Placement Agency Agreement Template for Saudi Arabia

The Placement Agency Agreement is a crucial document used when a company in Saudi Arabia engages a professional recruitment agency to assist with their hiring needs. This agreement is essential for compliance with Saudi Arabian labor laws and recruitment regulations, particularly the requirements set forth by the Ministry of Labor and Social Development. The document establishes the framework for the recruitment relationship, including detailed service specifications, fee structures, and compliance requirements. It's particularly important in the Saudi Arabian context due to specific regulatory requirements such as Saudization quotas, recruitment agency licensing, and international recruitment regulations. The agreement protects both parties by clearly defining responsibilities, payment terms, and service expectations while ensuring adherence to local legal requirements.

1. Parties: Identification of the placement agency and the client company, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement, including the agency's licensing status and the client's recruitment needs

3. Definitions: Key terms used throughout the agreement, including 'Candidates', 'Placement Services', 'Successful Placement', etc.

4. Scope of Services: Detailed description of recruitment services to be provided, including search, screening, and placement processes

5. Agency Obligations: Specific responsibilities of the placement agency, including compliance with Saudi labor laws and recruitment regulations

6. Client Obligations: Client's responsibilities, including providing accurate job descriptions, timely feedback, and necessary documentation

7. Fees and Payment Terms: Structure of placement fees, payment schedules, and conditions for fee payment

8. Replacement Guarantee: Terms for candidate replacement if placed candidate leaves within specified period

9. Confidentiality: Obligations regarding confidential information and candidate data protection

10. Term and Termination: Duration of agreement and circumstances for termination

11. Warranties and Indemnities: Guarantees provided by both parties and indemnification obligations

12. General Provisions: Standard clauses including notices, amendments, governing law, etc.