The Staff Contract serves as a fundamental legal document establishing the employment relationship between organizations and their employees in Saudi Arabia. This contract type is essential for any business operating in the Kingdom, as it must comply with the Saudi Labor Law (Royal Decree No. M/51) and align with Sharia principles. The document should be used when hiring both Saudi nationals and expatriate workers, incorporating mandatory requirements such as probationary periods, working hours, leave entitlements, and end of service benefits. It also needs to address Saudization requirements and GOSI (social insurance) obligations. The Staff Contract provides clarity on roles, responsibilities, compensation, and termination conditions while ensuring adherence to local employment regulations and cultural considerations.
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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 agreement purpose
3. Definitions: Key terms used throughout the contract
4. Appointment and Term: Job title, employment status (definite/indefinite term), and commencement date
5. Duties and Responsibilities: Main job responsibilities and reporting relationships
6. Place of Work: Primary workplace location and potential for relocation
7. Working Hours: Standard working hours, rest periods, and overtime provisions as per Saudi Labor Law
8. Probationary Period: Duration and terms of the probationary period (up to 90 days as per Saudi law)
9. Compensation and Benefits: Base salary, allowances, and statutory benefits including GOSI
10. Annual Leave: Annual leave entitlement and public holidays
11. Sick Leave: Sick leave entitlement and notification procedures
12. Confidentiality: Protection of company confidential information
13. Termination: Grounds and procedures for contract termination
14. End of Service Benefits: Calculation and payment of end of service gratuity
15. Governing Law: Application of Saudi Labor Law and Sharia principles
1. Non-Competition: Restrictions on working for competitors, used for senior positions or roles with access to sensitive information
2. Housing Allowance: Details of housing benefits, if provided separately from basic salary
3. Transportation Allowance: Details of transportation benefits, if provided separately from basic salary
4. Commission Structure: For sales or commission-based roles
5. Intellectual Property: IP rights assignment, typically for technical or creative roles
6. International Assignment: Additional terms for expatriate employees
7. Training Requirements: Mandatory training commitments and associated bonds
8. Remote Working: Terms for remote or hybrid working arrangements
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 that form part of the employment terms
4. Schedule 4 - Code of Conduct: Expected behavioral standards and ethical guidelines
5. Appendix A - Required Documents: List of documents required for employment (certificates, qualifications, etc.)
6. Appendix B - Performance Metrics: KPIs and performance evaluation criteria
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