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Contract For One Year Employment Template for Saudi Arabia

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Key Requirements PROMPT example:

Contract For One Year Employment

"I need a Contract For One Year Employment for a senior software developer position in Riyadh, starting March 1, 2025, with remote work provisions and intellectual property clauses for a technology company that handles sensitive client data."

What is a Contract For One Year Employment?

The Contract For One Year Employment is a standardized agreement designed for use in Saudi Arabia when establishing fixed-term employment relationships. This document type is particularly relevant for organizations seeking to hire employees for specific projects, temporary positions, or when testing new market opportunities. It must comply with Saudi Labor Law (Royal Decree No. M/51) and related regulations, including GOSI requirements and Saudization policies. The contract includes all mandatory employment terms required by Saudi law while providing flexibility to accommodate various roles and industries. It's commonly used for both Saudi nationals and expatriate workers (subject to work permit requirements) and includes provisions for probationary periods, statutory benefits, and end of service calculations specific to fixed-term contracts under Saudi legislation.

What sections should be included in a Contract For One Year Employment?

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 purpose of the agreement

3. Definitions: Key terms used throughout the contract

4. Term of Employment: Specification of the one-year duration, start date, and any probationary period

5. Position and Duties: Job title, role description, and primary responsibilities

6. Work Location and Hours: Primary workplace and standard working hours as per Saudi Labor Law

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

8. Leave Entitlements: Annual leave, sick leave, and other statutory leave rights

9. Confidentiality and Data Protection: Obligations regarding company information and data security

10. Company Policies: Adherence to employer's policies and procedures

11. Termination: Grounds and procedures for contract termination as per Saudi Labor Law

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

13. Governing Law: Confirmation of Saudi Law application and dispute resolution

14. Entire Agreement: Standard boilerplate confirming this is the complete agreement

What sections are optional to include in a Contract For One Year Employment?

1. Mobility Clause: Required if employee may need to work at different locations

2. Non-Competition: Restrictions on post-employment competition, if applicable to position

3. Housing Allowance: If separate housing allowance is provided beyond basic salary

4. Transportation Allowance: If separate transportation allowance is provided

5. Commission Structure: For sales or commission-based positions

6. Performance Bonus: If bonus schemes are applicable

7. Medical Insurance: If additional private medical insurance is provided beyond statutory requirements

8. Intellectual Property Rights: For positions involving creative or technical work

9. Remote Working Provisions: If remote work is permitted occasionally or regularly

What schedules should be included in a Contract For One Year Employment?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and reporting lines

2. Schedule 2 - Compensation Details: Breakdown of salary components and payment schedule

3. Schedule 3 - Benefits Summary: Detailed list of all benefits and allowances

4. Schedule 4 - Company Policies: Key company policies that form part of the employment terms

5. Appendix A - Code of Conduct: Company's code of conduct and ethical standards

6. Appendix B - Leave Policy: Detailed leave policies and procedures

7. Appendix C - Performance Evaluation Criteria: If applicable, performance measurement criteria and review process

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

























Clauses




































Relevant Industries

Banking & Financial Services

Healthcare

Information Technology

Manufacturing

Retail

Education

Construction

Professional Services

Telecommunications

Energy & Resources

Real Estate

Hospitality

Transportation & Logistics

Media & Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Administration

Compliance

Recruitment

Payroll

Employee Relations

Relevant Roles

General Manager

Project Manager

Software Developer

Sales Representative

Administrative Assistant

Financial Analyst

HR Coordinator

Marketing Specialist

Operations Manager

Research Analyst

Technical Support Engineer

Business Development Manager

Account Executive

Customer Service Representative

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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