Saudi Arabia makes wage clause legally binding in job contracts

Logo of The Ministry of Justice and the Ministry of Human Resources and Social Development (MHRSD)

The Ministry of Justice and the Ministry of Human Resources and Social Development (MHRSD) launched the Unified Employment Contract, designed to regulate the contractual relationship between employers and employees in accordance with the Labor Law, while documenting rights and obligations to ensure their legal enforceability.

According to an official statement, the contract aims to enhance legal and judicial guarantees for all parties by documenting employment agreements, confirming the rights and obligations they entail, and recognizing them as enforceable instruments, particularly regarding wages.

This enables workers to directly claim their dues through the Enforcement Court, without the need for litigation before the Court of First Instance.

The Unified Employment Contract is part of a series of digitally verified contracts recently introduced by the Ministry of Justice, including the unified lease contract and the vehicle rental contract. These legally binding instruments contribute to preventive justice and protection of rights, helping reduce court disputes and promote justice and transparency.

The statement added that the Unified Employment Contract is expected to deliver tangible positive outcomes for both employers and employees, as well as for the overall work environment, by fostering trust and stability in the labor market and enhancing the Kingdom’s appeal as an investment destination.