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Non Compete And Independent Contractor Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Non Compete And Independent Contractor Agreement

"I need a Non Compete and Independent Contractor Agreement under Saudi law for engaging a senior IT consultant who will have access to our proprietary software development methodology, with a 2-year non-compete period covering the GCC region, starting from March 2025."

Document background
The Non-Compete And Independent Contractor Agreement is essential for businesses operating in Saudi Arabia who engage external service providers while requiring protection against competitive activities. This document is particularly relevant in the context of Saudi Arabia's evolving business landscape and must comply with both Saudi Labor Law and Competition Law, as well as Sharia principles. It is commonly used when engaging skilled professionals or specialized service providers who will have access to sensitive business information or valuable client relationships. The agreement carefully balances the need to establish a clear independent contractor relationship while implementing enforceable non-compete restrictions. It addresses key concerns such as contractor status, service scope, compensation, intellectual property rights, and competition restrictions, while ensuring alignment with Saudi legal requirements and business practices.
Suggested Sections

1. Parties: Identification of the contracting parties, including full legal names, addresses, and commercial registration details

2. Background: Context of the agreement, nature of the business relationship, and confirmation of independent contractor status

3. Definitions: Key terms used throughout the agreement, including specific Saudi legal terminology

4. Scope of Services: Detailed description of services to be provided by the contractor

5. Independent Contractor Status: Clear establishment of independent contractor relationship and disclaimer of employment relationship

6. Term and Termination: Duration of the agreement and conditions for termination

7. Compensation and Payment Terms: Fee structure, payment schedule, and currency specifications

8. Non-Compete Provisions: Scope, duration, and geographical limitations of non-compete restrictions

9. Confidentiality: Protection of confidential information and trade secrets

10. Intellectual Property Rights: Ownership and usage rights of intellectual property

11. Compliance with Laws: Obligation to comply with Saudi laws and regulations

12. Representations and Warranties: Statements of fact and promises by both parties

13. Indemnification: Protection against losses and liability provisions

14. Dispute Resolution: Mechanism for resolving disputes under Saudi law

15. Governing Law: Specification of Saudi law as governing law

16. General Provisions: Standard clauses including notices, amendments, and severability

Optional Sections

1. Insurance Requirements: Specific insurance coverage requirements, used when services involve higher risk activities

2. Equipment and Resources: Provisions regarding tools and resources, used when specific equipment is required for service delivery

3. Training and Support: Requirements for training or support, used when service delivery requires specific knowledge transfer

4. Performance Metrics: Specific performance standards and KPIs, used for complex service arrangements

5. Subcontracting: Terms for engaging subcontractors, used when subcontracting may be necessary

6. Data Protection: Specific data handling requirements, used when personal or sensitive data is involved

7. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term agreements

8. Non-Solicitation: Additional restrictions on soliciting employees or clients, used when there's specific risk of poaching

9. Zakat and Tax: Tax-related provisions, used when tax implications need specific addressing

10. Shariah Compliance: Specific provisions ensuring Shariah compliance, used when required by the nature of services

Suggested Schedules

1. Schedule 1 - Service Description: Detailed specification of services to be provided

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, payment terms, and billing procedures

3. Schedule 3 - Performance Standards: Specific metrics and standards for service delivery

4. Schedule 4 - Restricted Activities: Detailed list of activities covered by non-compete provisions

5. Schedule 5 - Restricted Territory: Geographical scope of non-compete restrictions

6. Schedule 6 - Key Personnel: List of key individuals involved in service delivery

7. Appendix A - Required Qualifications: Specific qualifications or certifications required

8. Appendix B - Compliance Requirements: Specific regulatory or industry compliance requirements

9. Appendix C - Form of Invoice: Template for invoicing and payment documentation

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

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Relevant Industries

Technology and IT Services

Management Consulting

Professional Services

Engineering and Construction

Healthcare Services

Education and Training

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Real Estate

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Energy and Utilities

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Marketing and Advertising

Relevant Teams

Legal

Human Resources

Executive Leadership

Commercial

Operations

Procurement

Project Management

Business Development

Risk and Compliance

Finance

Administration

Relevant Roles

Legal Counsel

HR Director

Chief Executive Officer

Commercial Director

Operations Manager

Procurement Manager

Project Manager

Business Development Manager

Risk Manager

Compliance Officer

Finance Director

Contract Administrator

General Manager

Department Head

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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