The Evergreen Employment Contract is designed for use in Saudi Arabia when establishing permanent, indefinite-term employment relationships. It serves as a comprehensive agreement that complies with the Saudi Labor Law and related regulations, including recent reforms and ministerial resolutions. This document is particularly relevant for companies operating in Saudi Arabia who need to formalize employment relationships while ensuring compliance with local labor laws, Saudization requirements, and the wage protection system. It includes essential provisions for salary, benefits, working hours, leave entitlements, and end of service benefits, while maintaining flexibility for long-term employment relationships. The contract is structured to protect both employer and employee interests while adhering to Islamic law principles that underpin the Saudi legal system.
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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 relevant authorizations/visas if applicable
3. Definitions: Key terms used throughout the contract, including defined working hours, workplace, and other relevant terminology
4. Appointment and Duties: Job title, role description, reporting lines, and key responsibilities
5. Term and Probation: Confirmation of indefinite term (evergreen nature) and probation period as per Saudi Labor Law
6. Remuneration and Benefits: Base salary, allowances, benefits, and payment terms compliant with WPS requirements
7. Working Hours and Leave: Standard working hours, overtime provisions, and all types of leave entitlements
8. Employee Obligations: Core duties, confidentiality, non-competition, and compliance with company policies
9. End of Service Benefits: Calculation and payment of end of service gratuity as per Saudi Labor Law
10. Termination: Grounds and procedures for contract termination, notice periods, and consequences
11. Governing Law: Confirmation of Saudi Law application and dispute resolution procedures
1. Relocation Terms: Used when the employee is being relocated from another country or city, including relocation allowances and support
2. Commission Structure: For sales or commission-based roles, detailing commission calculations and payment terms
3. Housing Allowance: When providing separate housing benefits, detailing terms and conditions of housing provision
4. Transportation Allowance: When offering specific transportation benefits beyond standard allowances
5. Education Allowance: For expatriate employees with children, detailing education support if provided
6. Remote Working Provisions: When allowing work from home or remote working arrangements
7. Intellectual Property Rights: For roles involving creative or technical work where IP ownership needs to be clearly established
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 that form part of the employment terms
4. Schedule 4 - Code of Conduct: Behavioral expectations and ethical guidelines
5. Appendix A - Performance Metrics: KPIs and performance evaluation criteria
6. Appendix B - Benefits Summary: Detailed overview of all benefits and eligibility criteria
Authors
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Technology
Manufacturing
Healthcare
Education
Retail
Construction
Professional Services
Telecommunications
Energy and Utilities
Hospitality
Transportation and Logistics
Real Estate
Media and Entertainment
Relevant Teams
Human Resources
Legal
Finance
Operations
Information Technology
Sales
Marketing
Research and Development
Customer Service
Administration
Business Development
Compliance
Strategy
Relevant Roles
Chief Executive Officer
Managing Director
Department Manager
Senior Executive
Project Manager
Technical Specialist
Sales Manager
Administrative Officer
HR Manager
Financial Analyst
Operations Manager
Research Specialist
Marketing Manager
Software Engineer
Account Manager
Legal Counsel
Business Development Manager
Customer Service Representative
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