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Employee Covenant Agreement for Saudi Arabia

Employee Covenant Agreement Template for Saudi Arabia

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Employee Covenant Agreement

"I need an Employee Covenant Agreement for a senior software developer in our Saudi Arabian tech company, with strong emphasis on protecting our source code and development methodologies, and including specific provisions for remote work arrangements starting March 2025."

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What is a Employee Covenant Agreement?

The Employee Covenant Agreement is a critical legal document used in Saudi Arabia to establish and protect an organization's confidential information, trade secrets, and competitive advantages. This agreement is typically implemented at the start of employment or when an employee gains access to sensitive information, establishing clear obligations regarding confidentiality, non-competition, and intellectual property rights. The document must comply with Saudi Labor Law and Shari'ah principles, particularly regarding the scope and duration of restrictive covenants. It's essential for roles involving access to proprietary information, client relationships, or strategic business operations. The agreement includes specific provisions for post-employment obligations, protection of company assets, and remedies for breach, all structured within the Saudi Arabian legal framework.

What sections should be included in a Employee Covenant Agreement?

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Context of the agreement, including the employee's role and reason for the covenant

3. Definitions: Key terms used throughout the agreement, including 'Confidential Information', 'Intellectual Property', 'Competing Business', etc.

4. Confidentiality Obligations: Details of the employee's obligations regarding confidential information, including scope and duration

5. Non-Competition: Terms of non-compete restrictions, including geographic scope and duration, in compliance with Saudi law

6. Non-Solicitation: Restrictions on soliciting employees, customers, or suppliers

7. Intellectual Property Rights: Assignment and protection of IP created during employment

8. Return of Company Property: Obligations regarding return of company property upon termination

9. Duration and Survival: Term of the agreement and which provisions survive employment termination

10. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for disputes

11. General Provisions: Standard clauses including severability, entire agreement, and amendments

What sections are optional to include in a Employee Covenant Agreement?

1. Garden Leave: Provisions for placing employee on paid leave during notice period - include for senior roles

2. International Travel: Special provisions for employees who travel internationally for work

3. Training Compensation: Provisions for recovering training costs if employee leaves within specified period

4. Social Media Usage: Guidelines for social media use and protection of company reputation - relevant for customer-facing roles

5. Post-Employment Cooperation: Requirements for cooperation in litigation or investigations after employment ends - important for senior positions

6. Moral Rights Waiver: Waiver of moral rights in created works - relevant for creative roles

7. Remote Work Provisions: Special provisions for employees working remotely regarding confidentiality and security

What schedules should be included in a Employee Covenant Agreement?

1. Schedule 1 - Restricted Activities: Detailed list of specific activities the employee is restricted from engaging in

2. Schedule 2 - Competing Businesses: List of specific competitors or competing business types

3. Schedule 3 - Confidential Information: Detailed categorization of what constitutes confidential information

4. Schedule 4 - Company Property: Inventory of company property provided to employee

5. Appendix A - Acknowledgment Form: Form for employee to acknowledge receipt and understanding of the agreement

6. Appendix B - Exit Interview Checklist: Checklist for ensuring compliance with covenant obligations upon termination

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

Technology

Financial Services

Healthcare

Professional Services

Manufacturing

Telecommunications

Research and Development

Pharmaceuticals

Energy

Defense

Consulting

Retail

Education

Media and Entertainment

Engineering

Relevant Teams

Legal

Human Resources

Executive Leadership

Research & Development

Sales

Information Technology

Finance

Operations

Marketing

Product Development

Business Development

Customer Success

Engineering

Data Analytics

Strategic Planning

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Software Engineer

Research Scientist

Sales Director

Product Manager

Financial Controller

Business Development Manager

Human Resources Director

Operations Manager

Legal Counsel

Data Scientist

Project Manager

Account Executive

Marketing Director

Systems Architect

Department Head

Regional Manager

Technical Lead

Management Consultant

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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