The Contract For Contractual Employees is essential for organizations operating in Saudi Arabia to establish clear, legally compliant employment relationships. This document is designed for use when hiring employees on a contractual basis, whether for fixed-term or unlimited duration contracts, ensuring compliance with Saudi Labor Law and related regulations. It includes all mandatory provisions required by Saudi authorities, such as probation periods, working hours, leave entitlements, and end of service benefits. The contract serves as a crucial tool for protecting both employer and employee rights while maintaining transparency in employment relationships. It is particularly relevant in the context of Saudi Arabia's evolving labor market, taking into account recent regulatory changes, Saudization requirements, and the Wage Protection System (WPS).
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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 purpose of the agreement
3. Definitions: Key terms used throughout the contract
4. Appointment and Term: Nature of employment, job title, duration (fixed/unlimited term), and commencement date
5. Probation Period: Duration and terms of the probationary period as per Saudi Labor Law
6. Duties and Responsibilities: Detailed description of the employee's role, responsibilities, and reporting structure
7. Place of Work: Primary workplace location and possibility of transfer or travel
8. Working Hours: Standard working hours, breaks, and overtime provisions as per Saudi Labor Law
9. Remuneration: Base salary, allowances, payment method, and timing through WPS
10. Leave Entitlements: Annual leave, sick leave, Hajj leave, and other statutory leave entitlements
11. Medical Insurance: Health insurance coverage as per Saudi requirements
12. End of Service Benefits: Calculation and payment of end of service gratuity
13. Termination: Grounds and procedures for contract termination by either party
14. Governing Law: Reference to Saudi Labor Law and jurisdiction
15. Language: Specification of Arabic as the governing language with English translation
1. Confidentiality: Required for positions with access to sensitive information or trade secrets
2. Non-Competition: For senior positions or roles with access to competitive information
3. Intellectual Property: For creative or technical roles involving development of IP
4. Performance Bonus: For roles with variable compensation components
5. Remote Work Provisions: For positions allowing work from home or remote locations
6. Training Obligations: For roles requiring specific training or certification
7. Housing Allowance: For expatriate employees or positions with housing benefits
8. Transportation Allowance: When transportation is provided or compensated
9. Education Allowance: For expatriate employees with family education benefits
1. Schedule 1 - Job Description: Detailed breakdown of role responsibilities and requirements
2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components and benefits
3. Schedule 3 - Company Policies: Key workplace policies and procedures
4. Schedule 4 - Code of Conduct: Expected behavioral standards and ethical guidelines
5. Appendix A - Required Documents: List of mandatory documents for employment
6. Appendix B - Performance Metrics: Key performance indicators and evaluation criteria
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