Assignment Of Employment Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Assignment Of Employment Agreement

"I need an Assignment of Employment Agreement under Saudi law to transfer 50 employees from our existing company to our newly formed subsidiary as part of our corporate restructuring, with the transfer to take effect from March 1, 2025."

Document background
The Assignment Of Employment Agreement is a crucial document used in Saudi Arabia when transferring an employee's employment contract from one employer to another, typically during corporate restructuring, acquisitions, or internal group transfers. It ensures compliance with the Saudi Labor Law (Royal Decree No. M/51) and related regulations while protecting the rights of all parties involved. This document is essential for maintaining the continuity of employment relationships, preserving employee benefits, and ensuring proper transfer of obligations between employers. It must address specific Saudi regulatory requirements, including Saudization (Nitaqat) compliance, GOSI registration, and for expatriate employees, sponsorship transfer procedures. The agreement typically includes comprehensive details about the transfer terms, preserved rights, and any modifications to the employment relationship, all within the framework of Saudi Arabian employment law.
Suggested Sections

1. Parties: Identification of the Current Employer (Assignor), New Employer (Assignee), and Employee

2. Background: Context of the current employment relationship and reason for assignment

3. Definitions: Key terms used throughout the agreement including Effective Date, Original Employment Agreement, and Assignment

4. Assignment and Acceptance: Core provision transferring the employment agreement from Assignor to Assignee

5. Effective Date: Specification of when the assignment takes effect

6. Employee Consent: Documentation of employee's agreement to the assignment as required by Saudi Labor Law

7. Continuation of Employment Terms: Confirmation that existing employment terms and conditions remain unchanged

8. Transfer of Rights and Obligations: Detailed provisions on transfer of employer obligations and employee rights

9. End of Service Benefits: Handling of accrued benefits and future benefit calculations

10. Governing Law and Jurisdiction: Confirmation of Saudi Law application and dispute resolution process

11. Execution: Signature blocks for all three parties

Optional Sections

1. Visa and Work Permit Arrangements: Required for non-Saudi employees, detailing transfer of sponsorship

2. Non-competition and Confidentiality: Additional restrictions if not covered in original employment agreement

3. Saudization Compliance: Required when assignment affects company's Nitaqat status

4. Group Benefits and Insurance: Required when transferring between group companies with different benefit schemes

5. Transitional Provisions: Required when phased transfer of responsibilities is planned

6. Inter-company Charges: Required when assignment involves cost sharing between group companies

Suggested Schedules

1. Schedule 1 - Original Employment Agreement: Copy of the current employment agreement being assigned

2. Schedule 2 - Employee Benefits Statement: Statement of accrued benefits and entitlements as of assignment date

3. Schedule 3 - Required Governmental Approvals: List of necessary regulatory approvals and their status

4. Appendix A - Employee Information: Detailed employee information including position, salary, and benefits

5. Appendix B - Assignment Terms: Specific terms of assignment including any variations from original agreement

6. Appendix C - Handover Plan: Timeline and process for transitioning employment responsibilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Manufacturing

Oil and Gas

Construction

Technology

Healthcare

Retail

Professional Services

Education

Telecommunications

Hospitality

Transportation and Logistics

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Personnel Administration

Compensation and Benefits

Senior Management

Operations

Administration

Corporate Governance

Relevant Roles

Human Resources Director

Legal Counsel

Compliance Officer

HR Manager

Employee Relations Manager

Compensation and Benefits Manager

Recruitment Manager

Operations Director

Chief Executive Officer

Chief Human Resources Officer

Legal Director

Personnel Manager

HR Business Partner

Talent Acquisition Manager

Administrative 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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