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2 Year Employment Contract Template for Saudi Arabia

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2 Year Employment Contract

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What is a 2 Year Employment Contract?

The 2 Year Employment Contract is a fundamental document used to establish and govern fixed-term employment relationships in Saudi Arabia. It serves as a comprehensive agreement between employers and employees, ensuring compliance with the Saudi Labor Law, Shari'ah principles, and various ministerial regulations. This contract type is particularly suitable for project-based roles, expatriate workers, or positions with defined term requirements. It includes essential provisions for remuneration, benefits, working conditions, and termination terms, while incorporating mandatory requirements such as GOSI registration, Wage Protection System compliance, and end of service benefits calculations. The document supports both Saudi nationals and expatriate workers, providing clarity on rights and obligations while ensuring alignment with Saudization requirements where applicable.

What sections should be included in a 2 Year 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 purpose of the agreement

3. Definitions: Key terms used throughout the contract

4. Appointment and Term: Position title, employment status, and duration of the 2-year contract

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 travel or relocation

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

8. Remuneration and Benefits: Base salary, allowances, bonuses, and other benefits

9. Leave Entitlements: Annual leave, sick leave, public holidays, and other authorized absences

10. Social Insurance and Medical Coverage: GOSI registration and medical insurance provisions

11. End of Service Benefits: Calculation and payment terms for end of service gratuity

12. Termination: Grounds and procedures for contract termination by either party

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

14. Governing Law: Specification of Saudi Law and Sharia principles as governing law

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

What sections are optional to include in a 2 Year Employment Contract?

1. Probation Period: 90-day probation period terms, used for new employees only

2. Non-Competition: Post-employment restrictions, used for senior positions or roles with access to sensitive information

3. Intellectual Property Rights: IP ownership provisions, used for creative or technical roles

4. Housing Allowance: Terms of housing provision or allowance, used when housing is provided

5. Transportation Allowance: Transportation benefits terms, used when transport is provided

6. Commission Structure: Commission calculation and payment terms, used for sales positions

7. Relocation Terms: Relocation assistance details, used for expatriate employees or internal transfers

8. Performance Bonus: Performance-based bonus structure, used for positions with variable compensation

What schedules should be included in a 2 Year Employment Contract?

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 and procedures applicable to the employee

4. Schedule 4 - Code of Conduct: Expected standards of behavior and professional conduct

5. Appendix A - Leave Policy: Detailed leave policies and procedures

6. Appendix B - Performance Review Process: Performance evaluation criteria and process

7. Appendix C - Benefits Summary: Comprehensive overview of all employment benefits

8. Appendix D - Required Documents: List of documents required for employment and visa purposes

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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