The law and reality of your contract
Expatriates working in Saudi Arabia are in an unenviable situation. All of us have fixed term contracts which we sign before taking up an assignment in the kingdom. We just assume that once the contract is extended, we have another term of stay in the kingdom.
I have mentioned in the past
the importance of going through your contract terms and conditions very carefully before signing it. What protects you once you land here is only the contract and nothing else. Note that all the important things which matter to the expatriate, your job title, family visa, end of service benefits, virtually all of your benefits and obligations of your sponsor, are all based on your contract.
My attention was drawn to an interesting article in today’s Arab News. This is a question by one of the readers to a lawyer about the status of his contract. The question relates to a “time bomb clause” in the contract by which the employer can terminate the contract at any point of time by giving a month’s notice despite a contract to the contrary. The reply given by the lawyer is 100% correct and I have no reason to dispute it, given that the learned lawyer is a well-respected one in his profession. What I would like to focus in today’s post is what is NOT mentioned in the reply.
For those of us expatriates who have continued to stay beyond the “initial” contract which was signed after entering the kingdom for the first time, you must be careful on what you sign while extending your contract. Clever employers use the word “extension of contract” rather than just “contract”. Expatriates working in Saudi Arabia must be aware of their rights and obligations while extending their contract with the above words. What this means in simple language is explained below.