The Employment Contract Under the Saudi Labor Law: Mandatory Details, Term, Probation and Documentation

Writing and documentation

Article 50 defines the employment contract as a contract under which the worker undertakes to work under the employer's management or supervision in return for a wage. Following the amendment issued by Royal Decree No. (M/44) dated 8/2/1446 AH, Article 51 now requires the contract to be written in two copies, one kept by each party, and to be documented in accordance with the relevant statutory provisions and the implementing regulations.

Even so, the contract is deemed to exist even if it is not written; in that case, the worker alone may prove the contract and his rights under it by all means of proof, and either party may request that the contract be put in writing at any time.

Mandatory contract details

Under Article 52 as amended, the Ministry sets a unified model for each type of employment contract, which must essentially contain:

• The employer's name and location.
• The worker's name, nationality, identification details and address of residence.
• The agreed wage, including benefits and allowances.
• The type and place of work and the start date.
• The contract term, if it is fixed-term.
• Each party's basic rights and obligations.

The contract must follow this model, and the parties may add other clauses that do not conflict with the law, its implementing regulations and the decisions issued under it.

Documentation through the Qiwa platform

The "Contract Management" service of the Ministry of Human Resources and Social Development allows establishments to create and document employment contracts electronically through the Qiwa platform. The contract is sent to the worker to review, and the worker may approve it, reject it or request amendments; it is documented once both parties approve. So review the details recorded on the platform, especially the wage, allowances, job title and term, before approving. Remember that an undocumented contract does not forfeit the worker's rights, since under Article 51 he can still prove the relationship and his rights by all means of proof, but documentation avoids many disputes over wages, term and job title.

Fixed-term and indefinite contracts

• Non-Saudi workers: Article 37 as amended requires the contract to be written and fixed-term; if it does not state a term, the term is deemed one year from the actual start date, and if work continues afterwards, it is deemed renewed for a similar period.
• A fixed-term contract ends when its term expires; if the parties continue to perform it, it is deemed renewed for an indefinite term, subject to Article 37 for non-Saudis (Article 55).
• If the contract includes a renewal clause and is renewed three consecutive times, or the original term plus renewals reaches four years, whichever is shorter, and the parties continue to perform it, it becomes an indefinite contract.

The type of contract directly affects how it can be terminated and how compensation is calculated under Article 77.

Probation after the 2025 amendments

Article 53 now requires that a probation period be expressly stated in the contract and its duration clearly specified, provided the total duration does not exceed one hundred and eighty days in any case. The implementing regulations specify which leaves are not counted toward it, and either party may terminate the contract during it.

Article 54 provides that a worker may not be placed on probation more than once with the same employer, except by written agreement for a different profession or job, or after at least six months have passed since the relationship ended. If the contract is terminated during probation, neither party is entitled to compensation and the worker is not entitled to an end-of-service award. For details, read the 2025 Labor Law amendments.

Checklist before signing

• The contract details on Qiwa match the agreed job offer.
• The basic wage and each allowance are stated separately, with the payment date.
• The contract type, term and renewal terms are stated if it is fixed-term.
• Any probation period and its duration are expressly stated.
• Working hours, place of work and job title.
• A reference to the approved work regulations and company policies.

Keeping a copy of the documented contract and any later annex or amendment makes it easier to prove rights in the event of a dispute.

Contract language and clauses worth reviewing

Article 9 requires Arabic to be used in employment contracts, and if a foreign language is used alongside it, the Arabic text alone prevails. Clauses worth reviewing include:

• The breakdown of basic wage and allowances, given their effect on calculating entitlements.
• The place of work and the limits on transfer and assignment.
• Non-compete clauses: under Article 83, to be valid they must be in writing, specific as to time, place and type of work, and last no more than two years from the end of the relationship.
• Confidentiality and information-protection clauses.
• Probation, notice and termination terms.

Establishments can have their contract templates and policies reviewed through our HR legal advisory service.