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Direct Placement Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Direct Placement Agreement

"I need a Direct Placement Agreement for our tech company in Riyadh, focusing on senior IT roles with a guaranteed replacement period of 6 months, including provisions for international recruitment and remote work arrangements, to be effective from March 2025."

Document background
The Direct Placement Agreement is a crucial document used in Saudi Arabia when companies engage professional recruitment agencies for their hiring needs. This agreement is essential for businesses operating in Saudi Arabia who require assistance in identifying, screening, and placing qualified candidates in their organizations. The document must comply with Saudi Labor Law, MLSD regulations, and Shariah principles, while addressing key aspects such as Saudization requirements, recruitment fees, placement guarantees, and service levels. It's particularly important as it establishes clear responsibilities, protects both parties' interests, and ensures compliance with local regulations. The agreement typically includes specific provisions for candidate replacement, payment terms, and dispute resolution mechanisms that align with Saudi Arabian legal requirements.
Suggested Sections

1. Parties: Identification of the recruitment agency and the client company, including commercial registration details and MLSD license information

2. Background: Context of the agreement, including the client's recruitment needs and the agency's services

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

4. Scope of Services: Detailed description of recruitment and placement services to be provided, including Saudization compliance

5. Agency Obligations: Specific responsibilities of the recruitment agency, including compliance with Saudi labor laws and regulations

6. Client Obligations: Responsibilities of the client company, including provision of accurate job descriptions and requirements

7. Fees and Payment Terms: Fee structure, payment schedule, and currency considerations in compliance with Saudi regulations

8. Compliance with Laws: Commitment to comply with Saudi Labor Law, MLSD regulations, and Shariah principles

9. Confidentiality: Protection of confidential information and compliance with Saudi data protection laws

10. Term and Termination: Duration of the agreement and grounds for termination

11. Dispute Resolution: Process for resolving disputes under Saudi law and jurisdiction

Optional Sections

1. Replacement Guarantee: Terms for replacing candidates who leave or are terminated within a specified period - include when requested by client

2. International Recruitment: Additional provisions for international recruitment services - include when overseas recruitment is involved

3. Volume Discounts: Special pricing for bulk placements - include for large-scale recruitment projects

4. Performance Metrics: Specific KPIs and service levels - include when client requires formal performance measurement

5. Insurance and Indemnity: Enhanced insurance and indemnification provisions - include for high-risk placements

6. Training Services: Additional provisions for candidate training - include when agency provides training services

7. Exclusivity: Terms for exclusive recruitment arrangements - include when exclusive rights are granted

Suggested Schedules

1. Schedule 1 - Fee Schedule: Detailed breakdown of all fees, charges, and payment terms

2. Schedule 2 - Service Specifications: Detailed description of recruitment process and methodology

3. Schedule 3 - Required Documentation: List of required documents for candidates and compliance requirements

4. Schedule 4 - Client Requirements: Specific job descriptions, qualifications, and candidate requirements

5. Appendix A - MLSD Compliance Checklist: Checklist ensuring compliance with Saudi labor regulations

6. Appendix B - Data Protection Protocol: Detailed procedures for handling personal data in compliance with Saudi law

7. Appendix C - Standard Forms: Template forms for candidate submissions, evaluations, and placement confirmations

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

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Relevant Industries

Financial Services

Healthcare

Manufacturing

Technology

Construction

Education

Retail

Oil & Gas

Professional Services

Telecommunications

Hospitality

Transportation & Logistics

Relevant Teams

Human Resources

Legal

Procurement

Operations

Finance

Compliance

Contract Administration

Talent Acquisition

Employee Relations

Relevant Roles

Human Resources Director

Talent Acquisition Manager

Recruitment Specialist

HR Business Partner

Legal Counsel

Procurement Manager

Operations Director

Finance Manager

Compliance Officer

Contract Administrator

HR Operations Manager

Chief Human Resources Officer

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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