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Employment Service Agreement for Saudi Arabia

Employment Service Agreement Template for Saudi Arabia

A comprehensive employment agreement governed by Saudi Arabian law that establishes the formal employment relationship between an employer and employee. This document outlines the terms and conditions of employment in compliance with the Saudi Labor Law and related regulations, including working hours, compensation, benefits, and termination provisions. It incorporates mandatory requirements under Saudi law such as end-of-service benefits, leave entitlements, and probationary periods while ensuring alignment with Saudization requirements and other local employment regulations.

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Employment Service Agreement

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What is a Employment Service Agreement?

The Employment Service Agreement serves as the primary contractual document establishing and governing the employment relationship in Saudi Arabia. This agreement is essential for both Saudi nationals and expatriate workers, requiring compliance with the Saudi Labor Law, Saudization requirements, and related ministerial resolutions. It must be drafted in Arabic (with optional English translation) and typically includes comprehensive details about the position, compensation, benefits, working hours, and other terms of employment. The agreement should be registered with the Ministry of Human Resources and Social Development and must incorporate mandatory provisions regarding end-of-service benefits, leave entitlements, and notice periods. This document is crucial for protecting both employer and employee rights while ensuring compliance with local regulations and Shariah principles.

What sections should be included in a Employment Service Agreement?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Term: Position title, employment classification (definite/indefinite term), and commencement date

5. Duties and Responsibilities: Detailed description of the employee's role, reporting lines, and key responsibilities

6. Place of Work: Primary workplace location and potential for relocation or travel

7. Working Hours and Days: Standard working hours, days, and overtime arrangements in compliance with Saudi Labor Law

8. Compensation and Benefits: Base salary, allowances, and mandatory benefits as per Saudi regulations

9. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements

10. Probationary Period: Duration and terms of the probationary period as permitted by Saudi Labor Law

11. Confidentiality: Obligations regarding company confidential information and trade secrets

12. Intellectual Property: Ownership and rights related to work products and innovations

13. End of Service Benefits: Calculation and payment of end of service benefits as per Saudi Labor Law

14. Termination: Grounds and procedures for contract termination by either party

15. Governing Law: Confirmation of Saudi Law application and dispute resolution mechanisms

16. General Provisions: Standard contractual clauses including amendments, notices, and entire agreement

What sections are optional to include in a Employment Service Agreement?

1. Mobility Clause: Required when the role may involve temporary assignments to different locations

2. Non-Competition: Used for senior positions or roles with access to sensitive information, must comply with Saudi labor law restrictions

3. Housing Allowance: Detailed terms when providing housing or housing allowance beyond basic salary

4. Transportation Allowance: Specific terms for transportation benefits or allowances

5. Commission Structure: For sales or performance-based roles with variable compensation

6. Training Obligations: When specific training requirements or bonds are included

7. Medical Insurance: Details of medical insurance coverage beyond mandatory requirements

8. Stock Options/Incentives: For positions eligible for equity-based compensation

9. International Assignment Terms: For expatriate employees or roles involving international work

What schedules should be included in a Employment Service Agreement?

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

2. Schedule 2 - Compensation Structure: Breakdown of salary components, allowances, and benefits

3. Schedule 3 - Company Policies: Key workplace policies including code of conduct and HR procedures

4. Schedule 4 - Bonus Scheme: Details of any applicable bonus or incentive schemes

5. Schedule 5 - Training Requirements: Specific training programs or certifications required for the role

6. Appendix A - Confidential Information: Definition and examples of confidential information specific to the role

7. Appendix B - Benefits Summary: Complete overview of all benefits and eligibility conditions

8. Appendix C - Required Documents: List of documents required for employment and visa purposes (if applicable)

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions











































Clauses









































Relevant Industries

Banking & Financial Services

Technology

Manufacturing

Healthcare

Education

Retail

Construction

Oil & Gas

Professional Services

Telecommunications

Hospitality

Transportation & Logistics

Real Estate

Media & Entertainment

Government & Public Sector

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research & Development

Customer Service

Production

Quality Assurance

Business Development

Administration

Strategy

Supply Chain

Public Relations

Relevant Roles

Chief Executive Officer

Managing Director

Department Manager

Senior Executive

Technical Specialist

Administrative Assistant

Sales Representative

Project Manager

Human Resources Officer

Financial Analyst

Operations Manager

Customer Service Representative

Research Scientist

Marketing Coordinator

Software Developer

Legal Counsel

Account Manager

Production Supervisor

Quality Control Inspector

Business Development Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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