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Full Time Contract Template for Saudi Arabia

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Full Time Contract

"I need a Full Time Contract for a senior software engineer position in our Riyadh office, starting March 1, 2025, with specific clauses for intellectual property protection and remote work arrangements during non-core hours."

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What is a Full Time Contract?

This Full Time Contract template is designed for use in establishing employment relationships within Saudi Arabia, ensuring compliance with the Saudi Labor Law and related ministerial regulations. It should be used when hiring permanent employees in Saudi Arabia, whether Saudi nationals or expatriate workers, and includes all mandatory provisions required by local law. The contract addresses key aspects such as probationary periods, working hours, leave entitlements, end of service benefits, and termination procedures, while incorporating necessary considerations for Saudization requirements and work permit regulations for foreign employees. This document reflects current Saudi Arabian employment legislation and should be reviewed periodically to ensure continued compliance with any legislative updates or new ministerial resolutions.

What sections should be included in a Full Time Contract?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and basis for the contract

3. Definitions: Definitions of key terms used throughout the contract

4. Appointment and Term: Position title, employment start date, and probationary period details

5. Duties and Responsibilities: Main responsibilities, reporting lines, and performance expectations

6. Place of Work: Primary workplace location and potential for relocation or travel

7. Working Hours: Standard working hours, overtime provisions, and Ramadan working hours

8. Remuneration: Basic salary, allowances, and payment method complying with WPS

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

10. Benefits: Health insurance, GOSI contributions, and other standard benefits

11. End of Service Benefits: Calculation and payment of end of service gratuity as per Saudi Labor Law

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

13. Termination: Grounds for termination, notice periods, and associated procedures

14. Governing Law: Confirmation of Saudi Labor Law application and dispute resolution

15. Execution: Signature blocks and contract execution details

What sections are optional to include in a Full Time Contract?

1. Non-Competition: Restrictions on post-employment competition, used for senior or technical roles

2. Intellectual Property: IP rights and assignments, relevant for creative or technical positions

3. Performance Bonus: Variable compensation terms, used when offering performance-based incentives

4. Remote Work: Terms for remote working arrangements if applicable

5. International Travel: Terms for international assignments or travel requirements

6. Training Obligations: Specific training requirements and associated commitments

7. Company Car: Terms for provision and use of company vehicle if applicable

8. Housing Allowance: Specific terms for housing benefits if provided

What schedules should be included in a Full Time Contract?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance metrics

2. Schedule 2 - Compensation Structure: Breakdown of salary components 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 requirements

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

6. Appendix B - Confidential Information: Specific details of information considered confidential

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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