If you are working in Saudi Arabia, it’s important to understand the types of employment contracts and what they mean for your job. Different contracts come with different rules, rights, and conditions. Here’s a simple guide to the main types of employment contracts in Saudi Arabia and their key points.
Fixed-Term Contract
A fixed-term contract lasts for a specific period or until a particular task is completed.
- It ends automatically when the agreed time or task is completed.
- If the job continues beyond the contract period, it may change into an indefinite contract in some cases.
- This type of contract applies to both Saudi and non-Saudi employees.
Indefinite Contract
An indefinite contract has no set end date and continues unless terminated.
- It is available only for Saudi employees.
- It does not require renewal and remains valid until one of the parties decides to end it with prior notice.
- This contract provides stability for both the employer and employee.
Temporary Work Contract
A temporary contract is for jobs that last for 90 days or less.
- It ends automatically when the specified time or task is completed.
- It is commonly used for short-term assignments.
Seasonal Work Contract
A seasonal contract is used for work related to specific seasons, such as Hajj and Umrah.
- It automatically ends when the season is over.
- This type of contract is common in industries with seasonal demand.
Training and Qualification Contract
This contract is for training purposes rather than a regular job.
- The employer is responsible for training a person in a particular profession.
- It must clearly state the training duration, stages, and any allowances the trainee will receive.
Part-Time (Partial Work) Contract
A part-time contract is for jobs with fewer working hours than a full-time job.
- Employees can work for multiple employers at the same time.
- It offers flexibility for those who do not need a full-time position.
Key Rules for Employment Contracts
- Contracts must be documented through official platforms to ensure legal protection.
- Termination rules depend on the contract type and conditions outlined in Saudi labor law.
- Compensation and benefits vary based on the contract type and length of service.
Understanding these contracts helps employees and employers manage their rights and responsibilities. Always review your contract carefully before signing to know your rights in Saudi Arabia’s job market.