Everything You Need to Know About Employment Contracts in Saudi Arabia
An employment contract is the foundation that links an employee with their employer. In this article, we explain the types of employment contracts under the Saudi Labor Law and how to ensure your rights are protected before you sign.
Types of Employment Contracts in Saudi Arabia
The Saudi Labor Law categorizes employment contracts into two main types:
1. Fixed-Term Contract:
This contract has specific start and end dates. The maximum duration is 5 years, and it can be renewed. If the employee continues working after the contract expires, it automatically converts into an indefinite-term contract.
2. Indefinite-Term Contract:
There is no specific end date; it continues until one of the parties decides to terminate it in accordance with the law.
Essential Elements
Any employment contract must include: the names of both parties, the start date, the type of contract, salary and allowances, job description, working hours, annual leave (21 days), probation period (90 days), and notice period.
Contract Registration on Qiwa
The Qiwa platform, operated by the Ministry of Human Resources and Social Development, is the official platform for registering employment contracts. Employers are required to complete the registration within 3 days.
Probation Period
The maximum probation period is 90 days and can be extended once. Either party has the right to terminate the contract without notice during this period.
Contract Termination
Fixed-Term Contract: Compensation equivalent to the wages for the remaining period. Indefinite-Term Contract: 30 days’ notice for monthly-salaried employees, and 15 days for weekly-salaried employees.
Frequently Asked Questions
Q: Is an oral contract permissible?
A: No, it must be in writing and in Arabic.
Q: Can the employer change my salary?
A: No, except with your written consent.
Q: What is the difference in end-of-service benefits between the two contract types?
A: Both are entitled to an end-of-service benefit. The difference lies in the notice period.
Q: Can I work for another employer?
A: Full-time employment prohibits working for another employer without permission.
Q: How can I verify that my contract is registered?
A: Log in to Qiwa and check using your ID number.
