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Full Time Employment Contract for Saudi Arabia

Full Time Employment Contract Template for Saudi Arabia

A comprehensive employment agreement governed by Saudi Arabian law, specifically designed to establish a full-time employment relationship between an employer and employee. This contract incorporates all mandatory provisions required by the Saudi Labor Law (Royal Decree No. M/51), including working hours, compensation, benefits, and termination terms. The document ensures compliance with local regulations such as the Wage Protection System (WPS), social insurance requirements, and Saudization policies while protecting both employer and employee interests through clear terms and conditions.

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What is a Full Time Employment Contract?

This Full Time Employment Contract serves as the primary legal document establishing an employment relationship in Saudi Arabia. It is essential for any organization hiring employees in the Kingdom, whether for Saudi nationals or expatriate workers. The contract must comply with the Saudi Labor Law (Royal Decree No. M/51) and related ministerial resolutions, incorporating mandatory provisions regarding working hours, leave entitlements, end of service benefits, and termination procedures. It should be used when hiring permanent, full-time employees and must be registered with the Ministry of Human Resources and Social Development. The document includes provisions for probation periods, compensation structures, and other benefits while ensuring alignment with Sharia principles and local employment regulations.

What sections should be included in a Full Time 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 reference to any conditional requirements (e.g., work visas, professional qualifications)

3. Definitions: Key terms used throughout the contract

4. Position and Duties: Job title, role description, reporting relationships, and key responsibilities

5. Term and Probation Period: Contract duration (unlimited/fixed-term) and probation period details as per Saudi Labor Law

6. Place of Work: Primary workplace location and possible temporary assignments

7. Working Hours: Standard working hours, rest periods, and overtime arrangements in compliance with Saudi Labor Law

8. Remuneration: Base salary, allowances, payment method, and timing in accordance with WPS requirements

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

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

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

12. Termination: Notice periods and grounds for termination in accordance with Saudi Labor Law

13. Confidentiality: Protection of company information and trade secrets

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

What sections are optional to include in a Full Time Employment Contract?

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

2. Housing Allowance: Details of housing benefits, if provided separately from basic salary

3. Transportation Allowance: Transportation benefits, if provided separately from basic salary

4. Commission Structure: For sales or similar roles where commission is part of compensation

5. Remote Work Provisions: For positions allowing work from home or remote locations

6. International Assignment Terms: For expatriate employees or those requiring international travel

7. Training Commitments: When specific training is required with associated commitments

8. Bonus Scheme: Details of any performance-based bonus arrangements

What schedules should be included in a Full Time Employment Contract?

1. Job Description: Detailed outline of role responsibilities and requirements

2. Compensation Structure: Breakdown of salary components and benefits

3. Company Policies: Reference to key company policies including IT, social media, and code of conduct

4. Performance Metrics: KPIs and performance evaluation criteria

5. Benefits Summary: Details of all benefits including insurance coverage

6. Work Equipment: List of company-provided equipment and usage terms

7. Disciplinary Procedures: Details of the company's disciplinary process in line with Saudi Labor Law

8. Safety Procedures: Workplace safety requirements and procedures

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

Agreement Contract

Cost

Free to use
Relevant legal definitions








































Clauses



































Relevant Industries

Banking and Financial Services

Technology

Manufacturing

Healthcare

Education

Retail

Construction

Energy and Utilities

Professional Services

Telecommunications

Hospitality

Transportation and Logistics

Real Estate

Media and Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Customer Service

Research and Development

Administrative Services

Compliance

Strategy

Business Development

Quality Assurance

Relevant Roles

Chief Executive Officer

Managing Director

Department Manager

Software Engineer

Financial Analyst

Human Resources Specialist

Sales Representative

Project Manager

Administrative Assistant

Operations Manager

Marketing Coordinator

Research Analyst

Customer Service Representative

Technical Support Specialist

Business Development Manager

Account Executive

Quality Assurance Engineer

Product Manager

General Counsel

Data Scientist

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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