Everything you need to know about employment contracts in Saudi Arabia
An employment contract is the foundation that connects the employee to the employer. In this article, we explain the types of employment contracts under the Saudi Labor Law and how to ensure your rights before signing.
Types of employment contracts in Saudi Arabia
The Saudi Labor Law divides employment contracts into two main types:
1. Fixed-term contract:
This contract has a specified start and end date. The maximum duration is 5 years, and it can be renewed. If the employee continues working after the contract ends, it automatically converts into an indefinite-term contract.
2. Indefinite-term contract:
This contract has no specified end date and continues until one of the parties decides to terminate it according to the law.
Essential elements of an employment contract
Any Saudi employment contract must include: the names of the parties, start date, contract type, salary and allowances, job description, working hours, annual leave (21 days), probation period (maximum 90 days), and notice period.
Registering the contract on the Qiwa platform
The Qiwa electronic platform, affiliated with the Ministry of Human Resources and Social Development, is the official platform for registering employment contracts. The employer is obligated to register the employee’s contract within 3 days of the start date.
Probation period
The law allows a probation period not exceeding 90 days, which can be extended once. During this period, either party has the right to terminate the contract without notice or compensation.
Contract termination and compensation
Fixed-term contract: Compensation equal to the wages for the remaining period.
Indefinite-term contract: 30 days’ notice for monthly salary, 15 days for weekly salary.
Frequently Asked Questions
Q: Is it permissible for an employment contract to be verbal?
A: No, it must be in writing in Arabic. The Arabic text is legally binding.
Q: Can the employer change my salary after signing?
A: No, the agreed salary cannot be reduced without your written consent.
Q: What is the difference between the two contract types in terms of end-of-service benefits?
A: Both are entitled to end-of-service benefits under the same provisions. The difference lies in the notice and compensation upon termination.
Q: Can I work for more than one employer?
A: A full-time contract prohibits working for another employer without the primary employer’s consent.
Q: How can I verify that my contract is registered on Qiwa?
A: Log in to the Qiwa platform and inquire using your ID number or residency number.
