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Hourly Employment Contract for Saudi Arabia

Hourly Employment Contract Template for Saudi Arabia

A comprehensive employment contract template designed for hourly-based employment relationships in Saudi Arabia, compliant with the Saudi Labor Law (Royal Decree No. M/51) and related regulations. This contract establishes the terms and conditions of hourly employment, including detailed provisions for working hours, wage calculations, overtime rates, and employee benefits as required by Saudi law. The document incorporates mandatory labor law requirements while providing flexibility to accommodate various industry-specific needs and role-specific modifications, ensuring proper documentation of the employment relationship and protection of both employer and employee rights under Saudi jurisdiction.

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What is a Hourly Employment Contract?

This Hourly Employment Contract template is designed for use in Saudi Arabia when establishing formal employment relationships based on hourly compensation. It is particularly suitable for part-time arrangements, flexible working schedules, or positions where hours may vary. The document ensures compliance with Saudi Labor Law requirements, including recent updates to employment regulations and the Wage Protection System. It incorporates essential elements such as working hours calculations, overtime provisions, and mandatory benefits, while allowing customization for specific industry needs. The contract should be used when hiring employees on an hourly basis rather than a fixed monthly salary, and it includes provisions for both Saudi nationals and expatriate workers, addressing Saudization requirements where applicable.

What sections should be included in a Hourly Employment Contract?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and agreement purpose

3. Definitions: Key terms used throughout the contract

4. Job Description and Duties: Detailed description of the position and associated responsibilities

5. Working Hours: Specification of normal working hours, scheduling, and overtime arrangements

6. Compensation: Hourly rate, payment schedule, and overtime calculation method

7. Probationary Period: Duration and terms of the initial probationary period as per Saudi Labor Law

8. Leave Entitlements: Annual leave, sick leave, and other statutory leave rights

9. Social Insurance and Benefits: GOSI registration and contributions, medical insurance requirements

10. Confidentiality and Data Protection: Employee obligations regarding company information and data

11. Employee Obligations: General duties, compliance with policies, and professional conduct requirements

12. Termination: Grounds and procedures for contract termination by either party

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

14. Governing Law: Confirmation of Saudi Labor Law application and jurisdiction

What sections are optional to include in a Hourly Employment Contract?

1. Non-Competition: Restrictions on post-employment competition, used for positions with access to sensitive information

2. Housing Allowance: Terms of housing benefits if provided, common for expatriate employees

3. Transportation Allowance: Details of transportation benefits if offered

4. Performance Bonuses: Structure and conditions for performance-based incentives

5. Training Requirements: Mandatory training programs and professional development expectations

6. Remote Work Provisions: Terms and conditions for remote work arrangements if applicable

7. Intellectual Property Rights: IP ownership terms for creative or technical positions

8. Equipment and Tools: Provisions regarding company-provided equipment and usage policies

What schedules should be included in a Hourly Employment Contract?

1. Schedule 1 - Detailed Job Description: Comprehensive list of job responsibilities and requirements

2. Schedule 2 - Compensation Details: Breakdown of hourly rate, allowances, and benefits calculation

3. Schedule 3 - Working Hours Schedule: Detailed work schedule including shifts if applicable

4. Schedule 4 - Company Policies: Reference to applicable company policies and procedures

5. Appendix A - Employee Code of Conduct: Standard company conduct requirements and expectations

6. Appendix B - Health and Safety Guidelines: Workplace safety procedures 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

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions




































Clauses



































Relevant Industries

Retail

Hospitality

Healthcare

Manufacturing

Construction

Information Technology

Education

Services

Logistics

Maintenance

Food and Beverage

Entertainment

Facilities Management

Customer Service

Professional Services

Relevant Teams

Human Resources

Legal

Operations

Administration

Recruitment

Compliance

Employee Relations

Payroll

Training and Development

Workforce Management

Relevant Roles

Part-Time Sales Associate

Hourly Consultant

Shift Supervisor

Contract Nurse

Technical Support Specialist

Customer Service Representative

Maintenance Technician

Teaching Assistant

Project Coordinator

Research Assistant

IT Support Technician

Office Assistant

Production Worker

Quality Control Inspector

Healthcare Assistant

Retail Manager

Service Technician

Laboratory Technician

Administrative Assistant

Training Instructor

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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