An employment contract in KSA according to Labour Law is a contract undertaken between an employer and employee where the subject works under the supervision of the former for an agreed-on salary.
An employee is a natural person who works under the supervision or management of the employer for an agreed-upon salary even regardless if they are in direct control
An employer is a corporate person who employs one or more workers to work for them.
Both parties should write and duplicate the contract they reach and retain one copy each.
When a written contract is absent, the employer should be able to establish whatever proof necessary to establish the existence of the contract and entitlements that may arise from it.
Contracts such as those involving part-time workers and foreign national employees should be in the form of a written contract.
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Employment Contract in KSA as per Labour Law – Duties
A standard employment contract has been provided by The Ministry which is in accordance with the Labour Law which includes:
1. The name of the employer and the address.
2. The name of the employee, number of identification, and nationality.
3. The commencement date of employment.
4. The salary they agreed upon.
5. Status of the contract either fixed term or its duration.
6. The location and the type of work.
First of all, the employer should issue the employment files, instructions, and records to the employees in Arabic, and the employment contract should be in Arabic too. Moreover, in the case of a different language, Arabic should be more prevalent.
The employer and the employee apart from the contents of the standard employment contract, may decide to add any other contents provided they don’t contradict the Labour Law.
Any content that contradicts the Labour Laws or releases the employee’s rights provided it is more beneficial than the provision of the Laws is null and void.
However, upon agreement of the contract, the employers are required to upload all the contracts to GOSI online portal to check for authenticity.
The portal notifies the employees when the employers upload the contract so that they can confirm if the information fed in matches whatever they agreed upon.
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Duties of the employer
1. Not to employ workers without pay.
2. Forbid entry of illegal substances into the workplace.
3. Treat the employees with respect and in a way that does not affect their religion or their dignity.
4. Allow the employees time to carry out their statutory rights, without defecting their pay but they should do it in a way that does not interfere with the work progress.
5. Allow the related Authority to carry out any task related to Labour Law enforcement.
6. Not to retain employee’s pay without authorization of the Authority
Duties of the employees
1. Perform work given in accordance with the guidelines and terms of the contract as long as they do not conflict with public morality or the law and do not expose the workers to hazards.
2. Abide by the ethical norms of the work.
3. Undergo any medical examination prior to or during employment to ascertain there’s no presence of communicable ailments.
4. Extend any help or assistance required in case of any emergency or hazard that may be threatening the workplace or fellow workmates.
5. Take good care of the employer’s equipment, raw materials, and supplies placed in the employee’s custody.
6. Keep the employer’s industrial secrets where it’s likely to alter the employer’s interests.
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Types of Contracts and Employees
Employment contracts have a fixed term or indefinite for Saudi nationals, while foreign nationals have a fixed term. If the contract does not specify the term, the duration of residence is the term.
Fixed term contracts
A clause to this effect allows the employer and the employee to renew the contract. Consequently, the employee has continuous service with the employer in case of renewal.
The worker has an indefinite-term contract with the employer if the contract is renewed 3 times or the employee works for the employer for four years. This does not apply to foreign nationals.
Contracts are either full or part-time work
Part-Time contracts should state the number of working hours and must be in writing. Employees in this type of contract are covered only by certain provisions.
Varying the contract
It is only when the employer and the employee agree that the terms of the contract may be altered.
If the employer provides work that was not agreed upon without written consent, this entitles the employee to end the contract without notice.
Alternatively, in the case that an employer decides to relocate an employee to a different workplace, which leads to the worker changing residence, it is required that there should be written consent from the employee.
Termination as per KSA Labor Law
The employment contract in KSA may be terminated:
Without notice, if the employee:
- fails the medical examination.
- The employee attaining the age of; fifty years for the female and sixty years for the male employee’s retirement. This is unless both parties agree to continue with the contract past the retirement age.
- Mutual agreement between both parties.
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The employee may be dismissed by the employer without notice for:
- Assaulting and disrespecting management is one of the grounds for termination.
- Similarly, acts that infringe on integrity and honesty are also unacceptable.
- Furthermore, causing loss to the employer knowingly is a serious offense.
- Lastly, being absent from work for a period of ten consecutive days or for a period of twenty days in a year is a breach of contract.
- Disclosing the secrets of the company that affects the company.
- Use of artificial means to acquire the job.
- Using the company’s resources for personal interest.
- Not being able to perform the duties assigned.
- Unable to follow orders.
The worker may terminate the contract without notice if:
- The employer does not fulfill his duties
- The employee is given work that was not specified in the contract.
- The employer commits an immoral act or assaults the employee or the relatives.
- Employer exposes the employee to hazards without any protection or care.
- The employer is unjust to the employee or violates the contractual agreement.
Frequently Asked Questions
An employment contract in KSA is a legal document that regulates the relationship between an employer and an employee in the Kingdom of Saudi Arabia. It should include the essential details of the work, such as salary, duration, location, and responsibilities.
It should also comply with the Labor Law and the standard form issued by the Ministry of Labor and Social Development.
The employment contract in KSA is an important document that protects the rights and interests of both parties and ensures a smooth and productive work environment.
I am Saif. I am the founder and chief writer for his own website called KSA Expat Guide and a freelance writer and web developer for many other websites. I live in Saudi Arabia as an ex-pat. Love to research all about KSA. I use my spare time to learn new things, travel, and write about them, especially when it comes to technology and things from the past.