HR Outsourcing Contract Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

HR Outsourcing Contract Agreement

"I need an HR Outsourcing Contract Agreement under Saudi Arabian law for my manufacturing company to outsource all HR functions to a third-party provider starting March 2025, with special focus on Saudization compliance and employee data protection requirements."

Document background
The HR Outsourcing Contract Agreement serves as a crucial legal framework for companies operating in Saudi Arabia who wish to delegate their human resources functions to specialized service providers. This document is essential when organizations seek to optimize their HR operations while ensuring compliance with Saudi labor laws, Saudization requirements, and other local regulations. The agreement comprehensively covers service scope, performance standards, data protection, compliance requirements, and commercial terms. It is particularly relevant in the context of Saudi Vision 2030's emphasis on private sector development and workforce optimization. The document typically includes detailed provisions for managing employee data, handling recruitment, payroll, benefits administration, and other HR functions while maintaining alignment with Saudi Arabian legal requirements and business practices.
Suggested Sections

1. Parties: Identification of the service provider (HR outsourcing company) and the client company, including their full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement, including the client's desire to outsource HR functions and the provider's expertise and capabilities

3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Services', 'Deliverables', 'Confidential Information', etc.

4. Scope of Services: Comprehensive description of HR services to be provided, including core responsibilities and deliverables

5. Service Provider's Obligations: Detailed obligations of the HR service provider, including service standards, reporting requirements, and compliance commitments

6. Client's Obligations: Client's responsibilities, including providing necessary information, access, and cooperation

7. Term and Termination: Duration of the agreement, renewal terms, and circumstances for termination

8. Fees and Payment Terms: Detailed fee structure, payment schedule, and invoicing requirements

9. Compliance with Laws: Obligations to comply with Saudi labor laws, Saudization requirements, and other relevant regulations

10. Confidentiality: Provisions for protecting confidential information and data privacy

11. Data Protection: Specific provisions for handling employee data in compliance with Saudi data protection requirements

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

13. Insurance: Required insurance coverage for both parties

14. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

15. General Provisions: Standard clauses including force majeure, notices, amendments, and assignment

Optional Sections

1. Transition Services: Details of transition arrangements when taking over HR functions from client's internal team or another provider

2. Performance Metrics: Specific KPIs and service level agreements, used when detailed performance measurement is required

3. Specialized HR Programs: Additional provisions for specialized services like training programs or recruitment campaigns

4. Intellectual Property Rights: Provisions for IP ownership when the services involve development of HR tools or materials

5. Business Continuity: Provisions for ensuring continuous service delivery during disruptions

6. Exit Management: Detailed procedures for service transition at contract end, included for complex long-term arrangements

7. Subcontracting: Terms governing the use of subcontractors, if permitted

8. Change Control: Procedures for managing changes to services or terms, useful for long-term contracts

Suggested Schedules

1. Schedule 1: Detailed Service Description: Comprehensive list and description of all HR services to be provided

2. Schedule 2: Service Levels and KPIs: Detailed performance metrics, measurement methods, and reporting requirements

3. Schedule 3: Fee Schedule: Detailed breakdown of fees, pricing structure, and payment terms

4. Schedule 4: Implementation Plan: Timeline and milestones for service implementation

5. Schedule 5: Key Personnel: List of key personnel from both parties responsible for contract management

6. Schedule 6: Data Processing Agreement: Detailed terms for handling personal data in compliance with Saudi regulations

7. Schedule 7: Operational Procedures: Day-to-day operational procedures and protocols

8. Appendix A: Required Reports: Templates and specifications for regular reporting

9. Appendix B: Security Requirements: IT and physical security requirements for handling client data

10. Appendix C: Compliance Checklist: Checklist of regulatory requirements and compliance measures

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

Manufacturing

Technology

Healthcare

Retail

Construction

Financial Services

Education

Hospitality

Logistics

Energy

Telecommunications

Professional Services

Real Estate

Mining

Agriculture

Relevant Teams

Human Resources

Legal

Operations

Procurement

Compliance

Finance

Risk Management

Executive Leadership

Administration

Business Development

Contract Management

Relevant Roles

HR Director

Legal Counsel

Chief Operating Officer

Procurement Manager

Compliance Officer

Chief Financial Officer

HR Operations Manager

Business Development Manager

Contract Manager

Risk Manager

Chief Executive Officer

HR Outsourcing Manager

General Counsel

Administrative Director

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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