This Fixed Term Agreement template is designed for use in Saudi Arabia when establishing employment relationships for a specified duration. It is particularly suitable for project-based work, seasonal employment, or situations where a clear end date to the employment relationship is desired. The agreement complies with Saudi Labor Law (Royal Decree No. M/51) and subsequent reforms, incorporating mandatory provisions regarding contract duration, notice periods, and end of service benefits. Fixed Term Agreements in Saudi Arabia can be renewed by explicit agreement between parties, with specific legal implications after renewal. This document includes all necessary provisions required by the Ministry of Human Resources and Social Development, including working hours, leave entitlements, and compensation structure, while ensuring alignment with Wage Protection System requirements and Saudization regulations.
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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 agreement
4. Term and Duration: Specific start date and duration of the fixed-term contract, including any probationary period
5. Position and Duties: Job title, role description, responsibilities, and reporting relationships
6. Place of Work: Primary workplace location and any mobility requirements
7. Working Hours: Standard working hours, days, and provisions for overtime as per Saudi Labor Law
8. Compensation: Base salary, allowances, and payment terms compliant with WPS regulations
9. Leave Entitlements: Annual leave, sick leave, and other leave entitlements as per Saudi Labor Law
10. Confidentiality: Obligations regarding company confidential information
11. Termination: Grounds for termination and notice requirements
12. End of Service Benefits: Calculation and payment of end of service benefits
13. Governing Law: Confirmation of Saudi Law application and jurisdiction
14. Entire Agreement: Standard boilerplate confirming this is the complete agreement between parties
1. Non-Competition: Restrictions on post-employment activities - include only if relevant to position level and justified by business interests
2. Housing Allowance: Details of housing benefits if provided - include when housing is part of compensation package
3. Transportation Allowance: Transportation benefit details - include when transportation is part of compensation package
4. Performance Bonus: Performance-based compensation terms - include when bonus schemes are applicable
5. Training Obligations: Required training and associated commitments - include when specific training is required
6. Remote Work Provisions: Terms for remote working arrangements - include if remote work is permitted
7. Intellectual Property Rights: IP ownership and assignment - include for technical or creative roles
1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations
2. Schedule 2 - Compensation Structure: Breakdown of salary components, allowances, and benefits
3. Schedule 3 - Company Policies: Key company policies that form part of employment terms
4. Schedule 4 - Performance Metrics: KPIs and performance evaluation criteria if applicable
5. Appendix A - Required Documentation: List of required employee documents (qualifications, certificates, etc.)
6. Appendix B - Health Insurance Details: Summary of health insurance coverage and benefits
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