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Fixed Term Employment Agreement for Saudi Arabia

Fixed Term Employment Agreement Template for Saudi Arabia

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What is a Fixed Term Employment Agreement?

The Fixed Term Employment Agreement is a essential document used in Saudi Arabia when establishing employment relationships for a specific duration or project. This agreement type is particularly common in project-based industries, for expatriate employment, or when companies require temporary expertise. The document must comply with Saudi Labor Law, including recent amendments, and incorporate mandatory provisions regarding working conditions, benefits, and termination procedures. It serves as a comprehensive contract that outlines employment terms while ensuring compliance with local regulations, Saudization requirements, and Sharia principles. The agreement is crucial for protecting both employer and employee rights, providing clear documentation for work permit processes, and establishing transparent employment terms for a defined period.

What sections should be included in a Fixed Term Employment Agreement?

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 Term: Details of the position, job title, and fixed duration of employment

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

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

7. Working Hours and Days: Standard working hours, days, and provisions for overtime as per Saudi Labor Law

8. Probationary Period: Length and terms of the probationary period (if applicable, up to 90 days under Saudi law)

9. Remuneration and Benefits: Base salary, allowances, and statutory benefits

10. Annual Leave: Annual leave entitlement and rules for taking leave

11. Sick Leave: Sick leave entitlement and notification requirements

12. Confidentiality: Obligations regarding company confidential information

13. Intellectual Property: Ownership and rights to work product and inventions

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

15. Termination: Grounds and procedures for contract termination

16. Governing Law: Confirmation of Saudi Law application and Sharia compliance

17. Dispute Resolution: Process for resolving employment disputes through appropriate channels

What sections are optional to include in a Fixed Term Employment Agreement?

1. Non-Competition: Post-employment restrictions on working for competitors, used for senior positions or when dealing with sensitive information

2. Housing Allowance: Details of housing benefits, used when accommodation is provided

3. Transportation Allowance: Details of transportation benefits, used when transport is provided

4. Commission Structure: Details of sales or performance-based commission, used for sales or similar roles

5. Educational Assistance: Terms for educational support or training, used when offering professional development

6. Relocation Terms: Provisions for relocation assistance, used for expatriate employees or internal transfers

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

8. Performance Bonus: Structure and conditions for performance-based bonuses

9. Family Status Benefits: Additional benefits related to family status, used when offering family-related benefits

What schedules should be included in a Fixed Term Employment Agreement?

1. Schedule 1 - Job Description: Detailed description of roles, 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: Expected standards of behavior and professional conduct

5. Appendix A - Required Documents: List of documents required for employment (work permits, certificates, etc.)

6. Appendix B - Performance Metrics: Specific KPIs and performance evaluation criteria

7. Appendix C - Benefits Summary: Detailed overview of all benefits and eligibility conditions

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

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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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