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The Continuous Contract of Employment is the primary document establishing an ongoing employment relationship in Saudi Arabia. This document is essential when hiring employees on an indefinite-term basis, which is the default employment arrangement under Saudi Labor Law unless specific conditions for fixed-term contracts are met. The contract must comply with Royal Decree No. M/51 and associated regulations, including provisions for working hours, leave entitlements, end of service benefits, and termination procedures. It's particularly important in ensuring compliance with local labor regulations, including Saudization requirements, social insurance obligations, and the Wage Protection System. The document serves as a comprehensive reference point for both employer and employee, detailing all aspects of the employment relationship from commencement to potential termination.

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 relevant pre-employment discussions

3. Definitions: Key terms used throughout the contract, ensuring clear interpretation

4. Appointment and Term: Position title, employment start date, and confirmation of continuous/indefinite term nature of contract

5. Duties and Responsibilities: Detailed description of the employee's role, responsibilities, and reporting lines

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

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

8. Probationary Period: Duration and terms of the probationary period (if applicable, up to 90 days under Saudi law)

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

10. Annual Leave: Annual leave entitlement and rules for requesting/taking leave

11. Sick Leave: Sick leave entitlements and notification procedures

12. Other Leave Entitlements: Other statutory leaves including Hajj leave, maternity leave, and compassionate leave

13. Medical Insurance: Health insurance coverage as required by Saudi law

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

15. Termination: Notice periods and grounds for termination as per Saudi Labor Law

16. Confidentiality: Protection of company confidential information

17. Governing Law: Confirmation of Saudi Labor Law application and dispute resolution procedures