Non Fixed Term Employment Contract Template for Saudi Arabia
Generate a bespoke document
What is a Non Fixed Term Employment Contract?
The Non Fixed Term Employment Contract serves as the primary employment agreement for permanent positions in Saudi Arabia, establishing an ongoing employment relationship without a predetermined end date. This document is essential for companies operating in Saudi Arabia who wish to hire employees on a permanent basis, ensuring compliance with the Saudi Labor Law and related regulations. It includes mandatory provisions regarding probation periods, working hours, leave entitlements, and end of service benefits, while also addressing specific requirements for both Saudi and non-Saudi employees. The contract must be drafted in Arabic (with optional English translation) and registered with the Ministry of Human Resources and Social Development. It provides the foundation for long-term employment relationships while protecting both employer and employee rights under Saudi law.
Frequently Asked Questions
Is a non fixed term employment contract legally binding in Saudi Arabia?
Yes, a non fixed term employment contract is legally binding in Saudi Arabia when it complies with Saudi Labor Law (Royal Decree No. M/51). The contract becomes enforceable once signed by both parties and must include mandatory provisions such as job description, salary, working hours, and leave entitlements as required by Saudi labor regulations.
How does a non fixed term contract differ from a fixed term employment contract in Saudi Arabia?
A non fixed term contract establishes permanent employment without a predetermined end date, while a fixed term contract has a specific duration (maximum 4 years under Saudi law). Non fixed term contracts offer greater job security and require different termination procedures, including notice periods and end of service benefits calculations.
Can an employer terminate a non fixed term employment contract in Saudi Arabia without cause?
Under Saudi Labor Law, employers can terminate non fixed term contracts but must provide proper notice (30-60 days depending on service length) and valid justification. Arbitrary dismissal may result in compensation requirements, and employees are entitled to end of service benefits based on their length of service.
How long does it take to prepare a non fixed term employment contract in Saudi Arabia?
A non fixed term employment contract can typically be prepared within 1-3 business days using a proper template. Additional time may be needed for legal review, Arabic translation if required, and ensuring compliance with specific industry regulations or company policies under Saudi Labor Law.
Must a non fixed term employment contract be written in Arabic in Saudi Arabia?
Yes, employment contracts in Saudi Arabia must be in Arabic or include an official Arabic translation to be legally enforceable. While bilingual contracts are common in international companies, the Arabic version takes precedence in legal disputes under Saudi Labor Law.
Can foreign employees use non fixed term contracts for Saudi work visas?
Yes, non fixed term employment contracts are acceptable for Saudi work visa applications and iqama renewals. However, the contract must comply with Saudi Labor Law requirements and include specific provisions for foreign workers, such as repatriation clauses and benefits as mandated by immigration regulations.
Are there mandatory probation period requirements for non fixed term contracts in Saudi Arabia?
Saudi Labor Law allows probation periods of up to 180 days (6 months) for non fixed term contracts, extendable to 360 days by mutual agreement. During probation, either party can terminate the contract with shorter notice periods, and specific probation terms must be clearly stated in the employment contract.
About the Non Fixed Term Employment Contract
A Non Fixed Term Employment Contract is the standard employment agreement for permanent positions in Saudi Arabia, creating an ongoing employment relationship without a specified end date. Under Saudi Labor Law (Royal Decree No. M/51), this contract type provides maximum job security for employees while giving employers the flexibility to maintain long-term workforce stability. You'll need this document whenever hiring employees for permanent positions in Saudi Arabia, whether they are Saudi nationals or expatriate workers.
When do you need this document?
You require a Non Fixed Term Employment Contract when establishing permanent employment relationships in Saudi Arabia. This includes hiring Saudi nationals for full-time positions, recruiting expatriate workers for ongoing roles, expanding your workforce with permanent staff, or converting fixed-term contracts to permanent arrangements. The document is essential for companies seeking to build stable teams while ensuring compliance with Saudi employment regulations and Nitaqat program requirements for Saudization quotas.
Key legal considerations
Several critical clauses must be included to ensure legal compliance and protect both parties. The probation period cannot exceed 180 days and must clearly define evaluation criteria and termination procedures. Working hours must comply with Saudi Labor Law limits of 8 hours daily and 48 hours weekly, with specific provisions for Ramadan. Leave entitlements must include annual leave (minimum 21 days), sick leave, and maternity leave as mandated by law. End of service benefits calculations must follow the statutory formula based on years of service. Termination clauses must distinguish between termination with and without cause, including notice periods and severance pay obligations. The contract must also address social insurance contributions to GOSI and compliance with Wage Protection System requirements for salary payments through approved banks.
Legal requirements in Saudi Arabia
Saudi Labor Law mandates that all employment contracts be written in Arabic, though bilingual versions are permitted for clarity. The contract must be registered with the Ministry of Human Resources and Social Development within 60 days of commencement. For expatriate employees, the contract must align with work permit conditions and specify the employee's profession as listed in their iqama. Employers must ensure compliance with Nitaqat program requirements, maintaining appropriate ratios of Saudi to non-Saudi employees based on company size and sector. Social insurance registration with GOSI is mandatory for all employees, with contributions calculated on basic salary. The contract must specify that wages will be paid through the Wage Protection System via approved local banks. Additionally, any amendments to the contract must be documented in writing and registered with relevant authorities to maintain legal validity.
GOVERNING LAW
Applicable law
This Non Fixed Term Employment Contract is drafted to comply with Saudi Arabia law. Key legislation includes:
Explore 208,390+ legal templates
Explore 208,390+ legal templates
Genie's Security Promise
Genie is the safest place to draft. Here's how we prioritise your privacy and security.
Your data is private:
We do not train on your data; Genie's AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it