Overview
An employment contract needs a balance between complying with the minimum rights guaranteed by Labor Law and enough flexibility suited to the nature of the company's business, since a contract copied from a generic template may lack terms important to the company's specific activity.
Executive employee contracts need more detail in non-compete and confidentiality clauses compared to regular employee contracts, given the sensitivity of the information they're exposed to.
Regulatory Basis
Employment contracts fall under the Labor Law and its implementing regulations, which set out the minimum rights that must be present in every contract regardless of any contrary agreement.
How We Draft Employment Contracts
We begin by understanding the nature of the position and its level of sensitivity, then draft the contract to reflect that nature, while fully complying with the minimum rights the employee is guaranteed by law.
We draft termination and end-of-service terms with complete clarity from the start, since these clear terms prevent most disputes we see later at the end of the contractual relationship.
Who Needs This Service
A company hiring its first team in Saudi Arabia that needs employment contracts drafted compliant with the law from the start.
A company needing an executive employee contract reviewed with more detailed terms around non-compete and confidentiality.
We consistently see cases where an employer forgets to update an employee's contract after promoting them to a higher position carrying fundamentally different authorities or responsibilities, leaving the original contract meant for the previous role still in effect despite the employee's actual role changing, which creates ambiguity later in any dispute over the scope of their duties or the limits of their actual authority.
Additional Considerations
These contracts connect directly with Saudization and Nitaqat compliance requirements when planning any new hiring.
For non-disclosure and confidentiality clauses within the contract, this connects with our trade secrets service for employees exposed to sensitive information.
Common Questions
Can a non-compete clause be included in an employment contract?
Yes within certain limits, and we draft this clause to comply with Saudi law while protecting the company's interest without exceeding what's permitted.
Do you review existing employment contracts or only draft new ones?
We review existing contracts and update them to align with any regulatory change, alongside drafting new contracts when needed.