The Saudi Employment Contract After the 2025 Labor Law Amendments: Full Guide and Ready Template
Everything an employer needs to draft a fixed-term employment contract aligned with the amended Labor Law, the Qiwa platform, and the Wage Protection System.
The Labor Law amendments that took effect in 2025 introduced fundamental changes to how employment contracts are drafted in the Kingdom, and the old contract that many businesses still circulate is no longer sufficient or safe. The rules on the probation period changed, authenticating the contract on the Qiwa platform became a precondition for starting work, and the wage written in the contract is now tied directly to the amount actually transferred through the Wage Protection System. These are not minor details; they affect the validity of the contract and expose the business to fines and violations if ignored.
This page explains what actually changed, the mandatory clauses every contract must contain, and how to keep the contract one hundred percent aligned with Qiwa fields, along with the common mistakes that cost businesses fines. We have prepared the ready template (template E-01: Fixed-Term Employment Contract) to match these requirements directly.
The fixed-term contract is the most common and suitable form for small and medium private-sector businesses, because it sets a clear start and end to the employment relationship and makes workforce planning and end-of-service calculation easier. Everything below is built specifically around this type.
Get the Fixed-Term Employment ContractE-01The key 2025 Labor Law amendments that affect your contract
If you are using a contract drafted before 2025, it is most likely no longer compliant. The most important points to review before signing any new contract are the following.
- Probation period: it may be extended up to a maximum of one hundred and eighty days under Articles 53 and 54 of the Law, provided it is stated clearly in writing in the contract. Unless it is expressly mentioned, the business cannot rely on it.
- Authentication on Qiwa: electronically authenticating the contract on the Qiwa platform has become a precondition for the worker to start, not a step done afterward. A paper contract alone is no longer enough.
- Wage Protection System: the wage recorded in the contract must match the amount actually transferred to the worker through the Wage Protection System, and any discrepancy between them is a violation detected automatically.
- Termination and notice: the amendments tightened the rules on terminating the contract and on notice periods. Termination without a legitimate reason set out in the Law triggers compensation, and the notice period stated in the contract must be respected upon termination.
The mandatory clauses every contract must contain
A valid contract is not just a signed page; it is a document containing the essential elements required by the Law. The absence of any of them weakens the business position in a dispute and opens the door to a violation. Make sure each contract contains the following.
- The parties: the full name of the business and its unified number, and the full name of the worker, his nationality, and his ID or residence permit number.
- Job title and duties: the approved job title and a brief description of the tasks and responsibilities assigned to the worker.
- Wage and allowances: the basic wage and any allowances (housing, transport, others) stated in clear amounts, matching what will be transferred through the Wage Protection System.
- Term and start date: the contract term clearly stated with its start and end dates, since it is a fixed-term contract.
- Working hours: the number of daily and weekly working hours and the weekly rest arrangement.
- Leave: the annual leave entitlement and the provisions for other leave in accordance with the Law.
- End-of-service award: a reference to the worker's entitlement to an end-of-service award under the Law upon the end of the employment relationship.
Ready probation clause
The probation period is among the clauses most often left out, even though it does not apply unless stated in writing. Use the following text and adjust the number of days to suit the role, without exceeding the statutory limit.
يخضع العامل لفترة تجربة مدتها (٩٠) تسعون يوماً تبدأ من تاريخ مباشرته العمل، ويجوز للطرفين الاتفاق كتابةً على تمديدها بما لا يتجاوز مجموعه مئة وثمانين يوماً، ولا تُحتسب إجازات عيدي الفطر والأضحى والإجازة المرضية ضمن مدة التجربة. ولأي من الطرفين الحق في إنهاء العقد خلال هذه الفترة دون إشعار ودون تعويض ما لم يُتفق على خلاف ذلك.
The worker is subject to a probation period of (90) ninety days beginning from the date of starting work, and the parties may agree in writing to extend it provided the total does not exceed one hundred and eighty days. The Eid al-Fitr, Eid al-Adha, and sick leave are not counted within the probation period. Either party has the right to terminate the contract during this period without notice and without compensation, unless otherwise agreed.
