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Term Contract Employment Template for Saudi Arabia

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Term Contract Employment

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What is a Term Contract Employment?

The Term Contract Employment Agreement is specifically designed for use in Saudi Arabia where employers wish to engage employees for a fixed duration. This type of agreement is commonly used for project-based work, temporary assignments, or when companies want to establish clear temporal boundaries for the employment relationship. The agreement must comply with the Saudi Labor Law, which provides specific requirements for fixed-term contracts, including maximum duration limits and renewal terms. It contains all essential employment terms required by Saudi law, including working hours, leave entitlements, probation periods, and end of service benefits. This document is particularly relevant in contexts where the employment relationship is intended to be for a specific period or project, and helps both parties understand their rights and obligations under Saudi law.

What sections should be included in a Term Contract Employment?

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

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

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Position title, employment term duration, and probation period details

5. Duties and Responsibilities: Employee's main responsibilities, reporting lines, and work location

6. Working Hours and Days: Standard working hours, days, and overtime arrangements as per Saudi Labor Law

7. Remuneration and Benefits: Base salary, allowances, and statutory benefits including GOSI

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

9. Confidentiality: Protection of company confidential information and trade secrets

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

11. Termination: Grounds and procedures for contract termination, notice periods

12. Governing Law: Confirmation of Saudi Law application and dispute resolution

13. General Provisions: Standard boilerplate clauses including entire agreement and amendments

What sections are optional to include in a Term Contract Employment?

1. Non-Competition: Restrictions on post-employment competition, used for senior positions or roles with access to sensitive information

2. Intellectual Property Rights: IP ownership and assignment provisions, relevant for creative or technical roles

3. Company Policies: Reference to specific company policies, used when extensive internal policies exist

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

5. International Travel: Travel requirements and arrangements, for roles requiring regular travel

6. Housing Allowance: Specific terms for housing benefits, when provided

7. Education Allowance: Terms for education benefits for employee's children, when applicable

8. Remote Working: Provisions for remote work arrangements, if applicable

What schedules should be included in a Term Contract Employment?

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 the employee must adhere to

4. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

5. Appendix B - IT and Communications Policy: Rules regarding use of company IT systems and communication tools

6. Appendix C - Leave Policy: Detailed procedures for requesting and taking various types of leave

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

Relevant legal definitions



































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Relevant Industries

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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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