The Ministry of Labour has officially announced and published the new employment contract template which should be completed in respect of all employees working in the Kingdom of Saudi Arabia ("KSA"). The Articles included in the new template are mandatory and must be included in each employment contract. All employers in KSA are advised to immediately unify and standardize their individual employment contracts to be compliant with the template. Employers may include additional terms and conditions in their own employment contracts provided these do not contradict the terms of the template or the provisions of any KSA law.
The new employment contract template issued by the Ministry includes guidance on the different type of provisions which apply to fixed term contracts, unlimited contracts, Saudi and non-Saudi nationals and female employees. The guidance also specifically states which terms are mandatory and which are optional to prevent labour violations and resulting penalties.