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Contract templates in Saudi Arabia: the rules to know
For 16 common contracts: what the law provides in Saudi Arabia, the formalities and the reference texts. Each card links to the full guide and to the template to generate.
In Saudi Arabia, the Labour Law frames probation, notice and termination compensation; a non-Saudi worker's contract must be written and fixed-term (art. 37).
Probation must be stated expressly in the contract, with a total maximum of 180 days; either party may terminate during probation (amended art. 53).
Termination for a valid reason with written notice: at least 30 days by the employee, 60 days by the employer if pay is monthly (amended art. 75).
In Saudi Arabia, the Labour Law governs the qualification and training contract (arts. 45 to 49); the Tamheer programme funds placements for young Saudi graduates.
Tamheer programme (HRDF): unemployed Saudi graduates aged 30 or under; 3 to 6 months; SAR 3,000 per month paid by HRDF; no GOSI registration.
Training contract stating the trade, duration and stages, target skill, allowance for each stage (never piece-rate), and rights and obligations (art. 46).
In Saudi Arabia, resigning from a fixed-term contract is subject to the employer's acceptance, while an open-ended contract ends by written notice; the request is filed on Qiwa.
Resignation: the employee's written statement, free of coercion or conditions, to end a fixed-term contract, together with the employer's acceptance (art. 2).
Deemed accepted after 30 days without reply, deferral of up to 60 days by reasoned written notice; withdrawal possible within 7 days if not yet accepted (art. 79 bis).
The Civil Transactions Law sets the framework: free formation of contract, a regulated penalty clause and statutory periods counted on the Hijri calendar.
A contract is formed when offer and acceptance meet, expressed by any means, oral, written, sign or exchange, unless the law requires otherwise (art. 31 and 33).
Penalty clauses are allowed (art. 178), not due if the creditor suffered no loss, and reducible by the court if excessive (art. 179).
In Saudi Arabia, freelance work relies on the Freelance Work Document issued by the Ministry of Human Resources and Social Development and managed on freelance.sa.
The Freelance Work Document is issued by the Ministry to Saudi nationals aged 18 or over with an active Absher account.
Valid for one year from issue; renewal, change of activity and verification are handled on freelance.sa.
In Saudi Arabia, an NDA falls under the general contract rules of the Civil Transactions Law (Articles 31 and 33), supplemented by regulations on confidential commercial information.
Trade secrets are protected by the Regulations for the Protection of Confidential Commercial Information (Decision No. 3218 of 1426H); the injured party may claim compensation (Article 8).
Independent discovery and reverse engineering are not a breach under the Regulations (Article 3); the contract may address them expressly.
In Saudi Arabia, sales fall under the Civil Transactions Law, which governs transfer of ownership, delivery and the warranty against defects.
Ownership passes when the contract is concluded; retention of title is possible where payment is deferred (Civil Transactions Law, arts. 307, 318 and 320).
Delivery by handing over possession or by notified making available; loss before delivery without either party's fault: rescission and return of the price (arts. 324 and 329).
In Saudi Arabia, publishing advertising content on social media requires the Mawthooq licence issued by the General Authority for Media Regulation (GAMR).
A GAMR licence (Mawthooq) is required to publish advertising content on social media: SAR 15,000, valid for three years, 30-day processing time.
Advertising only through a registered account linked to the licence, in line with content and age-rating rules; immediate removal at the Authority's request.
In Saudi Arabia, the 1447H landlord-tenant provisions also apply to commercial premises, and leases are registered on the Ejar platform.
The 1447H provisions cover property in urban areas used for residential, commercial or mixed purposes (clause 1).
Riyadh: rents frozen for five years from 25 September 2025, with possible extension to other cities; re-letting capped at the last rent (clauses 2, 5 and 6).
In Saudi Arabia, powers of attorney are issued online on Najiz, without a notary, under the conditions set by the Ministry of Justice.
A contract may be concluded by an agent within the limits of the power of attorney; its effects bind the principal (Civil Transactions Law, art. 87, 88, 90).
The agent may not contract with themselves without authorisation (Civil Transactions Law, art. 93).
The guides cover 16 contracts: Permanent employment contract, Fixed-term employment contract, Internship agreement, Resignation letter, Service agreement, Agreement between two parties, Freelance contract, Non-disclosure agreement (NDA), Partnership agreement, Sale of goods, Influencer agreement, Residential lease, Commercial lease, Acknowledgment of debt, Car sale agreement, Power of attorney. Each one sets out the essential clauses, the rules in Saudi Arabia and a template to customise online.
Each guide shows its last update date and its reference texts. This is general information and does not replace legal advice suited to your situation.
Open the contract guide, then generate the template on E-Tafakna: the questionnaire adapts the clauses, and the contract can then be signed online and archived.
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