Adjust the number of days as needed, and be sure to enter the same period in the probation field on the Qiwa platform.
Ready term and termination clause
The term and termination clause is what protects both parties when the relationship ends. The following text sets out the term, the notice period, and the effect of termination without a legitimate reason.
مدة هذا العقد (١٢) اثنا عشر شهراً تبدأ من تاريخ المباشرة، ويجوز تجديدها باتفاق الطرفين. وإذا رغب أي من الطرفين في إنهاء العقد قبل انتهاء مدته وجب عليه إشعار الطرف الآخر كتابةً قبل (٣٠) ثلاثين يوماً على الأقل. وإذا أنهى أحد الطرفين العقد لغير سبب مشروع من الأسباب الواردة في نظام العمل، التزم بتعويض الطرف الآخر وفق أحكام النظام. ويُوثَّق هذا العقد في منصة قوى قبل مباشرة العامل العمل.
The term of this contract is (12) twelve months beginning from the start date, and it may be renewed by agreement of the parties. If either party wishes to terminate the contract before the end of its term, it must notify the other party in writing at least (30) thirty days in advance. If either party terminates the contract without a legitimate reason among those set out in the Labor Law, it shall compensate the other party in accordance with the Law. This contract is authenticated on the Qiwa platform before the worker starts work.
Make sure the term and notice period here match the data entered in Qiwa.
How to keep the contract one hundred percent aligned with Qiwa fields
The most common problem is not in the contract itself but in its divergence from the data entered in Qiwa. Any conflict between the paper and the platform can void the effect of a clause or be flagged as a violation. Follow these steps to ensure full alignment.
- Prepare the paper contract first and fill in all its data (title, wage, allowances, term, probation, notice).
- Create the contract on the Qiwa platform and enter the same values exactly, with no difference in wage, term, or title.
- Verify that the total of wage and allowances in the contract equals the amount that will be transferred monthly through the Wage Protection System.
- Authenticate the contract electronically on Qiwa and obtain the worker's approval before the start date.
- Keep an authenticated copy of the contract and a record of transfers to prove alignment in any audit.
Common mistakes that cost businesses fines
- Writing a wage in the contract that differs from the amount transferred through WPS, one of the most frequently detected causes of violations.
- Letting the worker start before the contract is authenticated on Qiwa, on the assumption that authentication is a later step.
- Relying on a probation period not stated in writing in the contract, which then cannot be invoked.
- Omitting the notice period or terminating the contract without a legitimate reason, which triggers compensation for the other party.
- Using an old contract template that does not reflect the 2025 amendments and does not contain all the mandatory clauses.
Frequently asked questions
What is the maximum probation period in the Labor Law after the 2025 amendments?
After extension, the probation period can reach one hundred and eighty days under Articles 53 and 54, provided it is stated in writing in the contract. Unless it is expressly mentioned, it does not apply and the business cannot invoke it.
Can the worker start before the contract is authenticated on Qiwa?
After the 2025 amendments, electronic authentication on the Qiwa platform became a precondition for starting work, so authentication and the worker's approval should be completed before the start date, and a paper contract alone is not enough.
What happens if the wage in the contract differs from the amount transferred through WPS?
The wage recorded in the contract must match the amount actually transferred through the Wage Protection System, and any discrepancy is detected automatically and treated as a violation that may carry fines. Make sure the contract, the platform, and the transfer record all match.
What is the difference between a fixed-term and an open-ended contract, and which suits my business?
A fixed-term contract has a clear start and end and is renewed by agreement of the parties, and it suits many small and medium businesses because it makes workforce planning and end-of-service calculation easier. The attached E-01 template is prepared specifically for this type and aligned with the 2025 amendments.
This guide was prepared and reviewed by a lawyer licensed in the Kingdom. The content is general guidance, not legal advice; consult a licensed lawyer for your specific case. Where an Arabic and an English text exist, the Arabic text prevails.