The Labour Contract Agreement is a fundamental legal document required for all employment relationships in Saudi Arabia, as mandated by the Saudi Labor Law (Royal Decree No. M/51). This agreement must be used when establishing any formal employment relationship within Saudi Arabia, whether for Saudi nationals or expatriate workers. It should detail all aspects of the employment relationship including compensation, benefits, working conditions, and termination terms, while ensuring compliance with local labor laws, Saudization requirements, and Islamic Sharia principles. The document must be written in Arabic (with an optional English translation) and registered with the Ministry of Human Resources and Social Development through the Qiwa platform. Recent legislative updates, including the 2021 Labor Law reforms, have made this agreement even more crucial for protecting both employer and employee rights.
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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 agreement
4. Job Description and Duties: Detailed description of the position, role, and responsibilities
5. Term of Employment: Duration of contract (fixed-term or unlimited) and probation period details
6. Work Location: Primary workplace location and any mobility requirements
7. Working Hours: Standard working hours, breaks, and overtime arrangements
8. Remuneration: Base salary, allowances, and payment schedule in compliance with WPS
9. Benefits: Statutory benefits including GOSI registration and any additional benefits
10. Leave Entitlements: Annual leave, sick leave, and other statutory leave provisions
11. Confidentiality: Protection of company confidential information and trade secrets
12. Termination: Grounds and procedures for contract termination as per Saudi Labor Law
13. Governing Law: Confirmation of Saudi Law and Sharia principles as governing law
14. Dispute Resolution: Process for resolving employment disputes through labor courts
1. Non-Competition: Restrictions on post-employment competition, used for senior positions or roles with access to sensitive information
2. Intellectual Property Rights: IP ownership provisions, relevant for creative or technical roles
3. Remote Working: Terms for remote work arrangements, if applicable
4. Commission Structure: Details of commission-based compensation for sales or similar roles
5. International Assignment: Additional terms for expatriate employees or international assignments
6. Training Obligations: Requirements for training and professional development, including clawback provisions
7. Vehicle Allowance: Terms related to company vehicle or transport allowance
8. Housing Allowance: Specific terms regarding housing benefits and allowances
1. Schedule 1 - Detailed Job Description: Comprehensive outline of job responsibilities and performance expectations
2. Schedule 2 - Compensation Structure: Breakdown of salary components, allowances, and benefits
3. Schedule 3 - Company Policies: Key workplace policies and procedures 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 standards
6. Appendix B - Safety Procedures: Workplace safety guidelines and procedures
7. Appendix C - Benefits Summary: Detailed description of all employee benefits and eligibility criteria
8. Appendix D - Required Documents: List of documents required for employment and visa purposes
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Construction
Financial Services
Healthcare
Technology
Retail
Education
Professional Services
Hospitality
Energy
Telecommunications
Real Estate
Transportation
Media and Entertainment
Agriculture
Relevant Teams
Human Resources
Legal
Finance
Operations
Sales
Marketing
Information Technology
Customer Service
Research and Development
Administration
Production
Quality Assurance
Business Development
Executive Leadership
Facilities Management
Relevant Roles
Chief Executive Officer
Managing Director
Department Manager
Administrative Assistant
Sales Representative
Financial Analyst
Human Resources Manager
Software Engineer
Project Manager
Operations Manager
Marketing Specialist
Customer Service Representative
Technical Support Engineer
Research Analyst
Business Development Manager
Account Manager
Production Supervisor
Quality Control Inspector
Legal Counsel
Executive Assistant
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