As of Article 37 in Saudi Arabia, the labor contract must be written from a sponsor to an employee. The contract should have a fixed value of the exact time, date and month. The contract between employer and employee must be transparent.
Employment Contract Terms and Employer Responsibilities
As I mentioned above there should be a transparent contract between the sponsor and expatriates. There must be the specified expiration date of the contract. However, if there is no contract expiry date mentioned. Then the last date of the Iqama is considered as the expiry date of that contract.
It doesn’t matter if the sponsor is Kafeel or company they will have the following responsibilities as per Article 40 in Saudi Labor Law:
In Saudi Arabia, the Kafeel, Sponsor, or Company is fully responsible for the cost of the recruiting expatriates in KSA. Let say you are a kafeel and you are about recruit an expatriate. Then you are the responsible person for the cost of the recruiting.
The employer or Kafeel is the responsible person the cost for the Iqama renewal of their labor in KSA. It is also mandatory that as a sponsor you should make a new Iqama ID. Not just for one but for all of your labor for the first time.
If an employee is wanna change the profession on the Iqama then you are the person responsible to pay the cost. Also changing visa, tickets and to give the employee full payment upon termination.
Furthermore, the employee is responsible if he doesn’t wanna stay and don’t work without providing a solid reason or not working and leaving, in such case he should pay the cost, not the employer.
The final thing, as an employer you are responsible for the cost of changing labor location, giving them medical cards and proper treatment in case of illness, etc, and there are more things we cannot cover on this single page.