Document background
The Salaried Partner Agreement is essential for professional services firms operating in Saudi Arabia who wish to appoint partners while maintaining employment relationship structures. This document type is particularly relevant in the context of Saudi Arabia's evolving professional services sector, where firms must balance traditional partnership structures with local employment law requirements. The agreement covers crucial aspects such as profit sharing, decision-making rights, client relationships, and professional obligations, while ensuring compliance with Saudi Labor Law and Companies Law. It is typically used when promoting senior professionals to partner status without immediately granting equity ownership, serving as either a permanent arrangement or a stepping stone to equity partnership.
