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Regular Employee Contract Template for Saudi Arabia

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Regular Employee Contract

"I need a Regular Employee Contract for a Senior Software Developer position in Riyadh, starting March 1, 2025, with strong confidentiality and IP protection clauses, including provisions for remote work two days per week and special provisions for technical training allowances."

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What is a Regular Employee Contract?

The Regular Employee Contract is a fundamental document used to establish employment relationships in Saudi Arabia, designed to comply with the Saudi Labor Law and related regulations. This contract is essential for any business operating in Saudi Arabia when hiring full-time employees, whether Saudi nationals or expatriates. It encompasses all mandatory elements required by local law, including basic employment terms, compensation structures, working hours, leave entitlements, and end of service benefits. The document ensures compliance with various regulatory requirements including social insurance (GOSI) registration, Wage Protection System (WPS) regulations, and where applicable, Saudization requirements. This template is adaptable for various employment levels while maintaining consistency with legal requirements and protecting both employer and employee interests.

What sections should be included in a Regular Employee Contract?

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

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 (definite/indefinite term), and commencement date

5. Probation Period: Duration and terms of the probationary period as per Saudi Labor Law

6. Duties and Responsibilities: Overview of the employee's main duties and reporting relationships

7. Place of Work: Primary workplace location and any flexibility arrangements

8. Working Hours and Days: Standard working hours, days, and overtime provisions

9. Compensation and Benefits: Base salary, allowances, and other benefits

10. Annual Leave: Leave entitlements and procedures

11. Sick Leave: Sick leave entitlements and notification requirements

12. Other Leave Entitlements: Other statutory leaves including Hajj leave, maternity leave, etc.

13. Social Insurance: GOSI registration and contribution requirements

14. End of Service Benefits: Calculation and payment of end of service gratuity

15. Termination: Grounds and procedures for contract termination

16. Governing Law: Confirmation of Saudi Labor Law application

What sections are optional to include in a Regular Employee Contract?

1. Confidentiality: Detailed confidentiality obligations for positions with access to sensitive information

2. Non-Competition: Post-employment restrictions, recommended for senior positions or technical roles

3. Intellectual Property: IP rights assignment, relevant for creative or technical positions

4. Mobility Clause: Required for positions that may involve relocation or frequent travel

5. Commission Structure: For sales positions or roles with variable compensation

6. Remote Work Provisions: For positions allowing work from home or remote locations

7. Training Obligations: For positions requiring specific training or certifications

8. Company Car Provisions: For positions including company vehicle benefits

What schedules should be included in a Regular Employee 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 employment

4. Schedule 4 - Code of Conduct: Expected behavioral standards and ethical guidelines

5. Schedule 5 - Benefits Summary: Detailed description of all applicable benefits and eligibility criteria

6. Appendix A - Acknowledgment Forms: Required forms and declarations to be signed by employee

7. Appendix B - GOSI Registration: Social insurance registration details and requirements

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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