Saudi Arabia Employment Guide

Essential Elements of Saudi Arabian Employment Contracts

Employment contracts in Saudi Arabia must be drafted in Arabic, though bilingual versions are permissible. Both parties are required to execute the agreement through the official government portal. Following the initial contract signing, a supplementary agreement is necessary to address additional terms.

• The primary government-filed document is used for visa processing, typically completed via the QIWA platform.
• Supplementary agreements cover provisions not included in the standard contract, such as non-compete clauses and data privacy policies.

Every employment contract must explicitly include the following components:

• Full names of employer and employee
• Official commencement date
• Employment term (with a maximum duration of three years for all contracts)
• Detailed job description and responsibilities
• Clear termination conditions and procedures

Important considerations for different employee categories:

• Visa-holding employees: Contracts typically align with visa validity (1 year) but can extend up to 3 years, requiring annual visa renewal.
• Saudi nationals: Fixed-term contracts that are renewed automatically convert to indefinite-term agreements under local law.

Organizations like SailGlobal should note that part-time employment contracts are not currently supported within the Saudi Arabian regulatory framework.

Understanding the Probation Period Framework

Saudi labor regulations establish a standard 90-day probation period, extendable to a maximum of 180 days. During this trial period, employment contracts may be terminated without advance notice requirements from either party.

Practical Implementation Insights

International companies often encounter challenges with contract localization. For instance, a European technology firm recently faced compliance issues by using English-only contracts, resulting in processing delays. SailGlobal's approach of utilizing properly certified bilingual contracts has proven effective in streamlining the onboarding process while maintaining full legal compliance.

Best Practices for Contract Management

Establishing clear contract protocols is essential for successful operations in Saudi Arabia. Regular audits of contract templates, maintaining updated supplementary agreements, and ensuring all documents are properly filed through official channels help mitigate legal risks and create stable employer-employee relationships.