Employment Agency Agreement Template for Saudi Arabia

The Employment Agency Agreement is essential for businesses operating in Saudi Arabia that require professional recruitment services. This document establishes the legal framework for recruitment activities while ensuring compliance with Saudi Arabian labor laws, MLSD regulations, and Saudization requirements. It is typically used when a company needs to engage a licensed recruitment agency for hiring employees, whether for permanent positions or contract roles. The agreement covers crucial aspects such as service scope, fee structures, compliance requirements, and liability provisions, while incorporating specific Saudi Arabian regulatory requirements for recruitment agencies. It's particularly important given the complex nature of Saudi Arabian employment regulations and the need for proper documentation of recruitment relationships.

1. Parties: Identification of the Employment Agency and the Client Company, including their full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement, including the Agency's licensing status and the Client's need for recruitment services

3. Definitions: Key terms used throughout the agreement, including 'Candidates', 'Placement', 'Recruitment Services', and other relevant terminology

4. Scope of Services: Detailed description of recruitment services to be provided, including candidate sourcing, screening, and placement processes

5. Agency Obligations: The Agency's responsibilities, including compliance with Saudi labor laws, verification of candidates' qualifications, and maintaining necessary licenses

6. Client Obligations: The Client's responsibilities, including providing accurate job descriptions, timely feedback, and maintaining Saudization requirements

7. Fees and Payment Terms: Detailed fee structure, payment schedules, and terms including VAT requirements

8. Compliance with Laws: Specific provisions ensuring compliance with Saudi Labor Law, recruitment regulations, and other applicable laws

9. Confidentiality: Protection of confidential information and trade secrets shared during the recruitment process

10. Data Protection: Compliance with Saudi Arabian data protection laws regarding candidate and client information

11. Term and Termination: Duration of the agreement and conditions for termination

12. Liability and Indemnification: Allocation of risks and responsibilities between parties

13. Dispute Resolution: Process for resolving disputes under Saudi Arabian law

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