This One Year Employment Contract template is designed for use by companies operating in Saudi Arabia when hiring employees for fixed-term positions. It incorporates all mandatory requirements under Saudi Labor Law (Royal Decree No. M/51) and aligns with Islamic Shariah principles. The contract is suitable for both Saudi nationals and expatriate employees, including provisions for work permits and residency requirements where applicable. It covers essential elements such as compensation, benefits, working hours, leave entitlements, and end of service benefits, while ensuring compliance with local regulations including Saudization requirements and the Wage Protection System. This template should be used when establishing new fixed-term employment relationships or converting existing arrangements into formal documented agreements.
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1. Parties: Identification of the employer and employee with full legal names and details as required by Saudi Labor Law
2. Background: Brief context of the employment relationship and reference to any necessary work permits or visas
3. Definitions: Key terms used throughout the contract including Company, Employee, Effective Date, and other relevant terms
4. Term of Employment: Specification of the one-year term, start date, and any probation period
5. Position and Duties: Employee's job title, role, responsibilities, and reporting structure
6. Place of Work: Primary workplace location and any mobility requirements
7. Working Hours and Days: Standard working hours, days, and overtime arrangements as per Saudi Labor Law
8. Compensation and Benefits: Base salary, allowances, and mandatory benefits as per Saudi Labor Law
9. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements
10. Social Insurance and Medical Care: GOSI registration and medical insurance provisions
11. Confidentiality and Data Protection: Obligations regarding company information and data protection
12. End of Service Benefits: Calculation and payment terms for end of service benefits
13. Termination: Grounds and procedures for contract termination by either party
14. Governing Law: Reference to Saudi Labor Law and Islamic Shariah principles
1. Housing Benefits: Details of housing allowance or provided accommodation when applicable
2. Transportation Benefits: Transportation allowance or company vehicle provisions if offered
3. Training and Development: Any specific training requirements or professional development opportunities
4. Non-Competition: Post-employment restrictions if applicable to the role
5. Bonus and Commission Structure: If role includes performance-based compensation
6. Relocation Terms: For employees requiring relocation to Saudi Arabia
7. Educational Allowance: If providing education benefits for employee's children
8. Special Projects: For roles involving specific project assignments
1. Schedule 1 - Detailed Job Description: Comprehensive outline of role responsibilities and requirements
2. Schedule 2 - Compensation Structure: Breakdown of salary components and benefits
3. Schedule 3 - Company Policies: Key workplace policies and procedures
4. Schedule 4 - Performance Metrics: If applicable, KPIs and performance evaluation criteria
5. Appendix A - Required Documents: List of documents required for employment (visas, certificates, etc.)
6. Appendix B - Health Insurance Details: Summary of medical insurance coverage and benefits
Relevant legal definitions
Clauses
Relevant Industries
Technology
Manufacturing
Healthcare
Financial Services
Construction
Retail
Education
Professional Services
Hospitality
Energy
Telecommunications
Real Estate
Transportation
Media and Entertainment
Relevant Teams
Human Resources
Legal
Finance
Operations
Administration
Compliance
Talent Acquisition
Compensation and Benefits
Employee Relations
Organizational Development
Relevant Roles
General Manager
Project Manager
Software Engineer
Financial Analyst
Sales Representative
Administrative Assistant
HR Coordinator
Marketing Specialist
Operations Manager
Account Executive
Research Analyst
Technical Support Specialist
Business Development Manager
Executive Assistant
Customer Service Representative
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