Employee Lease Agreement Template for Saudi Arabia

Employee Lease Agreements are essential documents in Saudi Arabia's business landscape where companies need to temporarily transfer employees while maintaining their original employment relationship. This arrangement is particularly useful for projects requiring specialized expertise, temporary staffing needs, or group-wide resource optimization. The Employee Lease Agreement must comply with Saudi Labor Law, MHRSD regulations, and Saudization requirements while clearly defining the roles and responsibilities of the original employer, host company, and employee. The document typically includes provisions for compensation, benefits, working conditions, and termination rights, along with specific clauses addressing Saudi Arabian regulatory requirements such as GOSI registration and wage protection system compliance. This type of agreement is commonly used in project-based industries, consulting arrangements, and situations where specialized skills are needed for a defined period.

1. Parties: Identification of the three parties: original employer (lessor), receiving company (lessee), and the employee(s)

2. Background: Context of the agreement including the purpose of the employee lease arrangement

3. Definitions: Key terms used throughout the agreement including 'Secondment Period', 'Services', 'Secondment Fee', etc.

4. Term and Duration: Specific period of the secondment, including start date, end date, and any renewal provisions

5. Scope of Services: Detailed description of the services to be provided by the seconded employee(s)

6. Responsibilities of the Lessor: Original employer's obligations including maintaining employment relationship, primary salary payment, etc.

7. Responsibilities of the Lessee: Receiving company's obligations including day-to-day supervision, workplace safety, etc.

8. Employee Rights and Obligations: Duties and rights of the seconded employee during the secondment period

9. Compensation and Benefits: Details of salary, benefits, and how they will be handled between parties

10. Secondment Fees: Fees payable by the lessee to the lessor for the secondment arrangement

11. Working Hours and Leave: Specification of working hours, vacation, sick leave and other leave entitlements

12. Confidentiality: Provisions regarding confidential information protection

13. Intellectual Property: Ownership and rights to work product created during secondment

14. Termination: Circumstances and process for early termination of the secondment

15. Governing Law and Jurisdiction: Specification of Saudi law as governing law and dispute resolution mechanisms