Employment contract template for Saudi Arabia (Qiwa-ready)

Employment Contract

This contract is made on [DD/MM/YYYY] between:

First party (the Employer): [Company name], commercial registration number [CR number], unified number [Unified establishment number], address [Address], represented by [Name of the authorised signatory] as [Job title].

Second party (the Employee): [Employee full name], a [Nationality] national holding [National ID / Iqama / Passport] number [Number], date of birth [DD/MM/YYYY], address [Address], mobile [Mobile number], e-mail [E-mail].

The two parties, having legal capacity to contract, agree as follows.

1. Job
The Employee is employed as [Job title] in [Department], reporting to [Manager’s title]. The Employee’s main duties are set out in the job description attached to this contract.

2. Place of work
The Employee will work at [City and work location]. The Employer may not transfer the Employee to another place of work that requires a change of residence except as the Labour Law allows.

3. Contract type and term
This contract is [open-ended / fixed-term for a period of (number) months/years, ending on (DD/MM/YYYY)]. [For a fixed-term contract: it may be renewed by written agreement of both parties.]

4. Start date
The Employee will start work on [DD/MM/YYYY].

5. Probation
The Employee is subject to a probation period of [number] days from the start date, not exceeding 180 days in total. Leave days that the Implementing Regulations exclude are not counted. Either party may end this contract during probation without an end-of-service award or compensation.

6. Wage and allowances
The Employer will pay the Employee a monthly wage made up of:
Basic wage: [Amount] SAR
Housing allowance: [Amount] SAR [or: housing provided by the Employer]
Transport allowance: [Amount] SAR [or: transport provided by the Employer]
Other allowances: [Name and amount] SAR
Total monthly wage: [Amount] SAR
The wage is paid in Saudi riyals into the Employee’s bank account on [day] of each Gregorian month.

7. Working hours and rest
Working hours are [number] hours a day and [number] hours a week, within the limits of the Labour Law of 8 hours a day and 48 hours a week. In Ramadan, working hours for Muslim employees are no more than 6 hours a day and 36 hours a week. The Employee will have rest, prayer and meal breaks of at least 30 minutes so that no more than 5 consecutive hours are worked without a break. The weekly rest day is [day], with full pay. Overtime is paid at the hourly wage plus 50% of the basic hourly wage, or compensated with paid time off where the Employee agrees, as the Labour Law provides.

8. Annual leave
The Employee is entitled to paid annual leave of [21 or more] days a year, rising to [30 or more] days after five consecutive years of service with the Employer, paid in advance. The Employer sets the leave dates according to the needs of the work and notifies the Employee at least 30 days in advance. Other leave (sick, Hajj, marriage, bereavement, birth, maternity and exam leave) is granted as the Labour Law provides.

9. Medical insurance and social insurance
The Employer will provide medical insurance for the Employee [and eligible family members] under the cooperative health insurance rules, and will register the Employee with the General Organization for Social Insurance.

10. Notice and ending the contract
[For an open-ended contract:] Either party may end this contract for a valid reason by giving the other written notice of at least [30] days when the Employee ends it and at least [60] days when the Employer ends it. A party that does not observe the notice period shall pay the other party compensation equal to the Employee’s wage for the notice period. [For a fixed-term contract:] The contract ends when its term ends unless renewed.

11. End-of-service award
When this contract ends, the Employee is entitled to an end-of-service award calculated on the last wage, under Articles 84 to 88 of the Labour Law, according to the length of service and the reason the contract ended.

12. Confidentiality
The Employee will not disclose the Employer’s trade secrets, client information or other confidential information during employment or after it ends, and will return all documents, devices and property of the Employer when the contract ends.

13. Work regulations
The Employee has read the Employer’s work regulations and agrees to comply with them. Any penalty is applied only as those regulations and the Labour Law provide.

14. Governing law and disputes
This contract is governed by the Saudi Labour Law, its Implementing Regulations and the decisions issued under it. Anything not covered here follows the Labour Law. Disputes go first to amicable settlement through the Ministry of Human Resources and Social Development and then to the labour courts.

15. Language and copies
This contract is made in Arabic and English in two copies, one for each party. If the two texts differ, the Arabic text prevails.

First party (Employer)
Name: [Name of the authorised signatory]
Title: [Job title]
Signature and stamp: [Signature and company stamp]

Second party (Employee)
Name: [Employee full name]
Signature: [Signature]