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Non Fixed Term Contract Template for Saudi Arabia

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Non Fixed Term Contract

"I need a Non Fixed Term Contract for a senior software developer position in our Riyadh office, starting March 2025, with remote work provisions and specific IP protection clauses for our technology company."

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What is a Non Fixed Term Contract?

This Non Fixed Term Contract template is designed for use in Saudi Arabia when establishing permanent employment relationships without a specified end date. It complies with the Saudi Labor Law (Royal Decree No. M/51) and related regulations, incorporating mandatory provisions for employment contracts in the Kingdom. The document is typically used for permanent positions where the employment relationship is intended to continue indefinitely, subject to termination provisions under Saudi law. It includes essential terms such as compensation, benefits, working hours, leave entitlements, and end-of-service benefits, while ensuring compliance with Saudization requirements, GOSI regulations, and the Wage Protection System. The contract serves as a foundational document for establishing clear employment terms while maintaining flexibility for long-term employment relationships.

What sections should be included in a Non Fixed Term Contract?

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers

2. Background: Brief context of the employment relationship and agreement purpose

3. Definitions: Key terms used throughout the contract

4. Appointment and Term: Job title, employment status, and confirmation of non-fixed term nature of contract

5. Duties and Responsibilities: Detailed description of the employee's role, responsibilities, and reporting lines

6. Place of Work: Primary workplace location and possibility of transfer or travel

7. Working Hours: Standard working hours, breaks, and overtime provisions as per Saudi Labor Law

8. Remuneration and Benefits: Base salary, allowances, and statutory benefits including GOSI

9. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements

10. Confidentiality: Protection of company confidential information and trade secrets

11. Termination: Notice periods and grounds for contract termination as per Saudi Labor Law

12. End of Service Benefits: Calculation and payment of end of service gratuity

13. Governing Law: Confirmation of Saudi Labor Law application and dispute reֱ

What sections are optional to include in a Non Fixed Term Contract?

1. Probationary Period: Optional 90-day probation period clause, if applicable to the role

2. Non-Competition: Post-employment restrictions, if relevant to senior or technical positions

3. Intellectual Property: IP rights assignment for roles involving creative or technical work

4. Company Policies: Reference to specific company policies, if extensive policies exist

5. Housing Allowance: Specific terms for housing benefits, if provided

6. Transportation Allowance: Specific terms for transportation benefits, if provided

7. Commission Structure: For sales or commission-based roles

8. Remote Work Provisions: For positions allowing work from home or remote locations

What schedules should be included in a Non Fixed Term Contract?

1. Schedule 1 - Job Description: Detailed breakdown of job responsibilities and requirements

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components and benefits

3. Schedule 3 - Company Policies: Key company policies and procedures referenced in the contract

4. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

5. Appendix B - Benefits Summary: Summary of all employment benefits and eligibility criteria

Authors

Alex Denne

Head of Growth (Open Source Law) @ ֱ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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