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Workers Agreement for Saudi Arabia

Workers Agreement Template for Saudi Arabia

A comprehensive employment contract compliant with Saudi Arabian labor laws, establishing the terms and conditions of employment between an employer and employee. This document incorporates mandatory provisions required by Saudi Labor Law (Royal Decree No. M/51), including working hours, compensation, benefits, and end of service entitlements. It ensures compliance with local regulations such as Saudization requirements, Wage Protection System (WPS), and social insurance obligations while protecting both employer and employee rights under Saudi jurisdiction.

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What is a Workers Agreement?

The Workers Agreement is a fundamental legal document used in Saudi Arabia to establish and regulate employment relationships in accordance with local labor laws. This agreement is essential for both Saudi nationals and expatriate workers, requiring careful alignment with Saudi Labor Law, Saudization policies, and related regulations. It serves as the primary reference document for employment terms, including compensation, benefits, working hours, and termination conditions. The agreement must comply with mandatory requirements such as the Wage Protection System (WPS) and GOSI regulations, while also addressing specific sector requirements and company policies. This document is crucial for maintaining legal compliance and protecting both employer and employee rights in the Saudi Arabian jurisdiction.

What sections should be included in a Workers Agreement?

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

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

5. Term of Employment: Duration of employment (fixed-term or unlimited) and probation period details

6. Working Hours and Location: Standard working hours, overtime provisions, and primary work location

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

8. Leave Entitlements: Annual leave, sick leave, and other permitted absences as per Saudi Labor Law

9. Benefits: Health insurance, GOSI coverage, and other employment benefits

10. Confidentiality and Data Protection: Protection of employer's confidential information and trade secrets

11. Non-Competition: Post-employment restrictions on competing activities

12. Termination: Grounds and procedures for contract termination

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

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

What sections are optional to include in a Workers Agreement?

1. Mobility Clause: Required when the role may involve travel or relocation within Saudi Arabia

2. Housing Allowance: Include when providing accommodation or housing allowance

3. Transportation Allowance: Include when providing transportation benefits

4. Performance Bonus: Include when offering performance-based incentives

5. Training Requirements: Include for roles requiring specific training or certifications

6. Intellectual Property Rights: Include for technical or creative roles involving IP creation

7. Secondment Provisions: Include if employee may be seconded to other group companies

8. Religious Observance: Include specific provisions for religious break times and obligations

What schedules should be included in a Workers Agreement?

1. Job Description: Detailed description of roles, responsibilities, and reporting lines

2. Salary Structure: Breakdown of basic salary and allowances

3. Company Policies: Key workplace policies and procedures

4. Benefits Package: Detailed description of all benefits and eligibility criteria

5. Code of Conduct: Expected behavioral standards and workplace ethics

6. Safety Procedures: Workplace safety guidelines and procedures

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

Manufacturing

Construction

Information Technology

Healthcare

Financial Services

Retail

Education

Oil and Gas

Hospitality

Professional Services

Telecommunications

Transportation and Logistics

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Administration

Customer Service

Research and Development

Production

Quality Assurance

Relevant Roles

Chief Executive Officer

General Manager

Department Manager

Software Engineer

Accountant

Human Resources Specialist

Sales Representative

Administrative Assistant

Project Manager

Technical Supervisor

Medical Professional

Customer Service Representative

Operations Manager

Research Analyst

Marketing 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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