Outsourced Employee Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Outsourced Employee Contract

"I need an Outsourced Employee Contract for a Senior Software Developer position in Riyadh, Saudi Arabia, where the employee will be working remotely 3 days per week for our banking client starting March 2025, with specific provisions for data security and access to financial systems."

Document background
The Outsourced Employee Contract is designed for use in Saudi Arabia when establishing formal employment relationships involving outsourced workers. This document is essential for companies engaging in staff outsourcing arrangements, ensuring compliance with Saudi Labor Law, Wage Protection System requirements, and social insurance regulations. The contract addresses the complex trilateral relationship between the outsourcing company (legal employer), the host company (where services are performed), and the employee. It includes comprehensive provisions covering employment terms, responsibilities, compensation, benefits, and termination procedures, while incorporating necessary protections for all parties involved. This template is particularly relevant in the context of Saudi Vision 2030's economic diversification goals and the increasing use of flexible workforce solutions in the Kingdom.
Suggested Sections

1. Parties: Identifies the three main parties: the outsourcing company (employer), the host company (client), and the employee

2. Background: Explains the context of the outsourcing arrangement and the purpose of the agreement

3. Definitions: Defines key terms used throughout the contract, including 'Services', 'Workplace', 'Working Hours', etc.

4. Term of Employment: Specifies the duration of employment, including start date, probation period, and renewal terms

5. Nature of Work: Details the employee's position, duties, and responsibilities at the host company

6. Place of Work: Specifies the location(s) where services will be performed

7. Working Hours and Days: Defines regular working hours, rest periods, and overtime arrangements as per Saudi Labor Law

8. Remuneration and Benefits: Details salary, allowances, benefits, and payment methods in compliance with WPS

9. Leave Entitlements: Specifies annual leave, sick leave, and other types of leave as per Saudi Labor Law

10. Confidentiality and Data Protection: Outlines obligations regarding confidential information and personal data protection

11. Reporting Structure: Clarifies the dual reporting relationship between host company and outsourcing company

12. Termination: Details grounds and procedures for contract termination, notice periods, and consequences

13. End of Service Benefits: Specifies end of service gratuity calculation and payment terms

14. Governing Law and Jurisdiction: Confirms Saudi Law application and dispute resolution mechanisms

Optional Sections

1. Non-Competition: Include when protecting business interests requires restricting employee's future employment

2. Intellectual Property Rights: Include when employee's work involves creation of IP or access to proprietary technology

3. Training Obligations: Include when specific training requirements or bonds are part of the employment arrangement

4. Performance Metrics: Include when specific KPIs or performance standards are crucial to the role

5. Travel Requirements: Include when position requires domestic or international travel

6. Equipment and Resources: Include when specifying provision and use of specific tools or equipment is necessary

7. Medical Insurance: Include when offering additional medical coverage beyond statutory requirements

Suggested Schedules

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits

3. Schedule 3 - Host Company Policies: Specific policies and procedures of the host company that apply to the employee

4. Schedule 4 - Service Level Agreement: Performance standards and service levels expected from the employee

5. Appendix A - Code of Conduct: Combined code of conduct incorporating both outsourcing and host company requirements

6. Appendix B - Confidentiality Agreement: Detailed confidentiality terms and protected information specifications

7. Appendix C - Employee Handbook Acknowledgment: Confirmation of receipt and understanding of applicable employee handbooks

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

Information Technology

Oil and Gas

Manufacturing

Construction

Healthcare

Financial Services

Telecommunications

Retail

Logistics

Professional Services

Hospitality

Education

Relevant Teams

Human Resources

Legal

Finance

Operations

Project Management Office

Information Technology

Administration

Procurement

Compliance

Risk Management

Relevant Roles

IT Consultant

Project Manager

Software Developer

Business Analyst

Technical Support Specialist

Administrative Assistant

HR Coordinator

Financial Analyst

Customer Service Representative

Operations Manager

Sales Executive

Quality Assurance Specialist

Data Entry Operator

Research Analyst

Marketing Coordinator

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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