What must an indefinite-term employment contract show?

The parties and authenticating the contract in Qiwa

The first thing the contract must show is the full and accurate identity of both parties, because a contract authenticated in Qiwa is read against the official records of the establishment and the employee. Any mismatch between the paper and the platform invites requests for changes, or a rejection, when the employee is asked to approve the contract.

• The establishment: its name as shown in the commercial register, the register number, its establishment number with the Ministry of Human Resources, its address, and the name and capacity of the person signing for it.
• The employee: the full name as on the national ID, the ID number, nationality, date of birth, address, and an agreed contact channel for notices.
• Authentication status: a statement that the contract is authenticated electronically through Qiwa and that the authenticated version is the reference in case of any difference.

The Ministry of Human Resources and Social Development urges private sector establishments to authenticate the contracts of their Saudi and non-Saudi employees through Qiwa's contract authentication service, and a contract counts as authenticated only when both parties agree, which means the employee reviews the data and accepts it or asks for changes. So write the contract to match what you will enter in the platform, letter for letter.

An important routing note: the indefinite-term contract in this guide is for a Saudi employee. For a non-Saudi worker, the provisions published on the ministry's site state that the contract must be written and fixed-term, and Sighaty's template for that case is E-01 (the fixed-term employment contract).

Job title, profession code and start date

The job title in the contract is not a free description the establishment writes as it likes. It must correspond to a specific profession as stated in the Saudi Standard Classification of Occupations, with the same code recorded for the employee in Qiwa. The title is how the ministry reads Saudization ratios, and it is what decides any dispute over the nature of the work expected from the employee.

This month's news angle: the Ministry of Human Resources and Social Development announced that the decision to Saudize administrative support professions entered into force at 100 percent in the private sector from 4 October 2026, covering 69 administrative support professions as defined and titled in the Saudi Standard Classification of Occupations, such as administrative assistant and receptionist. The ministry's page refers to Ministerial Decision No. 132249 dated 5 April 2026 approving the update of the procedural guide for administrative support professions. The practical lesson for the contract: if your Saudi employee's role is one of these professions, make sure the title and profession code in the contract and in Qiwa are accurate and identical.

The start date is the heart of the indefinite-term contract: write the actual commencement date clearly, and write no end date at all. An end date in a contract labelled indefinite creates a contradiction that is usually read against the party who drafted it. The probation period, the length of service and, later, the end-of-service award are all counted from the start date.

Wage, allowances, working hours and leave

Write the basic wage as a figure in riyals, then each fixed allowance separately by name and amount: housing, transport and any other regular allowance. This separation is not a formality. Under Article 84 of the Labor Law, the end-of-service award is calculated on the last wage including fixed regular allowances, excluding occasional bonuses. The clearer the contract is about what is fixed and what is occasional, the fewer the disputes at settlement.

• The basic wage and the amount of each fixed allowance in riyals, the monthly payment date, and payment into the employee's bank account.
• What counts as an occasional, non-binding bonus or incentive, so it is not later read as part of the fixed wage.
• Daily or weekly working hours and rest days, by reference to the Labor Law and the establishment's internal work regulation.
• Annual leave and other leave, at no less than the law provides, with a reference to the establishment's approved leave policy.

Note that we have not stated the number of hours, the leave durations or the overtime rate here, because these figures must be taken from the law in force at the time of signing, not from a general guide. That is what template E-02 does: it refers to the provisions in force, and the licensed lawyer updates it whenever they change. A clear wage has one more benefit for a Saudi employee: under Nitaqat they count as a full worker at 4,000 riyals or more, as half a worker between 3,000 and 4,000 riyals, and not at all below 3,000 riyals.

Probation, notice and termination

Probation exists only if it is stated expressly and in writing in the contract or in an annex to it. Under Articles 53 and 54 of the Labor Law, it may not exceed 180 days in total including any extension, an extension is valid only by written agreement of both parties, and a unilateral extension by the employer has no effect. The two Eid holidays, Hajj leave and sick leave days are not counted in it. If the contract leaves probation out, the employee is treated as confirmed from day one.

Notice is what sets the indefinite-term contract apart: because it has no end date, it is ended by written notice for a valid reason. The contract must state the notice period for each party, how notice is given, and what applies if the period is not observed. Notice periods have been amended in the Labor Law, so we do not state the figures in this guide, and the template takes them from the text in force after the lawyer's review.

• The notice period required from each party, and the notice channel agreed in the contract.
• What applies if the contract is ended without observing the notice period.
• A reference to Article 80 of the Labor Law for the cases of termination without award or notice, and to Article 71 for the documented disciplinary path.
• What each party hands over at the end: company property, documents and the service certificate.

End of service, confidentiality and transfer of services

The contract does not need to restate the award table. It is enough to refer to Article 84 of the Labor Law for calculating the end-of-service award and to Article 85 for the entitlement on resignation, and to define clearly the wage on which it is calculated, as above. The common mistake is a contract that sets a lower calculation base than the law provides, so the clause fails and the dispute remains.

The confidentiality clause protects the establishment's information during and after employment: it defines confidential information, sets what the employee may use it for, and requires the return of everything in their custody at the end. If the establishment needs wider protection of intellectual property or a restriction on competition, it is better placed in a separate agreement or annex signed with the contract.

On transfer of services, the contract must answer two questions: what happens if the employee is moved to another branch or site of the same establishment, and what happens to the contract and the employee's rights if ownership of the establishment changes or it merges. The statutory rule on a transfer of the establishment needs the lawyer's confirmation before it is written as a rule, so the certified template handles it rather than this guide.

Steps to complete the indefinite-term employment contract

These are the steps in the order that keeps authentication errors to a minimum, from collecting the data to filing the authenticated copy.

1. First confirm that the employee is Saudi. If not, move to the fixed-term employment contract E-01.
2. Collect the establishment data from the commercial register and the employee data from the national ID, and match them against Qiwa.
3. Set the job title and profession code as stated in the Saudi Standard Classification of Occupations, and check whether the profession is one of the administrative support professions covered by Saudization.
4. Enter the actual start date and write no end date.
5. Itemise the basic wage and each fixed allowance in riyals, with the payment date and method.
6. Refer working hours and leave to the law, the internal work regulation and the leave policy.
7. Decide on probation expressly and in writing without exceeding 180 days, or leave it out deliberately.
8. Complete the notice, termination, end-of-service, confidentiality and transfer of services clauses from the certified template.
9. Sign the contract, then enter it in Qiwa's contract authentication service and follow the employee's approval or change request.
10. File the authenticated copy in the employee's record, and document any later change in a written annex updated on the platform.

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