Employment Contracts For Small Businesses in Saudi Arabia serve as essential legal documents that establish the employment relationship between small business employers and their employees. These contracts must comply with the Saudi Labor Law, including its 2021 reforms, and various ministerial resolutions governing employment relationships. The document is particularly crucial for small businesses as it helps ensure legal compliance while managing workforce obligations effectively. It includes provisions for essential employment terms, benefits, and obligations, while considering specific requirements for small businesses such as Saudization quotas, GOSI registration, and WPS compliance. This template is designed to be adaptable across various business sectors while maintaining compliance with Saudi Arabian employment regulations.
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1. Parties: Identification of the employer (company) 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, including defined terms from Saudi Labor Law
4. Position and Duties: Job title, role description, responsibilities, and reporting relationships
5. Term and Probation: Contract duration (fixed/unlimited term) and probation period details as per Saudi Labor Law
6. Working Hours and Location: Standard working hours, days, workplace location, and overtime arrangements
7. Remuneration: Base salary, allowances, benefits, and payment terms compliant with WPS regulations
8. Leave Entitlements: Annual leave, sick leave, Hajj leave, and other statutory leave entitlements
9. Social Insurance and Benefits: GOSI registration and contributions, medical insurance, and other statutory benefits
10. Confidentiality and Data Protection: Employee obligations regarding company information and data protection
11. Termination: Grounds and procedures for contract termination, notice periods, and end of service benefits
12. Governing Law: Confirmation of Saudi Labor Law application and dispute resolution procedures
1. Remote Working Arrangements: Used when the role allows for remote work, specifying conditions and requirements
2. Commission Structure: Include for sales positions or roles with performance-based compensation
3. Non-Competition: Used for senior positions or roles with access to sensitive information
4. Training Commitments: Include when the employer provides specific training with associated commitments
5. Housing Allowance Terms: Used when providing housing or housing allowance benefits
6. Transportation Arrangements: Include when providing transportation or transport allowance
7. Flexible Hours Policy: Used for roles with non-standard working hours 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 workplace policies including code of conduct and anti-harassment policy
4. Schedule 4 - IT and Communications Policy: Rules for use of company IT systems and communication tools
5. Appendix A - Leave Policy: Detailed procedures for requesting and taking various types of leave
6. Appendix B - Disciplinary Procedures: Progressive disciplinary steps and grievance procedures
7. Appendix C - Health and Safety Guidelines: Workplace safety procedures and emergency protocols
Relevant legal definitions
Clauses
Relevant Industries
Retail
Technology
Professional Services
Manufacturing
Food and Beverage
Construction
Healthcare
Education
Tourism and Hospitality
Trading
Real Estate
Transportation and Logistics
Relevant Teams
Human Resources
Finance
Operations
Sales
Marketing
Customer Service
Administration
Information Technology
Business Development
Legal
Supply Chain
Quality Control
Relevant Roles
General Manager
Office Manager
Administrative Assistant
Sales Representative
Customer Service Representative
Accountant
HR Coordinator
Marketing Specialist
Operations Manager
Technical Support Specialist
Project Coordinator
Store Manager
Supervisor
Business Development Executive
Finance Manager
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