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Construction Labor Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Construction Labor Agreement

"I need a Construction Labor Agreement for hiring 50 skilled workers from the Philippines for a large commercial building project in Riyadh starting March 2025, with specific provisions for accommodation and transportation."

Document background
The Construction Labor Agreement is essential for construction projects in Saudi Arabia, where it serves as the primary document governing the employment relationship between construction companies and their workers. This agreement is specifically designed to comply with Saudi Labor Law, construction industry regulations, and Sharia principles, while addressing the unique challenges of construction work in the region. It should be used when hiring both local and foreign construction workers, incorporating mandatory requirements such as working hours, wage protection systems, and safety standards. The agreement includes provisions for GOSI registration, work permit requirements for foreign workers, and Saudization compliance. Construction companies operating in Saudi Arabia must ensure this agreement is in place before commencing employment relationships, as it provides legal protection for both employers and employees while satisfying regulatory requirements.
Suggested Sections

1. Parties: Identification of the employer and employee, including all relevant registration/license numbers and contact details

2. Background: Context of the agreement, including the construction project context and basis for employment

3. Definitions: Key terms used throughout the agreement, including project-specific terminology and legal definitions

4. Term of Employment: Duration of employment, including probationary period and renewal terms

5. Scope of Work: Detailed description of employee's roles, responsibilities, and reporting structure

6. Compensation and Benefits: Base salary, allowances, overtime rates, and other benefits as per Saudi Labor Law

7. Working Hours and Days: Standard working hours, break times, and provisions for Ramadan working hours

8. Leave Entitlements: Annual leave, sick leave, Hajj leave, and other statutory leave entitlements

9. Health and Safety: Safety protocols, PPE requirements, and compliance with construction safety regulations

10. Termination: Grounds for termination, notice periods, and end-of-service benefits

11. Confidentiality: Protection of employer's confidential information and trade secrets

12. Governing Law: Confirmation of Saudi Law application and dispute resolution mechanisms

Optional Sections

1. Accommodation and Transportation: Used when employer provides housing or transport facilities to workers

2. Training and Development: Include when specific training programs or certifications are required

3. Performance Metrics: Add when specific performance standards and evaluation criteria are needed

4. Site Mobility: Include when workers may be required to work across multiple construction sites

5. Tools and Equipment: Use when specifying employer-provided equipment and worker responsibilities

6. Non-Competition: Include for skilled workers or supervisory positions where relevant

7. Insurance Coverage: Additional insurance coverage beyond statutory requirements

Suggested Schedules

1. Schedule A - Compensation Details: Detailed breakdown of salary components, allowances, and benefits

2. Schedule B - Job Description: Detailed description of duties, responsibilities, and required qualifications

3. Schedule C - Safety Procedures: Specific safety protocols and procedures for the construction site

4. Schedule D - Working Hours Schedule: Detailed work schedules including shift patterns if applicable

5. Schedule E - Company Policies: Reference to applicable company policies and procedures

6. Appendix 1 - Required Certifications: List of mandatory certifications and qualifications for the role

7. Appendix 2 - Equipment Checklist: List of tools and equipment provided/required for the role

8. Appendix 3 - Site Rules: Specific rules and regulations for the construction site

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 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

Infrastructure Development

Real Estate Development

Civil Engineering

Industrial Construction

Residential Construction

Commercial Construction

Public Works

Mining Construction

Oil and Gas Construction

Transportation Infrastructure

Relevant Teams

Human Resources

Legal

Operations

Health and Safety

Project Management

Compliance

Recruitment

Training and Development

Site Operations

Quality Control

Risk Management

Relevant Roles

Construction Worker

Site Supervisor

Project Manager

Safety Inspector

Construction Engineer

Crane Operator

Electrician

Plumber

Carpenter

Mason

Heavy Equipment Operator

Scaffolder

Steel Fixer

Construction Foreman

Quality Control Inspector

Site Engineer

Construction Technician

Welder

Construction Laborer

Building Services Engineer

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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