This Indefinite Employment Contract template is designed for use in establishing permanent employment relationships within Saudi Arabia's jurisdiction. It serves as a fundamental document for formalizing employment arrangements that have no fixed end date, incorporating all mandatory requirements under the Saudi Labor Law and related regulations. The contract is essential for companies operating in Saudi Arabia who are hiring permanent employees, whether Saudi nationals or expatriates. It includes provisions for all critical aspects of the employment relationship, from basic terms to complex regulatory requirements such as Saudization quotas and GOSI registration. The document reflects recent regulatory updates and reforms under Saudi Vision 2030, ensuring modern employment practices while maintaining legal compliance.
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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 reference to any preceding arrangements
3. Definitions: Key terms used throughout the contract
4. Appointment and Job Description: Position title, duties, responsibilities, and reporting relationships
5. Commencement and Duration: Start date and confirmation of indefinite term nature of the contract
6. Probation Period: Duration and terms of the probationary period as per Saudi Labor Law
7. Working Hours and Location: Regular working hours, days, and primary work location
8. Remuneration and Benefits: Base salary, allowances, and other benefits including housing, transportation, and medical insurance
9. Annual Leave and Public Holidays: Leave entitlements and public holiday provisions
10. Sick Leave: Sick leave entitlements and notification procedures
11. Obligations and Duties: Employee's general duties, confidentiality, and compliance requirements
12. Termination: Grounds and procedures for contract termination by either party
13. End of Service Benefits: Calculation and payment of end of service benefits
14. Governing Law and Jurisdiction: Confirmation of Saudi Law application and dispute resolution procedures
1. Non-Competition: Restrictions on post-employment competition, used for senior positions or roles with access to sensitive information
2. Intellectual Property Rights: IP ownership provisions, relevant for creative or technical roles
3. Remote Work Provisions: Specific terms for remote working arrangements, if applicable
4. Commission Structure: Details of commission-based compensation, used for sales roles
5. International Travel: Terms for international travel and associated benefits, for roles requiring travel
6. Training Obligations: Specific training requirements and associated commitments, for roles requiring specialized training
7. Language Requirements: Language proficiency requirements and testing, for roles requiring specific language skills
8. Shift Work Provisions: Special terms for shift-based work patterns, used for roles involving shift work
1. Schedule 1 - Detailed Job Description: Comprehensive description of role, responsibilities, and performance expectations
2. Schedule 2 - Compensation Details: Detailed 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 - Medical Insurance Coverage: Details of medical insurance benefits and coverage
5. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines
6. Appendix B - Safety Procedures: Workplace safety guidelines and procedures
7. Appendix C - IT Usage Policy: Rules and guidelines for use of company IT systems and equipment
Authors
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Healthcare
Education
Retail
Construction
Energy
Telecommunications
Professional Services
Hospitality
Transportation
Real Estate
Media and Entertainment
Relevant Teams
Human Resources
Legal
Finance
Operations
Administration
Compliance
Recruitment
Compensation and Benefits
Employee Relations
Training and Development
Relevant Roles
Chief Executive Officer
Department Manager
Senior Engineer
Marketing Specialist
Financial Analyst
Human Resources Officer
Sales Representative
Project Manager
Administrative Assistant
Technical Support Specialist
Research Analyst
Operations Manager
Customer Service Representative
Business Development Manager
Software Developer
Account Manager
Legal Counsel
Quality Assurance Specialist
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