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Overseas Employment Contract for Saudi Arabia

Overseas Employment Contract Template for Saudi Arabia

This document is a comprehensive employment contract designed for foreign workers in Saudi Arabia, complying with the Saudi Labor Law and related regulations. It establishes the terms and conditions of employment between a Saudi employer and a foreign employee, including essential provisions for compensation, benefits, working hours, leave entitlements, and end of service benefits. The contract must adhere to specific requirements set by the Ministry of Human Resources and Social Development (MHRSD) and includes mandatory provisions for work permits, residence visas, and repatriation terms, while ensuring compliance with Saudi Arabia's labor regulations and Saudization policies.

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What is a Overseas Employment Contract?

The Overseas Employment Contract is a mandatory legal document required for all foreign workers employed in Saudi Arabia. This contract serves as the primary agreement governing the employment relationship between Saudi employers and their foreign employees, ensuring compliance with Saudi Labor Law, MHRSD regulations, and related ministerial decisions. It must be drafted in both Arabic and English, with the Arabic version prevailing in case of disputes. The document is essential for obtaining work permits, residence visas (Iqama), and maintaining legal employment status in Saudi Arabia. It includes comprehensive details about employment terms, benefits, obligations of both parties, and specific provisions required by Saudi law, such as end of service benefits and repatriation terms. The contract must be authenticated by relevant authorities and forms the basis for protecting both employer and employee rights under Saudi jurisdiction.

What sections should be included in a Overseas Employment Contract?

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, including specific Saudi legal terminology

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

5. Term of Employment: Contract duration, probation period, and renewal terms

6. Place of Work: Primary workplace location and potential for relocation or travel

7. Working Hours and Days: Standard working hours, days of work, and treatment of Ramadan hours

8. Compensation and Benefits: Base salary, allowances, bonuses, and other financial benefits

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

10. Medical Insurance: Healthcare coverage details as per Saudi law requirements

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

12. Termination: Grounds for termination, notice periods, and consequences

13. Repatriation: Terms for return travel upon contract completion or termination

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

What sections are optional to include in a Overseas Employment Contract?

1. Non-Competition: Restrictions on post-employment activities, used for senior or technical positions

2. Confidentiality: Protection of company information, recommended for roles with access to sensitive data

3. Training Obligations: Required when specific training is provided with associated commitments

4. Housing Provisions: When employer provides accommodation or housing allowance

5. Transportation Arrangements: When employer provides transportation or transport allowance

6. Commission Structure: For sales or performance-based roles with variable compensation

7. Overtime Arrangements: For roles where overtime is regular or specifically structured

8. Family Status Provisions: When family visas and related benefits are included

What schedules should be included in a Overseas Employment Contract?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and payment structure

3. Schedule 3 - Benefits Package: Comprehensive list of benefits and eligibility criteria

4. Schedule 4 - Company Policies: Key workplace policies and procedures applicable to the employee

5. Schedule 5 - Required Documents: List of documents needed for visa, work permit, and employment legalization

6. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

7. Appendix B - Safety Procedures: Workplace safety requirements and procedures

8. Appendix C - Leave Policy: Detailed leave application and approval procedures

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

Employment Contract

Cost

Free to use
Relevant legal definitions










































Clauses









































Relevant Industries

Oil & Gas

Construction

Healthcare

Education

Information Technology

Manufacturing

Retail

Hospitality

Financial Services

Engineering

Professional Services

Telecommunications

Transportation

Mining

Real Estate

Relevant Teams

Human Resources

Legal

Compliance

Global Mobility

Recruitment

Operations

Administration

Finance

Employee Relations

International Assignment Services

Relevant Roles

General Manager

Project Manager

Software Engineer

Medical Doctor

Teacher

Accountant

Construction Supervisor

Sales Manager

Technical Consultant

Chef

Architect

Mechanical Engineer

Nurse

Financial Analyst

HR Manager

Operations Director

Marketing Specialist

Laboratory Technician

Production Manager

Administrative Assistant

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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