This New Employment Contract template is designed for establishing new employment relationships in Saudi Arabia, ensuring compliance with the Saudi Labor Law (Royal Decree No. M/51) and related ministerial resolutions. The document should be used when hiring new employees, whether Saudi nationals or expatriates, and includes all mandatory provisions required by Saudi law. It covers essential elements such as compensation, benefits, working hours, leave entitlements, and termination procedures, while accommodating Saudization requirements and social insurance obligations. The contract can be customized for various positions and industries while maintaining compliance with local regulations, including recent labor law reforms and electronic documentation requirements under the Wage Protection System.
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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 contract
4. Position and Duties: Job title, role description, responsibilities, and reporting structure
5. Term and Probationary Period: Contract duration (fixed/unlimited term) and probationary period details
6. Working Hours and Location: Standard working hours, workplace location, and flexibility provisions
7. Compensation: Base salary, payment frequency, and method of payment in compliance with WPS
8. Benefits and Allowances: Mandatory benefits including annual leave, sick leave, and public holidays
9. Social Insurance and Healthcare: GOSI registration and medical insurance provisions
10. Termination: Grounds for termination, notice periods, and end-of-service benefits
11. Confidentiality: Protection of company information and trade secrets
12. Governing Law: Confirmation of Saudi Labor Law application and jurisdiction
1. Housing Allowance: Include when employer provides housing or housing allowance
2. Transportation Allowance: Include when employer provides transportation or related allowance
3. Commission Structure: Include for sales positions or roles with variable compensation
4. Training Requirements: Include when specific training or certifications are required
5. Non-Compete Clause: Include for senior positions or roles with access to sensitive information
6. Intellectual Property Rights: Include for creative or technical positions
7. Remote Work Provisions: Include if remote work is permitted
8. International Travel: Include if position requires international travel
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 workplace policies and procedures
4. Schedule 4 - Code of Conduct: Expected behavioral standards and ethical requirements
5. Appendix A - Leave Policy: Detailed leave entitlements and procedures
6. Appendix B - Performance Review Process: Performance evaluation criteria and timing
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Technology
Healthcare
Manufacturing
Retail
Construction
Education
Professional Services
Oil and Gas
Telecommunications
Hospitality
Real Estate
Transportation
Mining
Agriculture
Relevant Teams
Human Resources
Legal
Finance
Operations
Information Technology
Sales
Marketing
Research and Development
Customer Service
Administration
Production
Quality Assurance
Business Development
Compliance
Risk Management
Relevant Roles
Chief Executive Officer
General Manager
Department Director
Project Manager
Senior Engineer
Software Developer
Financial Analyst
HR Manager
Sales Representative
Marketing Specialist
Administrative Assistant
Operations Manager
Technical Supervisor
Research Scientist
Legal Counsel
Customer Service Representative
Account Manager
Production Supervisor
Quality Control Inspector
Business Development Manager
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