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Contract Hire Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Contract Hire Agreement

"I need a Contract Hire Agreement for a senior software developer position in Riyadh, starting March 2025, with specific provisions for remote work arrangements and intellectual property protection for a technology company."

Document background
The Contract Hire Agreement is a fundamental legal document used in Saudi Arabia to formalize employment relationships between organizations and individuals. This agreement is essential for compliance with Saudi Labor Law and must be drafted in accordance with both civil law requirements and Islamic Sharia principles. The document serves multiple purposes: it protects both employer and employee rights, ensures regulatory compliance, and clearly defines employment terms including compensation, benefits, and obligations. The Contract Hire Agreement is particularly important in the Saudi context due to specific local requirements such as Saudization quotas, mandatory benefits structures, and cultural considerations. It should be maintained in both Arabic and English versions, with the Arabic version prevailing in case of disputes.
Suggested Sections

1. Parties: Identification of the employer and employee with full legal names and details

2. Background: Context of the agreement and brief description of the purpose of the hire

3. Definitions: Key terms used throughout the agreement defined for clarity

4. Term of Employment: Duration of employment, including start date and whether fixed-term or indefinite

5. Position and Duties: Job title, role description, responsibilities, and reporting structure

6. Probation Period: Length and terms of the probationary period as per Saudi Labor Law

7. Compensation and Benefits: Base salary, allowances, and other monetary benefits

8. Working Hours and Location: Standard working hours, overtime provisions, and primary work location

9. Leave Entitlements: Annual leave, sick leave, and other types of leave as per Saudi Labor Law

10. End of Service Benefits: Calculation and payment of end-of-service benefits as per Saudi regulations

11. Termination: Grounds and procedures for contract termination by either party

12. Confidentiality: Obligations regarding company confidential information

13. Non-Competition: Post-employment restrictions on competing activities

14. Governing Law: Specification of Saudi Law and Sharia principles as governing law

15. Dispute Resolution: Process for resolving disputes including reference to labor courts

Optional Sections

1. Housing Allowance Terms: Used when housing allowance or accommodation is provided to the employee

2. Transportation Allowance: Used when specific transportation benefits are provided

3. Medical Insurance: Used when detailing specific medical coverage beyond mandatory requirements

4. Performance Bonus: Used when including variable compensation based on performance

5. Training Requirements: Used when specific training or certification requirements apply to the role

6. Relocation Terms: Used for expatriate employees requiring relocation assistance

7. Commission Structure: Used for sales or commission-based positions

8. Intellectual Property Rights: Used when employee role involves creation of IP

9. Remote Working Provisions: Used when role includes remote working arrangements

Suggested Schedules

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and requirements

2. Schedule 2 - Compensation Structure: Breakdown of salary components and calculation methods

3. Schedule 3 - Company Policies: Reference to applicable company policies and procedures

4. Schedule 4 - Benefits Package: Detailed description of all benefits and allowances

5. Schedule 5 - Performance Metrics: KPIs and performance evaluation criteria

6. Appendix A - Required Documents: List of required documents for employment authorization

7. Appendix B - Code of Conduct: Company's code of conduct and ethical guidelines

8. Appendix C - Safety Procedures: Workplace safety guidelines and procedures

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

Banking & Financial Services

Construction & Engineering

Technology & IT

Healthcare

Manufacturing

Retail

Oil & Gas

Education

Professional Services

Telecommunications

Hospitality & Tourism

Transportation & Logistics

Real Estate

Media & Entertainment

Relevant Teams

Human Resources

Legal

Compliance

Operations

Finance

Administration

Recruitment

Talent Acquisition

Employee Relations

Compensation & Benefits

Relevant Roles

HR Manager

Legal Counsel

Recruitment Manager

Compliance Officer

Operations Manager

Department Head

Project Manager

Finance Director

Sales Manager

Technical Specialist

Administrative Manager

Executive Director

Regional Manager

Business Development Manager

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

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