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Labour Hire Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Labour Hire Contract

"I need a Labour Hire Contract for providing IT consultants to a Saudi government entity, starting March 2025, with specific provisions for data security clearance and Saudization compliance requirements for technical roles."

Document background
This Labour Hire Contract is essential for businesses operating in Saudi Arabia that require flexible workforce solutions while maintaining compliance with local regulations. The document is designed for situations where a labor hire company provides temporary workers to client organizations, establishing a clear framework for this three-way relationship. It incorporates mandatory requirements under Saudi Labor Law, including Saudization quotas, GOSI registration, and Wage Protection System compliance. The contract is particularly relevant in today's dynamic business environment where companies need to manage workforce fluctuations efficiently while ensuring regulatory compliance. It includes comprehensive provisions for worker management, safety protocols, payment structures, and risk allocation, making it suitable for both short-term project staffing and longer-term labor hire arrangements in Saudi Arabia.
Suggested Sections

1. Parties: Identification of the labor hire company, the client company, and reference to the workers covered by the agreement

2. Background: Context of the agreement and general purpose of the labor hire arrangement

3. Definitions: Key terms used throughout the agreement, including 'Workers', 'Services', 'Assignment', 'Charges'

4. Services and Scope: Detailed description of labor hire services, including worker provision and management responsibilities

5. Term and Termination: Duration of the agreement and circumstances for termination, including notice periods

6. Worker Engagement Process: Procedures for requesting, selecting, and engaging workers

7. Charges and Payment Terms: Fee structure, payment schedules, and compliance with WPS requirements

8. Obligations of Labor Hire Company: Responsibilities including worker screening, compliance with labor laws, insurance, and administrative duties

9. Client Obligations: Responsibilities regarding worker supervision, safety, workplace conditions, and cooperation

10. Compliance Requirements: Adherence to Saudi labor laws, Saudization requirements, and other regulatory obligations

11. Workplace Health and Safety: Safety responsibilities and procedures aligned with Saudi regulations

12. Confidentiality: Protection of confidential information between all parties

13. Dispute Resolution: Process for resolving disputes under Saudi law

14. General Provisions: Standard clauses including governing law, notices, and amendment procedures

Optional Sections

1. Intellectual Property Rights: Required when workers may create or access IP during assignments

2. Non-Solicitation: Optional restrictions on hiring workers directly, used when there's significant investment in worker training

3. Performance Guarantees: Specific service level commitments, used for specialized or high-skill assignments

4. Insurance Requirements: Additional insurance obligations beyond statutory requirements

5. Training and Development: Include when specific training programs are part of the service

6. Transition Services: Required when there's a possibility of contract transfer or termination requiring handover

7. Force Majeure: Specific provisions for unforeseen circumstances, particularly relevant in critical sectors

Suggested Schedules

1. Schedule 1: Fee Schedule: Detailed breakdown of charges, markup rates, and payment terms

2. Schedule 2: Service Specifications: Detailed description of services, worker categories, and performance standards

3. Schedule 3: Worker Categories and Qualifications: Lists of job categories, required qualifications, and experience levels

4. Schedule 4: Compliance Checklist: Detailed regulatory requirements and compliance procedures

5. Schedule 5: Key Performance Indicators: Metrics for measuring service delivery performance

6. Schedule 6: Standard Operating Procedures: Detailed processes for worker management and service delivery

7. Appendix A: Required Forms and Documentation: Templates for worker requests, timesheets, and other routine documentation

8. Appendix B: Health and Safety Requirements: Specific safety procedures and requirements by worker category

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions











































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Relevant Industries

Construction

Manufacturing

Oil and Gas

Information Technology

Healthcare

Hospitality

Retail

Mining

Logistics and Transportation

Facilities Management

Engineering Services

Industrial Services

Relevant Teams

Human Resources

Legal

Procurement

Operations

Compliance

Risk Management

Contract Administration

Workforce Planning

Employee Relations

Health and Safety

Finance

Project Management Office

Relevant Roles

HR Director

Legal Counsel

Procurement Manager

Operations Manager

Compliance Officer

Project Manager

Recruitment Manager

Risk Manager

Contract Administrator

Workforce Planning Manager

Human Resources Business Partner

Labor Relations Manager

Health and Safety Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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