Placement Contract Agreement Template for Saudi Arabia

The Placement Contract Agreement is essential for companies operating in Saudi Arabia that engage recruitment agencies for their hiring needs. This document establishes the legal framework for the recruitment relationship, ensuring compliance with Saudi Arabian Labor Law, recruitment regulations, and Saudization requirements. It is particularly crucial given the complex regulatory environment in Saudi Arabia, where specific rules govern recruitment practices, employment of foreign workers, and local hiring quotas. The agreement typically covers all aspects of the placement process, from initial candidate search to successful placement and warranty periods, while incorporating necessary provisions for fees, responsibilities, and dispute resolution under Saudi jurisdiction. This document is fundamental for protecting both the placement agency's and client's interests while ensuring transparent and compliant recruitment practices.

1. Parties: Identification of the contracting parties - 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 client's recruitment needs and the agency's services offering

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

4. Scope of Services: Detailed description of placement services to be provided, including recruitment, screening, and candidate presentation 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 cooperation with the placement process

7. Fees and Payment Terms: Detailed fee structure, payment schedule, and conditions for fee payment upon successful placement

8. Successful Placement Criteria: Definition of what constitutes a successful placement and when fees become payable

9. Warranty Period: Duration of replacement guarantee and conditions for replacement candidates

10. Confidentiality: Provisions for protecting confidential information exchanged during the recruitment process

11. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

12. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for dispute resolution