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Agreement Contract Between Employer And Employees for Saudi Arabia

Agreement Contract Between Employer And Employees Template for Saudi Arabia

This employment agreement is a comprehensive legal document governed by Saudi Arabian Labor Law (Royal Decree No. M/51) that establishes the formal employment relationship between an employer and employee in Saudi Arabia. The agreement outlines essential terms and conditions of employment including job responsibilities, compensation, benefits, working hours, leave entitlements, and termination procedures, while ensuring compliance with local labor regulations and Sharia principles. It incorporates mandatory provisions required by Saudi labor law while allowing for customization based on specific employment circumstances and industry requirements.

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What is a Agreement Contract Between Employer And Employees?

The Agreement Contract Between Employer And Employees serves as the foundational document governing employment relationships in Saudi Arabia. This document is essential for any formal employment arrangement and must be executed in accordance with Saudi Labor Law (Royal Decree No. M/51) and its implementing regulations. It is typically used when hiring new employees, whether Saudi nationals or expatriates, and can be adapted for various employment levels from entry-level positions to executive roles. The agreement encompasses mandatory provisions required by Saudi law, including working hours, leave entitlements, end of service benefits, and other fundamental rights and obligations, while also allowing for additional terms based on specific employment requirements. The document must be drafted in Arabic to be legally binding, though English translations are commonly included for international employees.

What sections should be included in a Agreement Contract Between Employer And Employees?

1. Parties: Identification of the employer and employee with 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 agreement including Company, Employee, Effective Date, etc.

4. Appointment and Term: Position title, employment status (permanent/temporary), and commencement date

5. Duties and Responsibilities: Primary responsibilities, reporting lines, and performance expectations

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

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

8. Remuneration and Benefits: Base salary, allowances, bonuses, and other financial benefits

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

10. Medical Insurance: Health insurance coverage as per Saudi law requirements

11. End of Service Benefits: Calculation and payment of end of service benefits as per Labor Law

12. Termination: Grounds for termination, notice periods, and procedures

13. Confidentiality: Protection of company information and trade secrets

14. Governing Law: Reference to Saudi Labor Law and Saudi courts' jurisdiction

15. Acknowledgment: Employee confirmation of understanding and acceptance of terms

What sections are optional to include in a Agreement Contract Between Employer And Employees?

1. Probationary Period: Include for new employees when a probation period is required (up to 90 days)

2. Non-Competition: For senior positions or roles with access to sensitive information

3. Intellectual Property Rights: For technical, creative, or R&D positions

4. Commission Structure: For sales positions or roles with variable compensation

5. International Assignment Terms: For expatriate employees or roles requiring international travel

6. Training Obligations: For positions requiring specific training or certification requirements

7. Stock Options/Equity: For senior executives or when equity compensation is offered

8. Remote Work Provisions: For positions allowing work from home or flexible locations

What schedules should be included in a Agreement Contract Between Employer And Employees?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance metrics

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

3. Schedule 3 - Company Policies: Key workplace policies including IT, harassment, and disciplinary procedures

4. Schedule 4 - Bonus Scheme: Details of any applicable bonus or commission structures

5. Schedule 5 - Code of Conduct: Company's code of conduct and ethical requirements

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

7. Appendix B - Health and Safety Policy: Workplace safety requirements and procedures

8. Appendix C - Confidentiality Agreement: Detailed confidentiality terms and 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

Cost

Free to use
Relevant legal definitions










































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Relevant Industries

Manufacturing

Technology

Healthcare

Financial Services

Retail

Construction

Education

Hospitality

Professional Services

Energy

Telecommunications

Real Estate

Transportation

Mining

Agriculture

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Production

Quality Assurance

Customer Service

Administration

Procurement

Business Development

Corporate Communications

Relevant Roles

Chief Executive Officer

General Manager

Department Manager

HR Director

Finance Manager

Sales Representative

Administrative Assistant

Technical Specialist

Project Manager

Operations Manager

Marketing Executive

Software Developer

Account Manager

Customer Service Representative

Research Analyst

Production Supervisor

Quality Control Inspector

Executive Assistant

Legal Counsel

Systems Engineer

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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