The Labor Law clearly states that the employment contract must be in writing.
From a procedural perspective, employment contracts are required for all non-GCC national employees to obtain their visas. 2 copies of the employment contract should be made – 1 copy to be held by each party.
The employer is required to issue the template contract provided by the Ministry of Human Resource and Social Development (HRSD or the Ministry) through its Qiwa portal which contains a minimum of the name of the employer and registered address; the name, nationality and address of the employee; identification of the employee (ie, national identity card numbers for nationals or foreign passport numbers for non-nationals); the employee's salary and any allowances; a description of the employee's duties; identification of the place where the work will be performed; the date of appointment and commencement of contract; length of the contract, if applicable; annual leave; termination rights; governing law and forum (which must be the KSA); and rules pertaining to employee’s conduct, among others. Both parties may, within limitations, incorporate additional conditions and terms that do not contradict the provisions of the Labor Law.
Employers are at liberty to agree to a separate internal company contract. Most employers supplement the Qiwa contract with an internal contract which contains comprehensive and detailed terms and conditions which cannot be incorporated into the Qiwa contract.
A probationary period of up to 90 days may be agreed upon for any new employee. The probationary period may be extended, subject to the employee's written consent, but cannot exceed 180 days. During this probationary period, both parties – unless such option is restricted to one of them – may terminate the contract for any or no reason, and the employee has no right to contest the termination or to require the employer to re-instate them, nor any right to end-of-service gratuity (EOSG). The probationary period and its term must be included in the contract. An employee may be made to serve only 1 probationary period for the same job position, unless the parties agree otherwise, or where the 2nd probationary period is for a different position or 6 months minimum have passed since the end of the previous employment relationship.
Under the Labor Law, employers must have in place a set of work regulations, which must be prominently displayed in the workplace. Such regulations must be in Arabic and should generally follow HRSD’s standard form template. The Ministry regulations are extensive and include provisions with respect to various aspects of work, including health and safety as well as disciplinary and grievance procedures.
Employers may include additional provisions in the regulations, provided they are in line with the Labor Law. Any additional provisions must be approved by the Ministry, which can take up to 60 days or more to approve and must be issued through a licensed attorney.
No requirement to lodge employment contracts or policies with, or get approval from, any 3rd party other than HRSD.
Last modified 26 Jun 2024
