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Written Contract Of Employment Template for Saudi Arabia

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Written Contract Of Employment

"I need a Written Contract of Employment for a senior software engineer position in our Riyadh office, including specialized IT confidentiality clauses and provisions for hybrid working arrangements, starting March 1, 2025."

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What is a Written Contract Of Employment?

The Written Contract Of Employment is a mandatory legal document in Saudi Arabia, required for establishing formal employment relationships between employers and employees. It serves as the primary reference point for employment terms and conditions, ensuring compliance with Saudi Labor Law (Royal Decree No. M/51) and related ministerial resolutions. This document is essential for obtaining work permits, establishing legal residency for expatriate workers, and maintaining proper employment records as required by Saudi authorities. The contract must be written in Arabic (with optional additional languages) and should address all mandatory elements prescribed by law, including working hours, compensation, benefits, and termination provisions. It forms the basis for resolving any employment-related disputes and protecting both employer and employee rights under Saudi jurisdiction.

What sections should be included in a Written Contract Of Employment?

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 contract

4. Position and Duties: Job title, role description, responsibilities, and reporting structure

5. Term of Employment: Contract duration (fixed-term or unlimited) and probationary period details

6. Working Hours and Location: Standard working hours, work location, and overtime arrangements

7. Compensation: Base salary, payment schedule, and method of payment in compliance with WPS

8. Benefits and Allowances: Mandatory benefits including housing allowance, transportation allowance, and medical insurance

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

10. Social Insurance: GOSI registration and contribution requirements

11. Termination: Grounds for termination, notice periods, and end-of-service benefits

12. Governing Law: Confirmation of Saudi Labor Law application and jurisdiction

What sections are optional to include in a Written Contract Of Employment?

1. Confidentiality: Required for positions with access to sensitive information or trade secrets

2. Non-Competition: Applicable for senior positions or roles with access to competitive information

3. Intellectual Property: Required for creative or technical positions involving development of IP

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

5. International Assignment Terms: For expatriate employees requiring specific visa and relocation terms

6. Training Commitments: When specific training is provided with associated commitments

7. Flexible Working Arrangements: For positions allowing remote work or flexible hours

8. Performance Bonus Structure: For positions eligible for performance-based bonuses

What schedules should be included in a Written Contract Of Employment?

1. Schedule 1 - Job Description: Detailed description of role responsibilities and requirements

2. Schedule 2 - Compensation Details: Breakdown of salary components and calculation methods

3. Schedule 3 - Company Policies: Key workplace policies and procedures applicable to the employee

4. Schedule 4 - Benefits Summary: Detailed description of all benefits and eligibility criteria

5. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

6. Appendix B - Health and Safety Policy: Workplace safety guidelines and procedures

7. Appendix C - IT and Communications Policy: Rules regarding use of company IT systems and communication tools

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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