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Revised Employment Contract for Saudi Arabia

Revised Employment Contract Template for Saudi Arabia

A comprehensive legal document governed by Saudi Arabian law that revises and updates the terms of employment between an employer and employee. This contract incorporates recent amendments to the Saudi Labor Law, including the 2021 reforms, and ensures compliance with current regulatory requirements such as Saudization quotas, social insurance obligations, and workplace safety standards. The document details all aspects of the employment relationship, including compensation, benefits, working hours, leave entitlements, and termination procedures, while adhering to both Shariah principles and modern business practices in Saudi Arabia.

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What is a Revised Employment Contract?

The Revised Employment Contract serves as a crucial document for updating and formalizing changes to existing employment relationships in Saudi Arabia. This document becomes necessary when there are significant changes to employment terms, updates in labor regulations, or organizational restructuring that requires modification of existing employment contracts. The contract ensures compliance with the latest Saudi Labor Law amendments, including the 2021 reforms, while incorporating any company-specific updates to terms and conditions. It covers all essential aspects of employment such as revised compensation structures, updated job responsibilities, modified working arrangements, and any new company policies, while maintaining alignment with Saudi Arabian legal requirements and Shariah principles. This document is particularly important for maintaining clear, legally compliant employment relationships and protecting both employer and employee interests in the Saudi Arabian jurisdiction.

What sections should be included in a Revised Employment Contract?

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 revised contract

3. Definitions: Key terms used throughout the contract defined for clarity and legal certainty

4. Position and Duties: Job title, role description, responsibilities, and reporting relationships

5. Term and Probation: Contract duration (fixed/unlimited term) and probation period details as per Saudi Labor Law

6. Work Location and Hours: Primary workplace location and standard working hours, including provisions for Ramadan timing

7. Compensation and Benefits: Base salary, allowances, and mandatory benefits as per Saudi Labor Law

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

9. Social Insurance and Medical Care: GOSI registration and medical insurance provisions as required by law

10. Confidentiality and Data Protection: Obligations regarding company information and personal data handling

11. Non-Competition and Intellectual Property: Post-employment restrictions and ownership of work products

12. Code of Conduct: Expected behavior, dress code, and compliance with company policies

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

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

15. Governing Law and Jurisdiction: Confirmation of Saudi Law application and dispute resolution procedures

What sections are optional to include in a Revised Employment Contract?

1. Remote Work Provisions: Include when employee is permitted to work remotely, detailing specific arrangements and conditions

2. Commission Structure: Include for sales positions or roles with variable compensation components

3. International Travel: Include for roles requiring regular international travel, detailing allowances and arrangements

4. Training Requirements: Include when specific training or qualifications are required for the role

5. Housing Allowance Terms: Include when providing specific housing benefits beyond standard allowances

6. Transportation Arrangements: Include when providing company vehicles or specific transportation benefits

7. Shift Work Provisions: Include for positions involving shift work or irregular hours

8. Performance Bonus Scheme: Include when offering performance-based bonuses or incentives

What schedules should be included in a Revised Employment Contract?

1. Schedule 1 - Detailed Job Description: Comprehensive description of role, responsibilities, and performance expectations

2. Schedule 2 - Compensation Structure: 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 - Confidentiality Agreement: Detailed confidentiality obligations and protected information

5. Schedule 5 - Code of Conduct: Detailed behavioral expectations and compliance requirements

6. Appendix A - Leave Policy: Detailed procedures for requesting and taking various types of leave

7. Appendix B - IT and Communications Policy: Rules regarding use of company IT systems and communication tools

8. Appendix C - Employee Handbook Reference: Reference to relevant sections of the employee handbook that form part of the contract

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

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions






































Clauses






































Relevant Industries

Banking & Financial Services

Technology

Manufacturing

Healthcare

Education

Retail

Construction

Oil & Gas

Telecommunications

Professional Services

Hospitality

Transportation & Logistics

Real Estate

Media & Entertainment

Public Sector

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research & Development

Customer Service

Administration

Production

Quality Assurance

Compliance

Risk Management

Corporate Communications

Relevant Roles

Chief Executive Officer

Managing Director

Department Manager

Senior Executive

Professional Staff

Technical Specialist

Administrative Officer

Sales Representative

Operations Manager

Human Resources Manager

Financial Analyst

Project Manager

Research Scientist

Software Developer

Marketing Specialist

Customer Service Representative

Legal Counsel

Production Supervisor

Account Manager

Medical Professional

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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