The Contract For One Year Employment is a standardized agreement designed for use in Saudi Arabia when establishing fixed-term employment relationships. This document type is particularly relevant for organizations seeking to hire employees for specific projects, temporary positions, or when testing new market opportunities. It must comply with Saudi Labor Law (Royal Decree No. M/51) and related regulations, including GOSI requirements and Saudization policies. The contract includes all mandatory employment terms required by Saudi law while providing flexibility to accommodate various roles and industries. It's commonly used for both Saudi nationals and expatriate workers (subject to work permit requirements) and includes provisions for probationary periods, statutory benefits, and end of service calculations specific to fixed-term contracts under Saudi legislation.
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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 purpose of the agreement
3. Definitions: Key terms used throughout the contract
4. Term of Employment: Specification of the one-year duration, start date, and any probationary period
5. Position and Duties: Job title, role description, and primary responsibilities
6. Work Location and Hours: Primary workplace and standard working hours as per Saudi Labor Law
7. Compensation and Benefits: Base salary, allowances, and statutory benefits including GOSI
8. Leave Entitlements: Annual leave, sick leave, and other statutory leave rights
9. Confidentiality and Data Protection: Obligations regarding company information and data security
10. Company Policies: Adherence to employer's policies and procedures
11. Termination: Grounds and procedures for contract termination as per Saudi Labor Law
12. End of Service Benefits: Calculation and payment of end of service gratuity
13. Governing Law: Confirmation of Saudi Law application and dispute resolution
14. Entire Agreement: Standard boilerplate confirming this is the complete agreement
1. Mobility Clause: Required if employee may need to work at different locations
2. Non-Competition: Restrictions on post-employment competition, if applicable to position
3. Housing Allowance: If separate housing allowance is provided beyond basic salary
4. Transportation Allowance: If separate transportation allowance is provided
5. Commission Structure: For sales or commission-based positions
6. Performance Bonus: If bonus schemes are applicable
7. Medical Insurance: If additional private medical insurance is provided beyond statutory requirements
8. Intellectual Property Rights: For positions involving creative or technical work
9. Remote Working Provisions: If remote work is permitted occasionally or regularly
1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and reporting lines
2. Schedule 2 - Compensation Details: Breakdown of salary components and payment schedule
3. Schedule 3 - Benefits Summary: Detailed list of all benefits and allowances
4. Schedule 4 - Company Policies: Key company policies that form part of the employment terms
5. Appendix A - Code of Conduct: Company's code of conduct and ethical standards
6. Appendix B - Leave Policy: Detailed leave policies and procedures
7. Appendix C - Performance Evaluation Criteria: If applicable, performance measurement criteria and review process
Relevant legal definitions
Clauses
Relevant Industries
Banking & Financial Services
Healthcare
Information Technology
Manufacturing
Retail
Education
Construction
Professional Services
Telecommunications
Energy & Resources
Real Estate
Hospitality
Transportation & Logistics
Media & Entertainment
Relevant Teams
Human Resources
Legal
Finance
Operations
Administration
Compliance
Recruitment
Payroll
Employee Relations
Relevant Roles
General Manager
Project Manager
Software Developer
Sales Representative
Administrative Assistant
Financial Analyst
HR Coordinator
Marketing Specialist
Operations Manager
Research Analyst
Technical Support Engineer
Business Development Manager
Account Executive
Customer Service Representative
Quality Assurance Specialist
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