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Job Agreement for Saudi Arabia

Job Agreement Template for Saudi Arabia

A comprehensive employment agreement compliant with Saudi Arabian Labor Law (Royal Decree No. M/51) that establishes the terms and conditions of employment between an employer and employee. The document incorporates mandatory provisions required by Saudi labor regulations, including working hours, compensation, benefits, leave entitlements, and end of service benefits. It ensures compliance with Saudization requirements, wage protection system (WPS), and social insurance regulations while protecting both employer and employee interests under Saudi jurisdiction.

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What is a Job Agreement?

The Job Agreement serves as a foundational document for establishing employment relationships in Saudi Arabia, ensuring compliance with the Kingdom's stringent labor regulations. This document is essential for both Saudi nationals and expatriate workers, incorporating requirements from the Saudi Labor Law, social insurance regulations, and Wage Protection System. It should be used when hiring new employees or formalizing existing employment relationships, containing all mandatory provisions required by Saudi authorities. The agreement typically requires registration with the Ministry of Human Resources and Social Development and must be drafted in Arabic (with optional English translation). It includes comprehensive details about employment terms, benefits, and obligations while ensuring alignment with Saudization policies and other local employment requirements.

What sections should be included in a Job Agreement?

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 agreement

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

5. Term of Employment: Duration of employment (fixed-term or unlimited) and probation period if applicable

6. Work Location: Primary workplace location and any mobility requirements

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

8. Compensation: Base salary, allowances, and payment terms in compliance with WPS regulations

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

10. Benefits: Health insurance, social insurance (GOSI), and other benefits

11. End of Service Benefits: Calculation and payment terms for end of service gratuity

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

13. Confidentiality: Protection of company confidential information

14. Governing Law: Confirmation of Saudi Labor Law application and dispute resolution

15. Language: Specification of controlling language version (Arabic/English)

What sections are optional to include in a Job Agreement?

1. Non-Competition: Restrictions on working for competitors, used for senior positions or roles with access to sensitive information

2. Intellectual Property: IP rights assignment, relevant for technical or creative roles

3. Remote Work: Terms for remote working arrangements, if applicable

4. Commission Structure: Details of commission or bonus schemes for sales or performance-based roles

5. Training Requirements: Mandatory training commitments and associated bonds, if applicable

6. Housing Allowance Terms: Specific terms regarding housing benefits, particularly relevant for expatriate employees

7. Transportation Allowance: Terms of transportation benefits or allowances, if provided

8. Secondment Terms: For employees seconded from other entities or locations

What schedules should be included in a Job Agreement?

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 - Code of Conduct: Expected behavioral standards and ethical requirements

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

6. Appendix B - Performance Metrics: Specific KPIs or performance measurement criteria

7. Appendix C - Benefits Summary: Detailed description of all benefits and eligibility criteria

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

Manufacturing

Technology

Healthcare

Education

Construction

Retail

Oil and Gas

Professional Services

Hospitality

Telecommunications

Transportation and Logistics

Real Estate

Mining and Materials

Government and Public Sector

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Administration

Research and Development

Quality Assurance

Customer Support

Production

Business Development

Training and Development

Compliance

Relevant Roles

Chief Executive Officer

General Manager

Department Director

Project Manager

Software Engineer

HR Manager

Financial Controller

Sales Representative

Operations Manager

Administrative Assistant

Technical Specialist

Marketing Manager

Research Analyst

Legal Counsel

Production Supervisor

Customer Service Representative

Business Development Manager

Account Manager

Quality Control Inspector

Training Coordinator

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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