This New Employment Contract For Existing Employees is designed for use in Saudi Arabia when companies need to update or standardize employment terms for their current workforce. It becomes particularly relevant during corporate restructuring, policy updates, or when ensuring compliance with new labor law requirements. The document maintains or enhances existing employment terms while incorporating all mandatory provisions required by Saudi Labor Law, including recent reforms introduced through Royal Decree No. M/51. It covers essential aspects such as compensation, benefits, working hours, leave entitlements, and termination procedures, while also addressing modern workplace considerations like remote work arrangements and data protection. This template ensures compliance with Wage Protection System (WPS) requirements, Saudization regulations, and social insurance obligations.
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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 about the employment relationship, including the employee's current status and reason for new contract
3. Definitions: Key terms used throughout the agreement, including defined terms from Saudi Labor Law
4. Position and Duties: Job title, role description, responsibilities, and reporting relationships
5. Term and Employment Status: Duration of employment (unlimited term as default for existing employees) and probation period status
6. Compensation: Base salary, allowances, and other monetary benefits in compliance with WPS requirements
7. Working Hours and Days: Standard working hours, days, rest periods, and overtime arrangements
8. Leave Entitlements: Annual leave, sick leave, public holidays, and other statutory leave rights
9. Benefits: Health insurance, social insurance (GOSI), end of service benefits, and other statutory benefits
10. Confidentiality: Protection of company confidential information and trade secrets
11. Termination: Grounds and procedures for contract termination, notice periods, and rights upon termination
12. Governing Law: Confirmation of Saudi Labor Law application and dispute resolution procedures
1. Remote Work Arrangements: Include when employee has full or partial remote working rights
2. Non-Competition: Include for senior positions or roles with access to sensitive information
3. Bonus Scheme: Include if employee is eligible for performance-based bonuses or commission
4. International Travel: Include if role requires international travel and related compensation
5. Training Commitments: Include if specific training requirements or commitments exist
6. Intellectual Property Rights: Include for technical or creative roles involving IP creation
7. Secondment Terms: Include if employee may be seconded to other group companies
8. Variable Schedule: Include for roles with shifting work schedules or flexible hours
1. Schedule 1 - Compensation Details: Detailed breakdown of salary components, allowances, and payment schedule
2. Schedule 2 - Job Description: Detailed description of role, responsibilities, and performance expectations
3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms
4. Schedule 4 - Benefits Summary: Detailed description of all benefits and eligibility conditions
5. Appendix A - Code of Conduct: Company's code of conduct and ethical requirements
6. Appendix B - Health and Safety Policy: Workplace safety requirements and procedures
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Healthcare
Retail
Construction
Education
Professional Services
Telecommunications
Energy
Hospitality
Transportation
Real Estate
Media and Entertainment
Relevant Teams
Human Resources
Legal
Finance
Operations
Sales
Marketing
Information Technology
Customer Service
Research and Development
Production
Quality Assurance
Administration
Business Development
Corporate Communications
Relevant Roles
General Manager
Department Director
Senior Manager
Project Manager
Technical Specialist
Administrative Officer
Sales Executive
HR Coordinator
Financial Analyst
Operations Manager
Marketing Manager
Research Analyst
Customer Service Representative
Business Development Manager
IT Professional
Account Manager
Production Supervisor
Quality Control Inspector
Executive Assistant
Legal Counsel
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