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This One Year Fixed Term Contract template is designed for use by employers in Saudi Arabia who wish to establish a fixed-duration employment relationship with clear terms and end dates. The document is particularly useful for project-based assignments, temporary positions, or when companies need to align employment terms with specific business cycles or projects. It complies with all requirements of the Saudi Labor Law and related regulations, including mandatory provisions for end-of-service benefits, leave entitlements, and working hours. The contract is structured to protect both employer and employee interests while ensuring legal compliance with Saudi employment regulations, making it suitable for both Saudi nationals and expatriate employees. It includes provisions for probation periods, performance expectations, and termination conditions as permitted under Saudi law for fixed-term contracts.

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 agreement to enter into a fixed-term contract

3. Definitions: Key terms used throughout the contract

4. Term and Employment: Specific duration of the one-year contract, start date, and probation period if applicable

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, rest periods, and overtime provisions as per Saudi Labor Law

8. Compensation: Base salary, payment frequency, and method of payment in compliance with WPS

9. Benefits: Statutory and additional benefits including medical insurance, housing allowance, and transportation allowance

10. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements

11. Confidentiality: Obligations regarding company confidential information and trade secrets

12. Termination: Grounds and procedures for contract termination, notice periods, and consequences

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

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