The Standard Employment Agreement serves as a foundational document for establishing formal employment relationships in Saudi Arabia. It is designed to comply with the Saudi Labor Law (Royal Decree No. M/51), associated ministerial decisions, and Sharia principles, while incorporating modern employment practices and recent reforms in Saudi labor regulations. This agreement is suitable for both Saudi nationals and expatriate workers, covering essential aspects such as terms of employment, compensation, benefits, and termination procedures. It includes provisions for Saudization compliance and social insurance requirements, making it particularly relevant for companies operating in the Kingdom. The document can be customized for various position levels while maintaining compliance with mandatory legal requirements.
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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 purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Appointment and Duration: Position title, employment status (definite/indefinite term), and commencement date
5. Duties and Responsibilities: Detailed description of the employee's role, responsibilities, and reporting structure
6. Place of Work: Primary workplace location and potential for relocation or travel
7. Working Hours and Days: Standard working hours, days, breaks, and overtime provisions as per Saudi Labor Law
8. Compensation and Benefits: Base salary, allowances, bonuses, and other benefits including GOSI contributions
9. Leave Entitlements: Annual leave, sick leave, Hajj leave, and other statutory leave entitlements
10. Probationary Period: Duration and terms of the probationary period as per Saudi Labor Law
11. Confidentiality: Protection of company information and trade secrets
12. Termination: Grounds and procedures for termination of employment
13. End of Service Benefits: Calculation and payment of end of service gratuity
14. Governing Law: Confirmation of Saudi Law application and Sharia compliance
15. Dispute Resolution: Process for resolving employment-related disputes
1. Non-Competition: Restrictions on post-employment competition, used for senior positions or roles with access to sensitive information
2. Intellectual Property Rights: IP ownership provisions, relevant for technical or creative roles
3. Remote Work Provisions: Specific terms for remote working arrangements, if applicable
4. Commission Structure: Detailed commission calculations for sales or similar roles
5. International Assignment Terms: Additional terms for expatriate employees or international assignments
6. Training Obligations: Specific training requirements and associated commitments
7. Vehicle Allowance: Terms related to company vehicle or transport allowance
8. Housing Provisions: Terms related to housing allowance or company-provided accommodation
1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations
2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits
3. Schedule 3 - Company Policies: Key company policies including code of conduct, IT usage, and harassment policies
4. Schedule 4 - Performance Metrics: KPIs and performance evaluation criteria
5. Appendix A - Required Documents: List of required documents for employment (qualifications, certificates, etc.)
6. Appendix B - Benefits Summary: Detailed overview of all employee benefits and eligibility criteria
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Technology
Manufacturing
Healthcare
Retail
Construction
Education
Professional Services
Hospitality
Transportation
Energy
Telecommunications
Real Estate
Media and Entertainment
Mining and Resources
Relevant Teams
Human Resources
Legal
Finance
Operations
Sales
Marketing
Information Technology
Customer Service
Research and Development
Administration
Engineering
Product Development
Quality Assurance
Corporate Communications
Strategy
Relevant Roles
Chief Executive Officer
Managing Director
General Manager
Department Manager
Senior Manager
Project Manager
Technical Specialist
Sales Representative
Administrative Assistant
HR Manager
Financial Analyst
Software Developer
Operations Manager
Marketing Executive
Customer Service Representative
Research Analyst
Legal Counsel
Account Manager
Engineer
Teacher
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