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The Standard Employment Agreement serves as a foundational document for establishing formal employment relationships in Saudi Arabia. It is designed to comply with the Saudi Labor Law (Royal Decree No. M/51), associated ministerial decisions, and Sharia principles, while incorporating modern employment practices and recent reforms in Saudi labor regulations. This agreement is suitable for both Saudi nationals and expatriate workers, covering essential aspects such as terms of employment, compensation, benefits, and termination procedures. It includes provisions for Saudization compliance and social insurance requirements, making it particularly relevant for companies operating in the Kingdom. The document can be customized for various position levels while maintaining compliance with mandatory legal requirements.

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 Duration: Position title, employment status (definite/indefinite term), and commencement date

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

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

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

8. Compensation and Benefits: Base salary, allowances, bonuses, and other benefits including GOSI contributions

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

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

11. Confidentiality: Protection of company information and trade secrets

12. Termination: Grounds and procedures for termination of employment

13. End of Service Benefits: Calculation and payment of end of service gratuity

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

15. Dispute Resolution: Process for resolving employment-related disputes