This Permanent Contract template is designed for use in establishing long-term employment relationships in Saudi Arabia, ensuring compliance with the Saudi Labor Law and related regulations. It serves as a comprehensive agreement between employers and employees, incorporating all mandatory provisions required by Saudi law while allowing customization for specific roles and industries. The document includes essential terms regarding compensation, benefits, working hours, leave entitlements, and end-of-service benefits, as well as provisions for probation periods and termination procedures. This template should be used when hiring permanent employees in Saudi Arabia, whether they are Saudi nationals or expatriate workers, and must be registered with the Ministry of Human Resources and Social Development.
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1. Parties: Identification of the employer and employee with full legal names and addresses
2. Background: Brief context of the employment relationship and agreement purpose
3. Definitions: Key terms used throughout the contract
4. Appointment and Term: Position title, duties, effective date, and permanent nature of employment
5. Probation Period: Duration and terms of the probationary period (maximum 90 days under Saudi law)
6. Duties and Obligations: Employee's responsibilities, reporting lines, and work standards
7. Place of Work: Primary workplace location and potential for transfer
8. Working Hours: Standard working hours, breaks, and overtime provisions
9. Compensation: Base salary, payment frequency, and method of payment
10. Benefits and Allowances: Mandatory benefits including housing allowance, transportation allowance
11. Annual Leave: Annual leave entitlement and scheduling procedures
12. Sick Leave: Sick leave entitlement and notification requirements
13. Public Holidays: Entitlement to official public holidays
14. Medical Insurance: Health insurance coverage details as per Saudi law
15. End of Service Benefits: Calculation and payment of end of service gratuity
16. Termination: Grounds and procedures for contract termination
17. Confidentiality: Protection of company confidential information
18. Governing Law: Confirmation of Saudi Labor Law application
1. Non-Compete: Restrictions on post-employment competition, if applicable to position
2. Intellectual Property: IP rights and assignments for creative/technical roles
3. Commission Structure: For sales positions or roles with variable compensation
4. International Travel: For roles requiring international travel
5. Training Obligations: For positions requiring specific training or certifications
6. Remote Work Provisions: For positions allowing work from home arrangements
7. Performance Bonus: Details of any performance-based incentive schemes
8. Stock Options: For senior positions eligible for equity participation
1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and requirements
2. Schedule 2 - Compensation Structure: Breakdown of salary components and benefits
3. Schedule 3 - Company Policies: Key company policies applicable to the employment
4. Schedule 4 - Code of Conduct: Expected behavioral standards and ethical guidelines
5. Appendix A - Benefits Summary: Detailed overview of all benefits and eligibility criteria
6. Appendix B - Reporting Structure: Organizational chart showing reporting relationships
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Manufacturing
Technology
Healthcare
Education
Construction
Retail
Oil and Gas
Telecommunications
Professional Services
Hospitality
Transportation and Logistics
Real Estate
Media and Entertainment
Relevant Teams
Human Resources
Legal
Finance
Operations
Information Technology
Sales
Marketing
Research and Development
Customer Service
Administration
Quality Assurance
Business Development
Production
Compliance
Relevant Roles
Chief Executive Officer
General Manager
Department Manager
Software Engineer
Financial Analyst
Human Resources Manager
Sales Representative
Marketing Specialist
Operations Manager
Administrative Assistant
Project Manager
Account Manager
Research Analyst
Technical Support Specialist
Business Development Manager
Quality Assurance Engineer
Customer Service Representative
Production Supervisor
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