Employment contract in Saudi Arabia: Template, Key Clauses and Local Law (2026)

What a Saudi employment contract is, and what local law requires An employment contract in Saudi Arabia is a contract of work between an employer and an employee, governed by the Saudi Labor Law (Royal Decree No. M/51) as amended. A major set of amendments took effect on 19 February 2025 and changed probation, notice, resignation and leave, so any contract written before then should be reviewed. The core rules a Saudi contract must respect: - Language. The contract must be in Arabic. A second language version can sit alongside it, but the Arabic text governs before a Saudi court or the labour authorities.

• Probation. The maximum probation period is now 180 days (raised from 90). It must be written into the contract, and either party can end the employment during it.
• Notice. For an indefinite term contract, the employee gives 30 days notice and the employer gives 60 days notice. Resignation is a defined process: if the employer does not respond within 30 days the resignation is treated as accepted, and the employer may postpone acceptance by up to 60 days for a business reason.
• Fixed term for non-Saudis. A contract with a non-Saudi that states no term is treated as a one year term and renews if work continues.
• Working hours. The cap is 9 hours a day or 45 hours a week. For Muslim employees during Ramadan it is 7 hours a day or 35 hours a week.
• Leave. Annual leave is at least 21 days a year, rising to 30 days after five continuous years. Maternity leave is 12 weeks, and fathers get 3 paid days.
• End of service benefit. On the standard formula, the employee earns half a month's wage for each of the first five years and a full month's wage for each year after that, pro rated for part years.
• Social insurance and payroll. Employers register and contribute through GOSI, document contracts on the Qiwa platform, and pay wages through the Wage Protection System. Saudization quotas under Nitaqat affect who you can hire. This is general guidance, not legal advice. Confirm the current position with the Ministry of Human Resources and Social Development before you rely on any clause. Last verified October 2026. ## Saudi Arabia employment contract template Copy the block below and fill the bracketed fields. The working version should be in Arabic. ``` EMPLOYMENT CONTRACT Made on [DATE] BETWEEN: [COMPANY NAME], commercial registration [CR no.], of [address] ("Employer") AND [EMPLOYEE NAME], [nationality], [Iqama / national ID no.], of [address] ("Employee") 1. POSITION AND PLACE OF WORK The Employer engages the Employee as [JOB TITLE], with duties of [summary], based at [location]. 2. TERM [Fixed term of [N] from [START] to [END]] or [indefinite term from [START]]. A non-Saudi contract with no stated term is treated as one year and renews if work continues. 3. PROBATION The first [up to 180] days are probation, during which either party may end the employment on written notice. 4. WORKING HOURS Normal hours are [up to 9] a day and [up to 45] a week, reduced to 7 a day and 35 a week for Muslim employees during Ramadan. [Rest day.] 5. WAGE Basic wage of SAR [AMOUNT] a month, plus [allowances: housing, transport], paid through the Wage Protection System by [date] monthly. 6. GOSI AND BENEFITS The Employer registers the Employee with GOSI and pays the required contributions. [Medical insurance, air ticket, other benefits.] 7. LEAVE Annual leave of [at least 21, or 30 after five years] days. Statutory sick leave, public holidays, maternity or paternity and other leave apply as the Labor Law provides. 8. CONFIDENTIALITY AND IP The Employee keeps the Employer's confidential information secret and assigns to the Employer the rights in work created during employment. 9. NON-COMPETE [Where lawful, a non-compete limited to [N] months, a defined area and defined work; it must be reasonable and in writing to bind.] 10. NOTICE AND TERMINATION After probation, the Employer gives 60 days and the Employee gives 30 days written notice for an indefinite term. The Employer may dismiss without notice only on the grounds the Labor Law allows. 11. END OF SERVICE On lawful end of service the Employee receives the end of service benefit the Labor Law provides. 12. GOVERNING LAW This contract is governed by the Saudi Labor Law and the laws of the Kingdom of Saudi Arabia. Signed: Employer: __________ Employee: __________

- **Working hours (clause 4).** Keep within 9 a day and 45 a week, and apply the shorter Ramadan hours for Muslim employees. Overtime above the cap is paid at the Labor Law rate.
- **Wage and GOSI (clauses 5 and 6).** Wages must run through the Wage Protection System, and GOSI registration is compulsory. State the basic wage clearly, because end of service and many entitlements are calculated on it.
- **Non-compete (clause 9).** A non-compete can bind only if it is in writing and reasonable in time, place and type of work. Keep it narrow, or a court may set it aside.
- **Notice (clause 10).** Use 60 days for the employer and 30 days for the employee on an indefinite term. Follow the resignation process: silence for 30 days counts as acceptance, with a possible 60 day postponement for a business reason. ## Red flags to check before you sign - A contract that exists only in English, when the Arabic text is the one that governs.
- Probation written as longer than 180 days, or not written at all.
- Notice periods that ignore the 60 day employer and 30 day employee rule.
- A non-Saudi contract that leaves the term blank without understanding it becomes a renewing one year term.
- Wages paid outside the Wage Protection System, or no GOSI registration.
- A wide non-compete with no limit on time, area or type of work. ## A note on jurisdiction and Adira's coverage The 2025 amendments moved several figures, so always confirm the current rule with the Ministry of Human Resources and Social Development or Saudi counsel. Adira is India first in its depth today and uses an international setting for other jurisdictions. Deep, verified Saudi coverage, including Arabic language drafting, is on Adira's roadmap rather than established today, so treat any Saudi specific output as a draft to check locally. ## Where a contract workspace helps A template gets you a sound Saudi contract. The ongoing work is keeping every contract in Arabic and consistent across hires, matching each one to the current probation, notice and leave rules, and tracking GOSI, Qiwa and end of service as the team grows. When drafting, review and tracking sit in one AI workspace tuned to how your company hires, the probation length, notice and leave stay consistent across every Saudi hire, with edits made in plain language. [Adira](https://adiralaw.com) is one workspace built to work this way, with Saudi depth on its roadmap. This template alone is enough to put a fair contract in place today.