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Probation Employment Contract for Saudi Arabia

Probation Employment Contract Template for Saudi Arabia

This document serves as a legally binding Probation Employment Contract governed by Saudi Arabian Labor Law, specifically complying with Royal Decree No. M/51 and related regulations. It establishes the terms and conditions of employment during the probationary period, which cannot exceed 90 days under Saudi law. The contract outlines essential elements including job responsibilities, compensation, performance evaluation criteria, and termination provisions, while ensuring compliance with local labor regulations, including Saudization requirements and mandatory benefits. It provides both employer and employee with clear guidelines and protections during the probationary period, aligned with Saudi Arabian employment legislation and cultural considerations.

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What is a Probation Employment Contract?

The Probation Employment Contract is a crucial document used when initiating new employment relationships in Saudi Arabia, whether for Saudi nationals or expatriate workers. It provides a structured framework for the initial employment period, allowing both parties to assess suitability for long-term employment. The document must strictly comply with Saudi Labor Law requirements, particularly Article 53 regarding probation periods, and includes essential terms such as compensation, working hours, performance expectations, and termination conditions. This contract type is fundamental in protecting both employer and employee rights during the probationary period, which cannot exceed 90 days under Saudi law. It serves as a precursor to permanent employment while ensuring all terms align with local regulations, including Saudization requirements, GOSI registration, and mandatory benefits.

What sections should be included in a Probation 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 reason for the probationary contract

3. Definitions: Key terms used throughout the contract, including 'Probation Period', 'Effective Date', and other relevant terminology

4. Position and Duties: Detailed description of the employee's role, responsibilities, and reporting relationships

5. Duration of Probation: Specific length of the probation period (not exceeding 90 days as per Saudi Labor Law) and start date

6. Employment Terms: Basic terms including work location, hours, and attendance requirements

7. Compensation and Benefits: Salary, allowances, and any benefits applicable during the probation period

8. Performance Evaluation: Criteria and process for evaluating the employee's performance during probation

9. Termination Provisions: Conditions and process for termination during the probation period

10. Confidentiality and Data Protection: Employee's obligations regarding company information and data protection

11. Governing Law: Confirmation of Saudi Labor Law application and jurisdiction

12. Execution: Signature blocks and execution requirements

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

1. Training Requirements: Used when specific training is required during the probation period

2. Non-Competition: Include when the role involves access to sensitive business information or client relationships

3. Housing Allowance: Include when housing allowance is provided during probation

4. Transportation Allowance: Include when transportation allowance is provided during probation

5. Working Abroad: Include if the role involves any work outside Saudi Arabia

6. Insurance Coverage: Include when additional insurance beyond GOSI is provided during probation

What schedules should be included in a Probation Employment Contract?

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

2. Schedule 2 - Compensation Details: Breakdown of salary components and benefits applicable during probation

3. Schedule 3 - Company Policies: Key company policies applicable during the probation period

4. Schedule 4 - Performance Evaluation Criteria: Specific metrics and criteria for evaluating probation period success

5. Appendix A - Required Documents: List of documents required from the employee (qualifications, certificates, etc.)

6. Appendix B - Employee Handbook Acknowledgment: Employee's acknowledgment of receiving and understanding company policies

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

Banking & Financial Services

Technology & Communications

Manufacturing & Industrial

Healthcare & Medical

Retail & Consumer Goods

Construction & Real Estate

Education & Training

Professional Services

Oil & Gas

Hospitality & Tourism

Transportation & Logistics

Government & Public Sector

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Customer Service

Research & Development

Administration

Quality Assurance

Business Development

Product Development

Corporate Communications

Compliance

Relevant Roles

Chief Executive Officer

Department Manager

Software Engineer

Sales Representative

Administrative Assistant

Financial Analyst

Human Resources Specialist

Marketing Coordinator

Project Manager

Operations Supervisor

Customer Service Representative

Technical Support Specialist

Research Analyst

Business Development Manager

Account Executive

Legal Counsel

Product Manager

Quality Assurance Engineer

Data Analyst

Executive 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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