The Employment Agreement is a fundamental document used to establish and govern the employment relationship between employers and employees in Saudi Arabia. It must comply with the Saudi Labor Law (Royal Decree No. M/51) and various ministerial resolutions, while adhering to Islamic Shariah principles. This agreement is essential for both Saudi nationals and expatriate workers, incorporating mandatory provisions regarding working hours, leave entitlements, end of service benefits, and termination procedures. It should be drafted in Arabic (with optional English translation) and must address specific requirements such as probationary periods, Saudization compliance, and GOSI registration. The agreement serves as a crucial reference point for both parties throughout the employment relationship and during any potential disputes.
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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 basis for the agreement
3. Definitions: Key terms used throughout the agreement
4. Appointment and Duration: Position title, employment status (definite/indefinite term), and commencement date
5. Duties and Responsibilities: Details 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, days, and overtime provisions as per Saudi Labor Law
8. Probationary Period: Duration and terms of the probationary period (if applicable)
9. Compensation and Benefits: Base salary, allowances, and mandatory benefits under Saudi law
10. Annual Leave and Public Holidays: Leave entitlements and public holiday provisions
11. Sick Leave: Sick leave entitlements and notification requirements
12. Confidentiality: Protection of company confidential information
13. Termination: Grounds and procedures for contract termination
14. End of Service Benefits: Calculation and payment of end of service benefits as per Saudi Labor Law
15. Governing Law: Confirmation of Saudi law application and dispute resolution procedures
1. Non-Competition: Post-employment restrictions on working with competitors (used for senior positions or technical roles)
2. Intellectual Property Rights: Assignment of IP rights to employer (used for creative or technical positions)
3. Company Policies: Reference to specific company policies (used when extensive internal policies exist)
4. Training Obligations: Training requirements and associated bonds (used when significant training investment is involved)
5. Commission Structure: Details of commission calculations (used for sales positions)
6. Remote Work Provisions: Terms for remote working arrangements (used when remote work is permitted)
7. International Travel: Terms for international travel and assignments (used for positions requiring travel)
8. Housing Benefits: Details of housing allowance or accommodation (used when housing is provided)
1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations
2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits
3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms
4. Schedule 4 - Performance Metrics: KPIs and performance evaluation criteria
5. Appendix A - Code of Conduct: Company's code of conduct and ethical requirements
6. Appendix B - Confidentiality Agreement: Detailed confidentiality obligations and procedures
Relevant legal definitions
Clauses
Relevant Industries
Oil & Gas
Financial Services
Technology
Healthcare
Construction
Manufacturing
Retail
Education
Professional Services
Telecommunications
Tourism & Hospitality
Real Estate
Transportation & Logistics
Mining
Defense & Security
Relevant Teams
Human Resources
Legal
Finance
Operations
Sales
Marketing
Information Technology
Research & Development
Administration
Customer Service
Engineering
Product Development
Quality Assurance
Public Relations
Business Development
Relevant Roles
Chief Executive Officer
Managing Director
General Manager
Department Head
Senior Manager
Project Manager
Technical Specialist
Sales Representative
Administrative Assistant
Human Resources Manager
Financial Controller
Operations Manager
Research Scientist
Software Developer
Marketing Executive
Legal Counsel
Account Manager
Engineer
Teacher/Instructor
Medical Professional
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