Employment contract Term & ConditionsGuides in Saudi Arabia 2022

Employment Contract in Saudi Arabia as per Saudi Law

A written agreement between a specific employee and an employer is known as an employment contract in Saudi Arabia. It outlines the parties’ obligations as well as their rights.

Non-Saudi nationals must have written employment contracts with a fixed duration. Contracts will end when the work permit expires unless otherwise stated.

Must Read: Termination as per Saudi Labor law

Terms for Employment Contract in Saudi Arabia

Terms for Employment Contract in Saudi Arabia
  • Each party must sign a duplicate copy of each employment contract.
  • A non-Saudi employee’s work permit will count as the duration of their employment contract if their employment contract does not specify a defined term.
  • Contracts that aren’t written are still valid. The employee, in these cases, can only support an agreement and any related rights. Any party may request a written contract at any time. 
  • Employees of public institutions and government agencies will have an “in loco” contract with their appointment decisions.

How to Open a Zero Balance Account in UAE

A standard form for employment contracts must follow the Ministry’s guidelines. A party can include additional clauses if they do not violate the labor law, its rules, or executive decisions.

Things Included in Employment Contract

Following things are must in an employment contract:

  1. Employers’ name and place
  2. Residence Address
  3. Necessary documents for the verification of worker’s identity
  4. Nationality and name of a worker
  5. Place and work type
  6. Agreed-upon salaries, bonuses, and benefits
  7. Joining Date

Probation Period

The employment contract must specifically and clearly state that the employee is on probation and that the probationary period will not exceed 90 days. Employees and employers may extend the probationary period by writing if it does not exceed 180 days. The probationary period does not include holidays such as Eid al-Fitr and Eid al-Adha or sick days. The contract may be terminated by either party during this period, except when it expressly states otherwise.

While on probation, a worker cannot work for the same employer more than once. Both parties are not entitled to compensation if the contract expires during the probationary period, and the employee is not entitled to end-of-service pay.

Employment Contract Renewal

Employment Contract Renewal

A fixed-term employment contract will end when it expires. The contract will be renewed for an unspecified period if both parties keep enforcing it. For non-Saudis, see Article 37 of the Labor Law. Fixed-term contracts are renewed for the agreed-upon term if they include an option to continue.

Read More: How to calculate overtime in KSA?

Assume that both parties continue to fulfill the contract after it has been renewed three times in a row or until the original term, including the renewal period, has expired. If that is the case, the agreement will be changed into a contract with an indefinite duration.

Duties of an Employee

Duties of an Employee
  • completing and perfecting tasks
  • obeying authorities
  • obeying the law and the rules
  • not revealing trade secrets
  • Observe working hours


Make sure to read the employment contract thoroughly before you proceed with any other decision. Ensure all the things stated in this article are included in the employment.

We hope all your confusion is cleared and this article was helpful to you.

Leave a Reply

Your email address will not be published. Required fields are marked *