Labour Hire Agreement Template for Saudi Arabia

This Labour Hire Agreement is essential for businesses operating in Saudi Arabia that require temporary or flexible workforce solutions. The document is designed to comply with Saudi Arabian labor laws and regulations, including crucial requirements such as Saudization quotas, GOSI registration, and the Wage Protection System. It establishes a clear framework for the three-way relationship between the labor hire provider, client company, and assigned workers, detailing responsibilities for worker supervision, payment arrangements, and regulatory compliance. The agreement is particularly important given the complex regulatory environment in Saudi Arabia and the need to properly document temporary labor arrangements to satisfy government authorities.

1. Parties: Identification of the labor hire company (provider), the client company (hirer), and their respective details

2. Background: Context of the agreement, including the provider's authority to supply labor and the client's need for workers

3. Definitions: Key terms used throughout the agreement, including 'Assigned Workers', 'Services', 'Assignment', 'Charges', etc.

4. Scope of Services: Details of labor hire services, including types of workers to be provided and general duties

5. Term: Duration of the agreement and renewal provisions

6. Provider Obligations: Provider's responsibilities including worker screening, compliance with labor laws, Saudization requirements, and GOSI registration

7. Client Obligations: Client's responsibilities regarding worker supervision, workplace safety, and cooperation with provider

8. Worker Management: Processes for worker assignment, replacement, and performance management

9. Charges and Payment: Fee structure, payment terms, and compliance with Wage Protection System

10. Workplace Health and Safety: Safety obligations and compliance with Saudi workplace safety regulations

11. Confidentiality: Protection of confidential information between all parties

12. Insurance and Liability: Insurance requirements and allocation of risks between parties

13. Termination: Grounds and process for termination, including notice periods

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