Article (50):

An employment contract is a contract concluded between an employer and a worker, under which the latter undertakes to work under the employer's management or supervision for remuneration.

Article (52):

  1. Taking into account the stated in Article (37) of this Law, the Ministry shall set a standard form for each type of employment contract, which basically includes: the name and place of the employer, the name and nationality of the worker, what is necessary to prove his identity, his address of residence, the agreed remuneration including benefits and allowances, the type and place of work, the date of joining it, its duration if it is limited in duration, and the rights and basic obligations of each party.

  2. The employment contract shall be in accordance with the form referred to in paragraph (1) of this article, and the parties to the contract may add other clauses to it, in a manner that does not conflict with the provisions of this law, its regulations, and the decisions issued in implementation thereof.

Article (55):

  1. The fixed-term employment contract expires at the end of its term, and if the parties to it continue to implement the contract, it shall be considered renewed for an indefinite period. Subject to the provisions of Article (37) of this Law for non-Saudis.

  2. If the fixed-term contract includes a condition that requires its renewal for a similar period or for a specified period, it shall be renewed for the agreed period. If the renewal is multiple three times in a row, or the duration of the original contract with the renewal period is four years, whichever is less, and the parties continue to implement it, the contract shall be transformed into an indefinite contract.

Article (56):

In all cases where the contract is renewed for a specified period, the period to which the contract is renewed is an extension of the original period in determining the rights of the worker for which the period of service is included in its calculation.

Article (57):

If the contract is for a specific work, it ends with the completion of the agreed work.

Article (74):

The employment contract shall terminate in any of the following cases:

1- If the two parties agree to terminate it, provided that the worker's consent is in writing.

2- If the period specified in the contract expires, unless the contract has been expressly renewed in accordance with the provisions of this Law, it shall continue until its expiry.

3- Based on the will of one of the parties to the indefinite contracts, in accordance with the provisions of Article (75) of this Law.

3- (bis) - Resignation

4- The worker has reached the retirement age in accordance with the provisions of the Social Insurance Law, unless the two parties agree to continue working after this age.

5- Force Majeure.

6 -Closing the establishment permanently.

7- Termination of the activity in which the worker works, unless agreed otherwise.

7- (bis) The issuance of a final decision or judgment by the competent court to terminate the employment contract in any of the bankruptcy procedures opened in accordance with the bankruptcy system.

8- Any other condition provided for by another regulation.

Authored on
04-Rajab-1444-26-January-2023
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