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Fixed Term Employment Contract for Saudi Arabia

Fixed Term Employment Contract Template for Saudi Arabia

A Fixed Term Employment Contract governed by Saudi Arabian law that establishes a defined-period employment relationship between an employer and employee. This contract complies with the Saudi Labor Law (Royal Decree No. M/51) and related ministerial resolutions, incorporating mandatory provisions regarding working hours, leave entitlements, end of service benefits, and termination procedures. The document includes essential terms required by the Ministry of Human Resources and Social Development while addressing Saudization requirements and social insurance obligations. It provides clear terms for both parties regarding the employment duration, responsibilities, compensation, and benefits within the framework of Saudi Arabian employment regulations and Sharia principles.

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What is a Fixed Term Employment Contract?

The Fixed Term Employment Contract is essential for organizations operating in Saudi Arabia that require temporary or project-based employment arrangements. This document is specifically designed to comply with Saudi Labor Law requirements while providing clarity on the temporary nature of employment. It's commonly used for project-specific roles, seasonal work, or when organizations need flexibility in workforce planning. The contract must be drafted in Arabic (with optional English translation) and includes mandatory provisions required by Saudi authorities regarding working hours, leave entitlements, and end of service benefits. It's particularly relevant for businesses participating in specific projects, handling seasonal increases in workforce, or engaging specialized expertise for a defined period. The document ensures compliance with local regulations while protecting both employer and employee interests throughout the fixed employment term.

What sections should be included in a Fixed Term Employment Contract?

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 confirmation of the fixed-term nature of the contract

3. Definitions: Key terms used throughout the agreement

4. Term and Duration: Specific start and end dates of the employment contract, including any probation period

5. Position and Duties: Job title, role description, responsibilities, and reporting relationships

6. Place of Work: Primary workplace location and any mobility requirements

7. Working Hours: Standard working hours, rest periods, and overtime arrangements as per Saudi Labor Law

8. Remuneration: Base salary, allowances, and payment schedule in compliance with WPS requirements

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

10. Benefits: Health insurance, social insurance (GOSI), and other contractual benefits

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

12. Confidentiality: Protection of employer's confidential information and trade secrets

13. Governing Law: Confirmation of Saudi Law application and dispute resolution mechanism

14. Language: Specification of Arabic as the official version with optional English translation

What sections are optional to include in a Fixed Term Employment Contract?

1. Non-Competition: Restrictions on post-employment competition, used for senior positions or roles with access to sensitive information

2. Intellectual Property: IP rights assignment and protection, relevant for technical or creative roles

3. Performance Targets: Specific KPIs and bonus structures, typically for sales or management positions

4. International Travel: Travel requirements and related compensation, for roles requiring international mobility

5. Training Commitments: Required training programs and associated bonds, common for development positions

6. Remote Working: Terms for remote work arrangements, if applicable

7. Commission Structure: Detailed commission calculations and terms, for sales positions

8. Housing Allowance Terms: Specific terms related to housing benefits, for expatriate employees

What schedules should be included in a Fixed Term Employment Contract?

1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and performance expectations

2. Schedule 2 - Compensation Structure: 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 - Performance Metrics: Detailed KPIs and performance evaluation criteria

5. Schedule 5 - Benefits Details: Comprehensive description of all benefits and their terms

6. Appendix A - Required Documents: List of documents required for employment visa/permits and compliance

7. Appendix B - Code of Conduct: Company's code of conduct and ethical guidelines

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions



































Clauses



































Relevant Industries

Construction

Oil & Gas

Technology

Healthcare

Education

Retail

Manufacturing

Professional Services

Hospitality

Financial Services

Telecommunications

Real Estate

Media & Entertainment

Transportation & Logistics

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research & Development

Quality Assurance

Administration

Project Management Office

Business Development

Customer Service

Production

Supply Chain

Relevant Roles

Project Manager

Construction Site Supervisor

IT Consultant

Sales Representative

Technical Specialist

Research Analyst

Educational Instructor

Healthcare Professional

Financial Analyst

Marketing Coordinator

Operations Manager

Software Developer

HR Coordinator

Quality Control Inspector

Business Development Manager

Administrative Assistant

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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