The Unlimited Employment Contract is the standard form of employment agreement in Saudi Arabia, used when establishing an ongoing employment relationship without a fixed end date. This document is essential for compliance with Saudi Labor Law and must be provided to all employees in accordance with Article 51 of the Saudi Labor Law. It serves as a comprehensive agreement detailing the employment relationship, including mandatory provisions required by law such as compensation, working hours, leave entitlements, and termination procedures. The contract should be drafted in Arabic (with optional English translation) and must align with both Sharia principles and Saudi labor regulations. It's particularly important as it forms the basis for calculating end-of-service benefits and other statutory entitlements under Saudi law.
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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 agreement purpose
3. Definitions: Key terms used throughout the contract
4. Appointment and Term: Position title, department, commencement date, and unlimited nature of the contract
5. Probation Period: Duration and terms of the probationary period as per Saudi Labor Law
6. Duties and Responsibilities: Employee's main duties, reporting lines, and work location
7. Working Hours and Days: Standard working hours, days, and overtime provisions
8. Compensation and Benefits: Base salary, allowances, and statutory benefits
9. Annual Leave: Annual leave entitlement and procedures
10. Sick Leave: Sick leave entitlement and notification requirements
11. Confidentiality: Protection of company confidential information
12. Termination: Grounds and procedures for contract termination
13. End of Service Benefits: Calculation and payment of end of service benefits
14. Governing Law: Application of Saudi Labor Law and Sharia principles
15. Language: Specification of Arabic as the official version with English translation
1. Non-Compete: Restrictions on post-employment competition, used for senior positions or roles with access to sensitive information
2. Intellectual Property: IP rights assignment, relevant for technical or creative roles
3. Housing Allowance: Details of housing benefits, if provided separately from basic salary
4. Transportation Allowance: Transportation benefit details, if provided separately
5. Commission Structure: For sales or commission-based roles
6. Remote Work Provisions: For positions allowing work from home or remote locations
7. Training Obligations: For positions requiring specific training commitments
8. Mobile Phone and Communication Allowance: For roles requiring constant communication or on-call duties
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 that form part of the employment terms
4. Schedule 4 - Code of Conduct: Expected behavioral standards and ethical guidelines
5. Appendix A - Required Documents: List of documents required for employment (certifications, qualifications, etc.)
6. Appendix B - Benefits Summary: Detailed description of all benefits and eligibility criteria
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