Consultancy Agreement Between Company And Individual Template for Saudi Arabia

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Key Requirements PROMPT example:

Consultancy Agreement Between Company And Individual

"I need a Consultancy Agreement Between Company And Individual under Saudi law for a cybersecurity consultant who will be working on our proprietary software systems starting March 2025; the agreement needs strong IP protection and data security provisions."

Document background
The Consultancy Agreement Between Company And Individual is a crucial document for businesses operating in Saudi Arabia that need to engage independent professional expertise while maintaining compliance with local laws and regulations. This agreement is specifically designed to establish a clear commercial relationship that differs from employment, addressing key aspects such as service scope, compensation, intellectual property rights, and confidentiality. It incorporates necessary provisions to comply with Saudi Arabian commercial law, Sharia principles, and relevant regulations including tax and zakat requirements. The document is particularly important given the increasing reliance on specialist consultants in the Saudi market and the need to properly structure these relationships to avoid legal complications. It provides a framework that protects both parties' interests while ensuring clarity in their professional relationship.
Suggested Sections

1. Parties: Identification of the company and the individual consultant, including full legal names and addresses

2. Background: Context of the agreement, nature of the company's business, and general purpose of engaging the consultant

3. Definitions: Key terms used throughout the agreement, ensuring clarity and consistent interpretation

4. Appointment and Scope of Services: Formal appointment of consultant and detailed description of services to be provided

5. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination

6. Consultant's Obligations: Key responsibilities, deliverables, performance standards, and compliance requirements

7. Company's Obligations: Company's responsibilities, including provision of information, access, and support

8. Fees and Payment Terms: Compensation structure, payment schedule, expenses, and tax considerations

9. Independent Contractor Status: Clear statement of consultant's status as independent contractor, not an employee

10. Intellectual Property Rights: Ownership and rights regarding work products, pre-existing IP, and related matters

11. Confidentiality: Protection of confidential information, trade secrets, and business data

12. Data Protection: Compliance with Saudi data protection laws and handling of personal information

13. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations

14. General Provisions: Standard legal clauses including notices, amendments, governing law, and dispute resolution

Optional Sections

1. Non-Competition: Restrictions on consultant's competitive activities - include when protecting market position is crucial

2. Non-Solicitation: Restrictions on soliciting clients/employees - use when protecting business relationships is important

3. Insurance: Insurance requirements for consultant - include for high-risk or regulated services

4. Performance Metrics: Specific KPIs and performance standards - use for complex or results-driven engagements

5. Compliance with Specific Regulations: Industry-specific regulatory requirements - include for regulated sectors

6. Force Majeure: Provisions for unforeseen circumstances - important for long-term or critical services

7. Assignment and Subcontracting: Rights to transfer or delegate obligations - include when flexibility might be needed

8. Religious Observance: Accommodation of religious practices - include when relevant to service delivery

9. Training and Knowledge Transfer: Requirements for training company staff - include when knowledge transfer is important

10. Exit Management: Detailed transition provisions - use for complex or integrated services

Suggested Schedules

1. Schedule 1 - Scope of Services: Detailed description of services, deliverables, and specifications

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, payment terms, and expense policies

3. Schedule 3 - Service Levels: Performance standards, metrics, and quality requirements

4. Schedule 4 - Company Policies: Relevant company policies consultant must comply with

5. Schedule 5 - Approved Subcontractors: List of pre-approved subcontractors if applicable

6. Appendix A - Required Reports: Templates and requirements for progress/status reporting

7. Appendix B - Contact Details: Key contact persons and communication protocols

8. Appendix C - Compliance Checklist: Regulatory and policy compliance requirements

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

Clauses
Relevant Industries

Information Technology

Management Consulting

Financial Services

Healthcare

Education

Energy and Oil & Gas

Construction

Manufacturing

Telecommunications

Professional Services

Real Estate

Environmental Services

Engineering

Media and Entertainment

Retail

Relevant Teams

Legal

Human Resources

Procurement

Contract Management

Project Management Office

Finance

Compliance

Risk Management

Operations

Business Development

Relevant Roles

Legal Counsel

Human Resources Director

Procurement Manager

Contract Manager

Project Manager

Business Development Manager

Operations Director

Finance Manager

Compliance Officer

Risk Manager

Department Head

Chief Executive Officer

Chief Financial Officer

Chief Operating Officer

Managing Director

Industries
Saudi Labor Law (Royal Decree No. M/51): Defines employment relationships and helps distinguish between employees and independent contractors/consultants. Important for ensuring the agreement doesn't create an unintended employment relationship.
Commercial Courts Law (Royal Decree No. M/93): Governs commercial transactions and business relationships, including contract formation, enforcement, and dispute resolution mechanisms.
Income Tax Law (Royal Decree No. M/1): Regulates tax obligations for consultancy services, including withholding tax requirements for payments to consultants.
Zakat, Tax and Customs Authority (ZATCA) Regulations: Governs Zakat (religious levy) obligations and VAT requirements applicable to consultancy services.
Law of Commercial Courts (Royal Decree No. M/93): Provides framework for resolving commercial disputes and enforcing contractual obligations.
Saudi Law of Commercial Agencies: May be relevant if the consultant acts as an agent or representative of the company in certain capacities.
Intellectual Property Laws (including Royal Decree No. M/27): Protects intellectual property rights and governs ownership of work products created during consultancy.
Anti-Commercial Fraud Law: Ensures transparency and prevents fraudulent practices in commercial relationships.
Personal Data Protection Law (PDPL): Regulates the collection, processing, and protection of personal data, relevant for confidentiality clauses.
Sharia Law Principles: Fundamental Islamic legal principles that underpin all contracts in Saudi Arabia, ensuring compliance with Islamic ethics and values.
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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