The employment contract and its’ term

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  • The employment contract of a non-Saudi national must be written and for a definite term. If the contract does not specify the term, the expiration date of the work permit is considered the expiration date of the contract.
  • The costs of employing expatriates are as follows:
    • The employer is responsible for the cost of recruiting new employees and expatriates into the country, the cost of residency and work permit (iqama), the cost of its' renewal, fines for late renewals, the cost of changing occupation, exit and returns, and the cost of return tickets for employees after the termination of their contractual relationship.
    • The employee is responsible for the cost of return tickets if he is not qualified to work, or if he wishes to return for no specific reason.
    • The employer is responsible for transfer expenses if the employee wishes to transfer his sponsorship to the employer.​

Related FAQ

​The job contract of non-Saudi employee must be of fixed term and may not turn into an indefinite term contract in accordance with the principle set out in Article 37 of the Labor Law for employment of non-Saudi persons. It provides that "the non-Saudi employee's job contract must be written and of fixed term. If the contract doesn't refer to its term, the work license shall be the contract term", This is in accordance with Article 37 of the Labor Law.

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