This Permanent Employment Contract template is designed for use in Saudi Arabia when establishing indefinite-term employment relationships. It ensures compliance with the Saudi Labor Law (Royal Decree No. M/51) and associated regulations, including requirements for Saudization, social insurance, and the Wage Protection System. The document should be used when hiring employees on a permanent basis in Saudi Arabia, covering essential elements such as compensation, benefits, working conditions, and termination provisions. It includes mandatory clauses required by Saudi law while maintaining flexibility for company-specific policies and additional benefits. The contract serves as a foundational document for establishing clear employment terms while protecting both employer and employee rights under Saudi jurisdiction.
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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 reference to any preceding arrangements
3. Definitions: Key terms used throughout the contract
4. Appointment and Term: Position title, employment start date, and confirmation of permanent status
5. Duties and Responsibilities: Detailed description of the employee's role, responsibilities, and reporting relationships
6. Place of Work: Primary workplace location and any mobility requirements
7. Working Hours: Standard working hours, days, and break periods as per Saudi Labor Law
8. Compensation and Benefits: Base salary, allowances, and other benefits including housing, transportation, and medical insurance
9. Annual Leave: Annual leave entitlement and rules for requesting and taking leave
10. Sick Leave: Sick leave entitlements and notification procedures
11. Confidentiality: Obligations regarding company confidential information
12. End of Service Benefits: Calculation and payment of end of service benefits as per Saudi Labor Law
13. Termination: Grounds for termination and notice periods for both parties
14. Governing Law: Confirmation of Saudi Law application and dispute resolution procedures
1. Probationary Period: Terms of probationary period if applicable (not required for all permanent contracts)
2. Non-Compete: Post-employment restrictions, used for senior positions or roles with access to sensitive information
3. Bonus Scheme: Details of any performance-based bonus arrangements, if applicable
4. Intellectual Property: IP rights and assignments, particularly relevant for technical or creative roles
5. Remote Working: Terms for remote work arrangements if applicable
6. International Travel: Terms for international travel and associated benefits if role requires travel
7. Education and Training: Professional development commitments and associated bonds if applicable
8. Company Car: Terms related to company vehicle provision if applicable
1. Schedule 1 - Job Description: Detailed breakdown of job responsibilities and requirements
2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components and benefits
3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms
4. Schedule 4 - Medical Insurance Details: Summary of medical insurance coverage and benefits
5. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines
6. Appendix B - IT and Communications Policy: Rules regarding use of company IT systems and communication tools
Relevant legal definitions
Clauses
Relevant Industries
Banking & Finance
Technology
Manufacturing
Healthcare
Education
Retail
Construction
Energy & Utilities
Professional Services
Telecommunications
Hospitality
Transportation & Logistics
Real Estate
Mining & Resources
Media & Entertainment
Relevant Teams
Human Resources
Legal
Finance
Operations
Information Technology
Sales
Marketing
Research & Development
Customer Service
Administration
Quality Assurance
Business Development
Project Management
Executive Management
Relevant Roles
Chief Executive Officer
General Manager
Department Manager
Senior Executive
Technical Specialist
Administrative Assistant
Sales Representative
Human Resources Manager
Financial Analyst
Project Manager
Software Developer
Operations Manager
Marketing Executive
Research Analyst
Customer Service Representative
Account Manager
Legal Counsel
Business Development Manager
IT Support Specialist
Quality Control Manager
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