4. Remote Work: Terms for remote working arrangements, if applicable

5. International Travel: Travel requirements and related compensation, for roles requiring international travel

6. Training Obligations: Mandatory training requirements and associated commitments

7. Housing Allowance: Specific terms for housing benefits, common for expatriate employees

8. Transportation Allowance: Details of transportation benefits, if provided

What schedules should be included in a 3 Year Employment Contract?

1. Schedule 1 - Job Description: Detailed outline of role responsibilities, qualifications, and performance expectations

2. Schedule 2 - Compensation Structure: Breakdown of salary components, allowances, and payment schedule

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

4. Schedule 4 - Benefits Summary: Detailed description of all benefits and eligibility criteria

5. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

6. Appendix B - IT and Communications Policy: Rules regarding use of company IT systems and communication tools

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

Construction

Healthcare

Education

Retail

Telecommunications

Professional Services

Logistics

Hospitality

Real Estate

Mining

Aviation

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research & Development

Production

Quality Assurance

Administration

Supply Chain

Customer Service

Business Development

Project Management Office

Relevant Roles

General Manager

Department Head

Senior Manager

Project Manager

Technical Specialist

Sales Manager

Financial Analyst

HR Manager

Operations Manager

Research Scientist

Software Engineer

Account Manager

Marketing Director

Legal Counsel

Production Supervisor

Quality Control Manager

Business Development Executive

Administrative Officer

IT Manager

Supply Chain 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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