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5 Year Employment Contract for Saudi Arabia

5 Year Employment Contract Template for Saudi Arabia

This document is a comprehensive fixed-term employment contract governed by Saudi Arabian law, specifically designed for a five-year duration. It complies with the Saudi Labor Law (Royal Decree No. M/51) and related regulations, including Wage Protection System requirements and Saudization policies. The contract details all essential employment terms including compensation, benefits, working conditions, and termination provisions, while incorporating mandatory requirements under Saudi labor regulations and Sharia principles. It provides legal protection for both employer and employee while ensuring compliance with local employment standards and social insurance requirements.

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What is a 5 Year Employment Contract?

This 5 Year Employment Contract is designed for use in the Kingdom of Saudi Arabia when establishing long-term employment relationships between companies and their employees. The contract is particularly suitable for organizations seeking to secure key talent for extended periods while ensuring compliance with Saudi Labor Law, Sharia principles, and related regulations. It incorporates all mandatory provisions required by Saudi authorities, including working hours, leave entitlements, end of service benefits, and Wage Protection System compliance. The document is structured to protect both employer and employee interests while maintaining flexibility for specific role requirements and company policies. It's especially relevant for positions requiring significant investment in training, leadership continuity, or long-term project completion.

What sections should be included in a 5 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 five-year duration 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 potential for relocation or travel

7. Working Hours: Standard working hours, days, and overtime provisions as per Saudi Labor Law

8. Remuneration: Base salary, payment schedule, and method of payment complying with WPS regulations

9. Benefits and Allowances: Housing allowance, transportation allowance, and other standard benefits

10. Annual Leave: Annual vacation entitlement and public holidays as per Saudi Labor Law

11. Medical Insurance: Health insurance coverage details as required by law

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

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

14. Confidentiality: Protection of company confidential information and trade secrets

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

16. Dispute Resolution: Process for resolving employment disputes through labor offices and courts

What sections are optional to include in a 5 Year Employment Contract?

1. Probationary Period: Optional 90-day probation period terms, used for new employees without prior service

2. Non-Competition: Post-employment competition restrictions, used for senior positions or roles with access to sensitive information

3. Bonus Scheme: Performance-based bonus structure, used when offering variable compensation

4. International Assignment: Terms for international work assignments, used for expatriate employees or roles requiring international travel

5. Education and Training: Professional development commitments and training bonds, used for specialized roles or sponsored education

6. Company Car: Terms for provision and use of company vehicle, used when offering car benefits

7. Housing Provision: Terms for company-provided accommodation, used when offering housing instead of allowance

8. Intellectual Property: IP rights and assignments, used for technical or creative roles

What schedules should be included in a 5 Year Employment Contract?

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

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components, allowances, and benefits

3. Schedule 3 - Company Policies: Key workplace policies including IT, leave, and conduct policies

4. Schedule 4 - Performance Metrics: KPIs and performance evaluation criteria

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

6. Appendix B - Safety Procedures: Workplace safety protocols and emergency procedures

7. Appendix C - Benefits Summary: Detailed description of all employee benefits and eligibility criteria

8. Appendix D - Training Requirements: Mandatory training programs and professional development requirements

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 and Financial Services

Oil and Gas

Manufacturing

Technology

Healthcare

Construction

Education

Telecommunications

Professional Services

Retail

Hospitality

Transportation and Logistics

Mining

Real Estate

Energy

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Production

Quality Assurance

Customer Service

Administration

Procurement

Business Development

Engineering

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Head

Senior Manager

Technical Specialist

Project Manager

Senior Engineer

Financial Controller

Operations Manager

HR Manager

IT Director

Research Scientist

Sales Director

Legal Counsel

Production Manager

Development Manager

Principal Consultant

Regional Manager

Department Supervisor

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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