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Full Time Employment Agreement for Saudi Arabia

Full Time Employment Agreement Template for Saudi Arabia

This document is a comprehensive Full Time Employment Agreement governed by Saudi Arabian law, specifically aligned with the Saudi Labor Law (Royal Decree No. M/51) and its implementing regulations. It establishes the formal employment relationship between an employer and employee, detailing all essential terms and conditions including compensation, benefits, working hours, leave entitlements, and end of service benefits. The agreement incorporates mandatory provisions required by Saudi labor regulations while allowing for customization based on specific industry requirements and company policies. It ensures compliance with local employment laws, including Saudization requirements and GOSI (General Organization for Social Insurance) regulations.

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What is a Full Time Employment Agreement?

This Full Time Employment Agreement is designed for use by companies operating in Saudi Arabia when hiring permanent employees. It serves as a legally binding document that outlines the complete employment relationship while ensuring compliance with Saudi Labor Law and related regulations. The agreement is essential for establishing clear terms of employment, protecting both employer and employee interests, and meeting legal requirements for employment documentation in Saudi Arabia. It includes mandatory provisions regarding working hours, compensation, benefits, and termination procedures, as well as optional clauses that can be customized based on the specific role, industry, and company policies. This document is particularly important given the strict employment regulations in Saudi Arabia and the need for clear documentation for various governmental procedures, including work permit applications and labor office registrations.

What sections should be included in a Full Time Employment Agreement?

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Position title, employment status, probationary period, and commencement date

5. Duties and Responsibilities: Main responsibilities, reporting lines, and work location

6. Working Hours and Days: Standard working hours, days, overtime provisions as per Saudi Labor Law

7. Compensation and Benefits: Base salary, allowances, and statutory benefits including GOSI contributions

8. Annual Leave and Public Holidays: Leave entitlements, public holidays, and leave request procedures

9. Sick Leave: Sick leave entitlements and notification procedures

10. Medical Insurance: Health insurance coverage as per Saudi law

11. Confidentiality: Protection of company confidential information

12. Intellectual Property: Ownership of work products and innovations

13. End of Service Benefits: Calculation and payment of end of service gratuity

14. Termination: Grounds for termination, notice periods, and procedures

15. Governing Law: Application of Saudi Labor Law and jurisdiction

What sections are optional to include in a Full Time Employment Agreement?

1. Relocation Benefits: Include when employee is being relocated from another country/city

2. Non-Compete: Include for senior positions or roles with access to sensitive information

3. Commission Structure: Include for sales positions or roles with variable compensation

4. Housing Allowance: Include when providing separate housing benefits

5. Transportation Allowance: Include when providing separate transportation benefits

6. Education Allowance: Include when providing education benefits for employees' children

7. Performance Bonus: Include when offering performance-based incentives

8. Remote Work Provisions: Include when allowing work from home or remote working arrangements

What schedules should be included in a Full Time Employment Agreement?

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

2. Compensation Structure: Breakdown of salary components and benefits

3. Company Policies: Reference to key company policies and procedures

4. Code of Conduct: Expected behavioral standards and ethical guidelines

5. Benefits Summary: Detailed explanation of all benefits and eligibility criteria

6. KPIs and Performance Metrics: Performance evaluation criteria and targets

7. Training Requirements: Mandatory training programs and development requirements

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

Banking & Financial Services

Oil & Gas

Technology

Healthcare

Manufacturing

Retail

Construction

Education

Professional Services

Telecommunications

Real Estate

Hospitality

Transportation & Logistics

Energy

Mining

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research & Development

Administration

Customer Service

Product Development

Quality Assurance

Business Development

Strategy

Corporate Communications

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Head

Senior Manager

Project Manager

Software Engineer

Financial Analyst

HR Manager

Sales Executive

Operations Manager

Research Analyst

Marketing Specialist

Administrative Assistant

Technical Specialist

Account Manager

Legal Counsel

Product Manager

Business Development Manager

Quality Assurance Specialist

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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