The Company Contract For Employees serves as the primary legal document governing the employment relationship between companies and their employees in Saudi Arabia. This contract template is designed to comply with the Saudi Labor Law (Royal Decree No. M/51) and related ministerial resolutions, while incorporating Islamic Shariah principles that underpin the Kingdom's legal framework. It is essential for both new hires and existing employees requiring contract updates, providing comprehensive coverage of employment terms, rights, and obligations. The document includes mandatory provisions required by Saudi law, such as probation periods, working hours, leave entitlements, and end-of-service benefits, while allowing flexibility to accommodate specific role requirements and additional benefits. Regular updates ensure continued compliance with evolving labor regulations and Saudization requirements.
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1. Parties: Identification of the employer company and the employee, including full legal names and relevant details
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the contract and their meanings
4. Appointment and Term: Position, job title, employment status (definite/indefinite term), and commencement date
5. Duties and Responsibilities: Main responsibilities, reporting lines, and performance expectations
6. Compensation and Benefits: Base salary, allowances, bonuses, and other financial benefits
7. Working Hours and Location: Standard working hours, workplace location, and any flexibility arrangements
8. Leave Entitlements: Annual leave, sick leave, hajj leave, and other statutory leave entitlements
9. Confidentiality: Obligations regarding company confidential information and trade secrets
10. Intellectual Property: Ownership and rights regarding work-created intellectual property
11. End of Service Benefits: Calculation and payment of end of service gratuity as per Saudi Labor Law
12. Termination: Grounds and procedures for contract termination, notice periods, and consequences
13. Governing Law: Confirmation of Saudi Law application and dispute resolution procedures
1. Probation Period: Details of probationary period if applicable (up to 90 days as per Saudi law)
2. Non-Competition: Post-employment restrictions, used for senior positions or roles with access to sensitive information
3. Housing Allowance: Specific terms regarding housing benefits if provided
4. Transportation Allowance: Details of transportation benefits if provided
5. Commission Structure: For sales or commission-based roles
6. International Assignment: Additional terms for expatriate employees
7. Training Obligations: Specific training requirements and associated commitments
8. Medical Insurance: Details of health insurance coverage if exceeding statutory requirements
1. Job Description: Detailed outline of role responsibilities and requirements
2. Compensation Structure: Breakdown of salary components and calculation methods
3. Company Policies: Reference to key company policies and procedures
4. Benefits Summary: Detailed description of all benefits and eligibility criteria
5. Performance Metrics: Specific KPIs and performance evaluation criteria
6. Code of Conduct: Company's code of conduct and ethical guidelines
7. IT and Systems Usage Policy: Rules regarding use of company IT systems and equipment
8. Disciplinary Procedures: Detailed disciplinary process and potential consequences
Authors
Relevant legal definitions
Clauses
Relevant Industries
Banking & Finance
Oil & Gas
Technology
Manufacturing
Healthcare
Education
Retail
Construction
Professional Services
Telecommunications
Hospitality
Real Estate
Transportation & Logistics
Mining
Insurance
Relevant Teams
Human Resources
Legal
Finance
Operations
Information Technology
Sales
Marketing
Research & Development
Customer Service
Production
Quality Assurance
Business Development
Administration
Compliance
Project Management
Relevant Roles
Chief Executive Officer
General Manager
Department Director
Senior Manager
Project Manager
Technical Specialist
Sales Representative
Administrative Assistant
Human Resources Officer
Financial Analyst
Operations Manager
Research Scientist
Software Developer
Marketing Coordinator
Customer Service Representative
Legal Counsel
Account Manager
Production Supervisor
Quality Control Inspector
Business Development Executive
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