The Permanent Employment Agreement serves as the primary document establishing an ongoing employment relationship in Saudi Arabia. It is used when hiring both Saudi nationals and expatriate employees for indefinite-term positions, ensuring compliance with the Saudi Labor Law and related regulations. The agreement covers essential aspects including compensation, benefits, working hours, leave entitlements, and termination provisions, while incorporating mandatory requirements such as probationary periods, end of service benefits, and social insurance obligations. This document is crucial for maintaining clear employment terms and protecting both employer and employee rights under Saudi jurisdiction.
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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: Key terms used throughout the agreement
4. Appointment and Term: Position title, employment classification, and commencement date
5. Duties and Responsibilities: Main job responsibilities and reporting relationships
6. Place of Work: Primary workplace location and any mobility requirements
7. Working Hours: Standard working hours, rest periods, and overtime provisions as per Saudi Labor Law
8. Probationary Period: Duration and terms of the probationary period (max 90 days under Saudi law)
9. Compensation and Benefits: Base salary, allowances, and other benefits
10. Annual Leave: Annual leave entitlement and rules for taking leave
11. Sick Leave: Sick leave entitlements and notification requirements
12. Public Holidays: Entitlement to official public holidays
13. Social Insurance: GOSI registration and contribution details
14. Medical Insurance: Health insurance coverage details as per Saudi law
15. Confidentiality: Obligations regarding confidential information
16. Termination: Grounds and procedures for termination of employment
17. End of Service Benefits: Calculation and payment of end of service benefits
18. Governing Law: Confirmation of Saudi law application and dispute resolution
19. Language: Specification of controlling language version
1. Non-Competition: Restrictions on post-employment competition, used for senior positions or roles with access to sensitive information
2. Intellectual Property: IP rights and assignments, relevant for creative or technical positions
3. Remote Work: Terms for remote working arrangements, if applicable
4. Commission Structure: Details of commission calculations for sales positions
5. International Travel: Terms for international travel requirements
6. Training Commitments: Required training programs and associated bonds
7. Stock Options: Share options or equity participation for senior executives
8. Secondment Terms: Terms for potential secondment to other group companies
1. Job Description: Detailed description of role and responsibilities
2. Compensation Structure: Detailed breakdown of salary components and benefits
3. Company Policies: Key company policies that form part of employment terms
4. Code of Conduct: Expected standards of professional behavior
5. Bonus Scheme: Details of any applicable bonus calculations and terms
6. Training Requirements: Specific training requirements and development plans
7. IT and Communications Policy: Rules regarding use of company IT systems and communication tools
8. Safety Procedures: Workplace safety requirements and procedures
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Relevant Teams
Human Resources
Legal
Finance
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Customer Service
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