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February 20, 2024 - بواسطة amel alenazi

Employment Contracts in the Saudi System: Standardization of Terms and Enhanced Protection for Workers

As part of efforts to develop the legal framework for labor in the Kingdom of Saudi Arabia, and aiming to achieve justice and provide a stable and motivating work environment, the Saudi government issued Article 52 of the Saudi Labor Law. This article establishes the foundation for standardizing employment contracts and ensuring protection for workers.

  1. Standardization and Transparency:

According to Article 52, employers are required to use a standardized template for employment contracts, containing essential information to ensure transparency and uniformity in the employment relationship. This template includes details such as:

  • Employer's name and location.
  • Employee's name, nationality, and identity documentation.
  • Employee's residential address.
  • Agreed-upon salary, including benefits and allowances.
  • Nature and location of work.
  • Date of employment commencement and duration if fixed.

This step enhances transparency and safeguards the rights of both parties in the contract, reducing the likelihood of breaches or violations.

  1. Enhancing Workers' Rights:

The mentioned article guarantees both parties in the contract the right to add additional clauses, as long as they do not conflict with the provisions of labor laws, regulations, and executive decisions. This flexibility allows parties to include additional clauses regarding their rights and obligations with greater precision and clarity.

For example, employees may add clauses related to leave entitlements, health and social insurance, as well as clauses concerning dispute resolution mechanisms and protection of their rights in case of disputes.

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