Unified Employment Contract in KSA: Qiwa Guide

The unified employment contract is the template the Ministry of Human Resources and Social Development (HRSD) uses to govern the relationship between an employer and a worker in the private sector. It is concluded and documented electronically on Qiwa, where both parties review and accept it before it is approved. The contract sets out the core terms of the relationship, such as job title, wage, contract type and place of work, and the parties can add any further terms they agree on, as long as those terms do not conflict with the Labor Law. This guide covers who needs the contract, what the template includes, how to prepare and document it, and what to watch for when a contract is terminated or not renewed.

Who needs a unified employment contract?

Every private-sector establishment that employs workers, Saudi or non-Saudi, needs one, whether it is a large company or a small sole establishment. A documented contract serves everyone involved:

The employer: it confirms the employer’s right to set duties, the place of work, the probation period and confidentiality terms, and it is the reference point in any dispute.
The worker: it makes the wage, allowances, leave, working hours and end-of-employment rights clear.
The establishment’s official records: services linked to the establishment and the worker are built on the contract data, so that data should match what is registered with the General Organization for Social Insurance (GOSI).

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What does the employment contract template include?

Many people look for an employment contract template in an editable file, but what matters more than the file format is that the terms are complete and clear. The unified template usually covers:

Details of the employer and the establishment, and the worker’s details, ID and nationality.
The job title, a short description of duties, and the place of work.
The contract type, fixed-term or indefinite, and its start date.
The basic wage, the agreed allowances and how they are paid.
Working hours, weekly rest and leave in line with the Labor Law.
A probation period, if one is agreed, within the limits the law allows.
Additional terms the parties agree on, such as confidentiality, non-competition and training. Some of these have their own legal conditions that must be met.

The Labor Law requires contracts to be in Arabic. A translation into another language may accompany the contract, but the Arabic text prevails if the two differ. If your establishment uses an internal draft before documentation, keep it consistent with the unified template on Qiwa, and do not treat it as a substitute for documenting the contract.

How to prepare and document the contract on Qiwa

Screens and options may change as the platform is updated, but the general path is as follows:

Prepare the establishment account: make sure the establishment’s Qiwa account is active and that the delegated user who manages contracts still has valid permissions.
Select the worker: a worker already registered to the establishment appears on the platform; otherwise the worker is added according to their situation, for example a new Saudi employee, or an expatriate worker once their recruitment or transfer of services is complete.
Fill in the contract details: enter the job title, wage, allowances, contract type and duration, and working hours, then add the additional terms you have agreed.
Send the contract to the worker: the contract reaches the worker’s own Qiwa account, where they review it and accept or reject it.
Approve the contract: once the worker accepts, the contract is documented electronically, and each party can view it from their account on the platform.
Match the data: check that the wage recorded in the contract matches the wage registered with GOSI and the salaries uploaded through Mudad.

Terminating or not renewing an employment contract

The Labor Law sets the rules for ending a contract, and they differ by contract type and by the reason for termination:

Fixed-term contract: it ends when its term expires. If the contract or the law requires notice of non-renewal, that notice period must be respected. Ending the contract before its term without a legitimate reason may oblige the party ending it to compensate the other party as the law and the contract provide.
Indefinite contract: either party may end it for a legitimate reason by giving written notice within the statutory notice period. Failing to give notice, or ending the contract without a legitimate reason, leads to compensation set by the law.
Termination without an award or compensation: the law lists specific cases in which the employer may terminate the contract without an end-of-service award, notice or compensation, and other cases in which the worker may leave without notice while keeping all their statutory rights. Applying these cases requires careful documentation of the facts and following the prescribed procedures.

Notice periods and compensation amounts are set by the Labor Law and by what the parties agree in the contract, and they may change with legal amendments, so check them against the guides HRSD publishes before you send any notice. When the relationship ends for any reason, the end-of-service award is calculated under the Labor Law, and the amount depends on the length of service and the reason the relationship ended.

Common mistakes in employment contracts

Relying on a job offer or an undocumented paper contract: this weakens the establishment’s position in a dispute and delays services linked to the worker.
Different wages in the contract, the GOSI record and actual pay: this is one of the main causes of disputes and exposes the establishment to liability.
A job title that does not reflect the actual work: this can affect occupation-related obligations and how Saudization is counted.
Terms that reduce the worker’s statutory rights: such as waiving the end-of-service award or leave in advance. Any condition that conflicts with the Labor Law is void unless it is more beneficial to the worker.
Not updating the contract: changing the wage, job title or place of work without documenting the amendment electronically.
Ignoring the expiry dates of fixed-term contracts: the notice deadline passes, or the contract renews without a deliberate decision by management.

How an establishment keeps its contracts compliant

Make documenting the contract on Qiwa a fixed step in your hiring process, not a later task done only when needed.
Check regularly that contract data matches GOSI records and the salaries uploaded to Mudad.
Keep an internal register of fixed-term contract expiry dates, with an advance reminder so renewal decisions are made on time.
Document any change to wage, job title or duties by updating the contract electronically, not by verbal agreement.
Adopt internal work regulations that comply with the Labor Law. They complement the contract on detailed matters such as penalties and attendance.
Follow amendments to the Labor Law and HRSD guides, because some rules may change.

The Innovant team can help you review contract terms before they are documented and keep contract data consistent with your establishment’s records.

Frequently asked questions

How do I prepare an employment contract for a new employee in Saudi Arabia?

The employer prepares the contract from the establishment’s Qiwa account using the unified template: enter the job details, wage, contract type and any additional terms, then send it to the worker for approval. Once the worker accepts, the contract is documented and available to both parties.

Is a job offer a contract?

A job offer is a step before the contract that sets out the proposed terms, and it may create obligations depending on its wording and the acceptance that follows. The safest course for both the establishment and the worker, though, is to turn an accepted offer into a contract documented on Qiwa as soon as possible, so the terms are clear and approved.

How do I know an employment contract is sound?

A sound contract is documented electronically and its data matches reality: the wage in the contract is the same as the wage registered with GOSI and actually paid, the job title reflects the work, and the additional terms do not conflict with the Labor Law. The worker can view the contract in their Qiwa account to confirm this.

How do I get a copy of an employment contract?

Documented contracts are available to both parties on Qiwa: the employer finds them in the establishment account and the worker in their personal account. If the contract is old and was never documented, ask the HR department for a copy, and it is better to have it documented.

Can an employer terminate an employee’s contract?

Yes, within the limits set by the Labor Law: when a fixed-term contract expires, for a legitimate reason with notice in an indefinite contract, or in the cases where the law allows termination without an award. Ending a contract without a legitimate reason may oblige the employer to pay compensation set by the law.

Can an employee terminate an employment contract?

A worker can end the contract by resigning and giving the required notice, and may also leave without notice in cases defined by the law that relate to the employer breaching its obligations. Each case affects the end-of-service award and compensation differently, so it is best to record the reason in writing.

Unified Employment Contract in Saudi Arabia: Template and Qiwa Steps