The Work Contract is a fundamental legal document required for all employment relationships in Saudi Arabia, whether for Saudi nationals or expatriate workers. It serves as the primary agreement governing the employer-employee relationship and must comply with the Saudi Labor Law, ministerial resolutions, and Sharia principles. This document is essential for obtaining work permits, residence visas (for expatriates), and registering employees with relevant government authorities such as GOSI. The contract should be drafted in Arabic (with optional English translation) and must include mandatory provisions required by Saudi law, including clear terms on compensation, working hours, leave entitlements, and end of service benefits. It's particularly important to note that this Work Contract template accommodates both fixed-term and unlimited term employment arrangements while ensuring compliance with Saudization requirements and other local regulations.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and identification numbers
2. Background: Brief context of the employment relationship and agreement to enter into the contract
3. Definitions: Key terms used throughout the contract
4. Position and Duties: Job title, role description, and main responsibilities
5. Term of Employment: Contract duration (fixed-term or unlimited) and probation period details
6. Work Location: Primary workplace location and any mobility requirements
7. Working Hours: Regular working hours, overtime arrangements, and rest periods as per Saudi Labor Law
8. Compensation: Base salary, allowances, and payment schedule in compliance with WPS
9. Leave Entitlements: Annual leave, sick leave, and other statutory leave rights
10. Benefits: Medical insurance, social insurance (GOSI), and other statutory benefits
11. Termination: Grounds and procedures for contract termination and notice periods
12. End of Service Benefits: Calculation and payment of end of service gratuity
13. Confidentiality: Protection of employer's confidential information
14. Governing Law: Specification of Saudi Law application and dispute resolution
15. Language: Specification of Arabic as the governing language with optional English translation
1. Non-Competition: Restrictions on post-employment competition, used for senior positions or roles with access to sensitive information
2. Intellectual Property: IP rights assignment, used for creative or technical positions
3. Remote Work: Terms for remote working arrangements, if applicable
4. Commission Structure: Details of commission-based compensation, used for sales positions
5. International Assignment: Terms for expatriate employees including visa obligations
6. Training Obligations: Training requirements and bond terms, if applicable
7. Performance Metrics: KPIs and performance evaluation criteria for bonus-eligible positions
1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and reporting lines
2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits
3. Schedule 3 - Company Policies: Reference to applicable company policies and procedures
4. Schedule 4 - Code of Conduct: Employee behavior expectations and workplace conduct rules
5. Appendix A - Required Documents: List of documents required for employment (certificates, IDs, etc.)
6. Appendix B - Medical Insurance Details: Summary of medical insurance coverage and benefits
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