The No Employment Contract is designed for use in Saudi Arabia when organizations need to engage independent contractors, consultants, or freelancers while maintaining clear legal separation from employment relationships. This document is crucial in the Saudi business environment where proper classification of working relationships is strictly regulated. It includes specific provisions required under Saudi Labor Law (Royal Decree No. M/51), Commercial Law, and Sharia principles to establish a legitimate independent contractor relationship. The agreement is particularly relevant in today's gig economy and project-based business environment, where companies frequently need specialized external expertise without creating permanent employment relationships. It helps both parties understand their rights, obligations, and the temporary or project-based nature of their professional relationship while ensuring compliance with local regulations.
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Key Requirements PROMPT example:
No Employment Contract
"I need a No Employment Contract for a software development consultant who will work on our AI project from March 2025 to December 2025, with clear deliverables and milestone-based payments; the contract must include robust IP protection clauses and allow for remote work."
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1. Parties: Details of the contracting parties, including full legal names, addresses, and commercial registration numbers
2. Background: Context of the agreement and confirmation that this is not an employment relationship
3. Definitions: Key terms used throughout the agreement
4. Nature of Relationship: Clear statement that this is an independent contractor relationship, not employment
5. Scope of Services: Detailed description of services to be provided
6. Term and Termination: Duration of the agreement and termination provisions
7. Compensation and Payment Terms: Fee structure, payment schedule, and invoicing requirements
8. Independent Contractor Obligations: Contractor's responsibilities, including maintaining own business, insurance, and tax obligations
9. Client Obligations: Client's responsibilities and commitments
10. Intellectual Property Rights: Ownership and usage rights of any IP created during the service
11. Confidentiality: Protection of confidential information and trade secrets
12. Compliance with Laws: Obligation to comply with Saudi laws and regulations
13. Dispute Resolution: Process for resolving disputes under Saudi law
14. General Provisions: Standard legal clauses including notices, amendments, and governing law
1. Equipment and Resources: Used when specific equipment or resources are provided by either party
2. Performance Metrics: Include when specific performance standards or KPIs are required
3. Non-Compete: Added when contractor is restricted from working with competitors
4. Insurance Requirements: Detailed insurance obligations when services involve high-risk activities
5. Warranties and Indemnities: Enhanced protections when services involve significant risk or value
6. Subcontracting: Include when contractor may need to engage subcontractors
7. Force Majeure: Added when services might be impacted by external events
8. Data Protection: Required when personal or sensitive data processing is involved
1. Schedule 1 - Scope of Services: Detailed breakdown of services, deliverables, and timelines
2. Schedule 2 - Fee Schedule: Detailed fee structure, rates, and payment terms
3. Schedule 3 - Service Levels: Performance standards and metrics if applicable
4. Schedule 4 - Key Personnel: Details of key individuals providing services if relevant
5. Appendix A - Required Certifications: Copies of necessary business licenses and certifications
6. Appendix B - Insurance Requirements: Specific insurance coverage requirements and limits
Authors
Relevant legal definitions
Agreement
Services
Deliverables
Independent Contractor
Client
Fees
Intellectual Property Rights
Confidential Information
Force Majeure
Business Day
Effective Date
Term
Project
Specifications
Service Levels
Applicable Laws
Commercial Registration
Representatives
Sharia Compliant
Good Industry Practice
Material Breach
Payment Terms
Project Schedule
Quality Standards
Scope of Work
Territory
Working Hours
Zakat
VAT
Governmental Authority
Dispute Resolution Committee
Contractor Materials
Client Materials
Background IP
Foreground IP
Affiliate
Change Order
Completion Date
Milestone
Performance Standards
Key Personnel
Services
Deliverables
Independent Contractor
Client
Fees
Intellectual Property Rights
Confidential Information
Force Majeure
Business Day
Effective Date
Term
Project
Specifications
Service Levels
Applicable Laws
Commercial Registration
Representatives
Sharia Compliant
Good Industry Practice
Material Breach
Payment Terms
Project Schedule
Quality Standards
Scope of Work
Territory
Working Hours
Zakat
VAT
Governmental Authority
Dispute Resolution Committee
Contractor Materials
Client Materials
Background IP
Foreground IP
Affiliate
Change Order
Completion Date
Milestone
Performance Standards
Key Personnel
Clauses
Parties
Interpretation
Definitions
Independent Contractor Status
Scope of Services
Term and Duration
Payment Terms
Invoicing
Performance Standards
Contractor Obligations
Client Obligations
No Employment Relationship
Intellectual Property
Confidentiality
Data Protection
Non-Compete
Non-Solicitation
Warranties
Indemnification
Insurance
Termination
Force Majeure
Assignment
Subcontracting
Notices
Amendments
Waiver
Severability
Entire Agreement
Governing Law
Dispute Resolution
Compliance with Laws
Anti-Bribery
Records and Audit
Tax Obligations
Relationship of Parties
Authority to Contract
Business Registration
Health and Safety
Equipment and Materials
Representations
Time of Essence
Language
Counterparts
Interpretation
Definitions
Independent Contractor Status
Scope of Services
Term and Duration
Payment Terms
Invoicing
Performance Standards
Contractor Obligations
Client Obligations
No Employment Relationship
Intellectual Property
Confidentiality
Data Protection
Non-Compete
Non-Solicitation
Warranties
Indemnification
Insurance
Termination
Force Majeure
Assignment
Subcontracting
Notices
Amendments
Waiver
Severability
Entire Agreement
Governing Law
Dispute Resolution
Compliance with Laws
Anti-Bribery
Records and Audit
Tax Obligations
Relationship of Parties
Authority to Contract
Business Registration
Health and Safety
Equipment and Materials
Representations
Time of Essence
Language
Counterparts
Relevant Industries
Technology
Construction
Professional Services
Healthcare
Education
Media and Entertainment
Financial Services
Manufacturing
Real Estate
Energy and Utilities
Consulting
Retail
Telecommunications
Relevant Teams
Legal
Human Resources
Procurement
Finance
Operations
Compliance
Risk Management
Project Management Office
Business Development
Administration
Relevant Roles
Chief Executive Officer
Legal Counsel
Human Resources Director
Procurement Manager
Project Manager
Operations Director
Finance Manager
Department Head
Business Unit Manager
Contracts Administrator
Risk Manager
Compliance Officer
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