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Employment Contracts

Publication date: 26 January 2023 - 04 Rajab 1444

Article (50)

An employment contract is a contract concluded between an employer and a worker, whereby the latter undertakes to work under the management or supervision of the former for a wage.

Article (52)

1- Subject to the provisions of Article 37 of this Law, the Ministry shall create a model employment contract, which shall primarily include the name and place of the employer, the name and nationality of the worker, proof of identity, place of residence, agreed upon wage, including benefits and allowances, type and location of work, date of employment, and duration of the contract if fixed.

2- The employment contract shall be in accordance with the model contract referred to in paragraph (1) of this Article. The parties to the contract may add other items not conflicting with the provisions of this Law, its Regulations, and relevant decisions.

Article (55)

1-A fixed-term employment contract shall be terminated upon expiration of its term. If the two parties continue to implement it, the contract shall be deemed to have been renewed for a non-fixed period of time, subject to the provisions of Article 37 of this Law for non-Saudi workers.

2- If a fixed-term contract contains a clause providing for its renewal for a similar term or a specified term, the contract shall be renewed for the agreed upon period. If the contract is renewed for three consecutive terms, or if the original contract term and the renewal period amount to four years, whichever is less, and the parties continue to implement it, the contract shall become a non-fixed term contract.

Article (56)

In all cases where the contract term is renewed for a specific period of time, the contract renewal period shall be deemed an extension of the original term in determining the worker’s rights which takes into account the worker’s period of service

Article (57)

If the contract involves performance of a specific work, it shall be terminated with the completion of the agreed upon work

Article (74)

An employment contract shall be terminated in any of the following cases:

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

2- If the term specified in the contract expires, without having the contract been explicitly renewed in accordance with the provisions of this Law, the contract shall remain valid until the expiry of its term.

3- At the discretion of either party in indefinite term contracts, as stated in Article 75 of this Law.

4- When the worker reaches the age of retirement in accordance with the provisions of the Social Insurance Law unless the parties agree on continuing work after this age.

5-Force majeure.

6- Permanent closure of the firm.

7- Termination of the line of business for which the worker is employed, unless agreed otherwise.

8-Any other case provided for by any other law

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