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What is the importance of Employment Contract in Saudi Arabia?

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Sudheesh Sudheesh
Answered on March 24,2020
  • It is mandatory for all expatriate workers to have a written Employment Contract signed by the employee and the employer whereby the former undertakes to work for the latter for a wage, with a specific duration, usually two years. If no duration is specified, the duration of the work permit will be deemed as the duration of the contract.
  • It will be signed by both parties prior to applying for an emigration clearance/visa.
  • As per the Saudi labour law, the language of a contract shall be Arabic, and if the contract is made in any foreign language beside Arabic, in case of dispute, the Arabic text shall prevail. It is, therefore, necessary to insist that the Employment Contract is prepared in Arabic and English and to verify that the contents of both versions are the same.
  • The worker must understand the contents of the Employment Contract, which details the terms of the employment including entitlements and obligations of both the worker and the employer,
  • The following are the salient features of an employment contract: (1)Name of the employer, (2) place of work, (3) Job Title/Profession, (4) Duration of contract (5) Probation period, (6) Basic monthly salary, (7)Working hours, weekly rest overtime; (8) Accommodation, (9) Transportation (10) Food or food allowance, (11) Medical expenses, (12) Cost of iqama, exit/re-entry visa, exit visa etc. (13) Vacation – leave period, leave pay and cost of airfare, (15) Termination (17) End of Service Benefits, (18) Renewal of validity of contract period, (19) transportation of mortal remains in case of death (20) Mode of settlement of disputes, etc.
  • Before signing the contract, one must carefully go through it and in case of doubt, seek clarification from the prospective employer/RA.
  • Seek the assistance of someone knowledgeable, other than the RA, to explain the contents of Employment Contract if it is in a language not known to you.
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