Document background
The Founder Employment Agreement is essential when transitioning from an informal founding role to a formal employment relationship within a Saudi Arabian company. This document becomes necessary either at company formation or when formalizing the founder's role as an employee, typically coinciding with funding rounds, company growth, or corporate restructuring. The agreement must comply with Saudi Labor Law while addressing the unique aspects of a founder's position, including their dual role as both employee and significant stakeholder. It covers crucial areas such as executive duties, equity arrangements, intellectual property rights, and confidentiality obligations, while ensuring alignment with Saudi Arabian corporate governance requirements and cultural considerations. This agreement is particularly important for protecting both parties' interests, establishing clear expectations, and providing a framework for the founder's employment relationship that accommodates their special status within the company.
