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.
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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
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
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
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