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Terms And Conditions Of Employment Contract Template for Saudi Arabia

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Terms And Conditions Of Employment Contract

"I need a Terms and Conditions of Employment Contract for a senior software developer position in our Riyadh tech company, including remote work provisions and intellectual property clauses, with employment starting March 2025."

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What is a Terms And Conditions Of Employment Contract?

The Terms And Conditions Of Employment Contract is a fundamental document required for all employment relationships in Saudi Arabia, in accordance with the Saudi Labor Law and its implementing regulations. This document serves as the primary agreement governing the employment relationship, establishing clear rights and obligations for both parties. It must be written in Arabic (with an optional English translation) and should incorporate all mandatory provisions required by Saudi law, including working hours, compensation, benefits, and termination terms. The contract is essential for obtaining work permits, registering employees with the General Organization for Social Insurance (GOSI), and ensuring compliance with the Wage Protection System (WPS). It's particularly important given Saudi Arabia's strict labor regulations and the need to align with Saudization requirements.

What sections should be included in a Terms And Conditions Of Employment Contract?

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 agreement purpose

3. Definitions: Key terms used throughout the contract

4. Term of Employment: Duration of contract (fixed-term or unlimited) and probationary period details

5. Position and Duties: Job title, role description, and primary responsibilities

6. Place of Work: Primary workplace location and any mobility requirements

7. Working Hours: Standard working hours, breaks, and overtime arrangements

8. Remuneration: Base salary, payment schedule, and method of payment as per WPS requirements

9. Benefits and Allowances: Housing, transportation, and other standard benefits

10. Leave Entitlements: Annual leave, sick leave, and other statutory leave rights

11. Social Insurance and Healthcare: GOSI registration and medical insurance coverage

12. Termination of Employment: Notice periods and grounds for termination

13. Confidentiality: Protection of employer's confidential information

14. Governing Law: Confirmation of Saudi Labor Law application and jurisdiction

What sections are optional to include in a Terms And Conditions Of Employment Contract?