This indefinite contract template is designed for use in establishing permanent employment relationships in Saudi Arabia, in compliance with the Saudi Labor Law (Royal Decree No. M/51) and related regulations. The document serves as a comprehensive agreement between employers and employees, specifically structured as an Indefinite Contract which continues until terminated by either party according to statutory requirements. It includes mandatory provisions required by Saudi law, such as probationary periods, working hours, leave entitlements, and end of service benefits, while also accommodating company-specific policies and benefits. This template is regularly updated to reflect changes in Saudi labor regulations and can be customized based on specific employment terms while maintaining compliance with local law requirements.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and identification numbers
2. Background: Brief context of the employment relationship and reference to any preliminary agreements
3. Definitions: Key terms used throughout the contract
4. Appointment and Term: Nature of employment, job title, and indefinite duration of the contract
5. Duties and Responsibilities: Detailed description of the employee's role, reporting lines, and key responsibilities
6. Place of Work: Primary workplace location and potential for relocation or travel
7. Working Hours: Standard working hours, breaks, and overtime arrangements in compliance with Saudi Labor Law
8. Remuneration: Base salary, payment schedule, and method of payment through WPS
9. Benefits and Allowances: Mandatory benefits under Saudi law including housing, transportation, and medical insurance
10. Leave Entitlements: Annual leave, sick leave, Hajj leave, and other statutory leave rights
11. Probationary Period: Duration and terms of the probationary period as per Saudi Labor Law
12. Confidentiality: Protection of company information and trade secrets
13. Termination: Grounds and procedures for contract termination by either party
14. End of Service Benefits: Calculation and payment of end of service gratuity
15. Governing Law: Confirmation of Saudi Labor Law application and jurisdiction
1. Commission Structure: For sales positions or roles with variable compensation
2. Non-Competition: Restrictions on post-employment activities, if applicable to the role
3. Intellectual Property Rights: For positions involving creative or technical work
4. Remote Working Arrangements: For positions allowing work from home or flexible locations
5. Training Commitments: For positions requiring specific training or qualifications
6. International Travel: For roles requiring regular international travel
7. Performance Bonus: For positions eligible for performance-based incentives
8. Company Car Provision: For positions entitled to company vehicle use
1. Schedule 1 - Job Description: Detailed breakdown of position responsibilities and requirements
2. Schedule 2 - Compensation Details: Breakdown of salary components and calculation methods
3. Schedule 3 - Benefits Package: Detailed description of all benefits and eligibility criteria
4. Schedule 4 - Company Policies: Reference to applicable company policies and procedures
5. Schedule 5 - Working Hours and Shifts: Detailed working patterns and shift schedules if applicable
6. Appendix A - Code of Conduct: Company's code of conduct and ethical requirements
7. Appendix B - Safety Procedures: Workplace safety guidelines and requirements
Authors
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Healthcare
Retail
Construction
Education
Professional Services
Hospitality
Energy
Telecommunications
Transportation
Real Estate
Media and Entertainment
Relevant Teams
Human Resources
Finance
Legal
Operations
Sales
Marketing
Information Technology
Research and Development
Customer Service
Production
Quality Assurance
Business Development
Administration
Compliance
Strategy
Relevant Roles
Chief Executive Officer
General Manager
Department Manager
Senior Executive
Administrative Assistant
HR Manager
Finance Manager
Sales Representative
Technical Specialist
Project Manager
Operations Manager
Marketing Executive
Customer Service Representative
Research Analyst
Software Developer
Account Manager
Legal Counsel
Production Supervisor
Quality Control Inspector
Business Development Manager
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