Placement Fee Agreement Template for Saudi Arabia

The Placement Fee Agreement is a crucial document for businesses operating in Saudi Arabia that need to engage professional recruitment services. This agreement is particularly relevant in the context of Saudi Arabia's dynamic labor market, where companies must navigate complex regulatory requirements including Saudization quotas and MHRSD regulations. The document establishes the commercial and legal framework for recruitment services, detailing placement fees, service expectations, and compliance obligations. It is essential for protecting both the recruitment agency's right to compensation and the client company's interests in securing qualified candidates. The agreement typically includes provisions for candidate replacement, payment terms, and specific service level commitments, all while ensuring alignment with Saudi Arabian labor laws and Islamic Sharia principles.

1. Parties: Identification of the recruitment agency and the client company, including their 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 'Candidate', 'Placement', 'Successful Placement', 'Recruitment Services', and 'Placement Fee'

4. Scope of Services: Detailed description of recruitment services to be provided, including candidate sourcing, screening, and presentation processes

5. Fee Structure and Payment Terms: Comprehensive details of placement fees, calculation methods, payment schedules, and invoicing procedures

6. Service Level Commitments: Timeline commitments, response times, and quality standards for recruitment services

7. Replacement Guarantee: Terms and conditions for candidate replacement if placement is unsuccessful within a specified period

8. Regulatory Compliance: Commitments to comply with Saudi labor laws, MHRSD regulations, and Saudization requirements

9. Confidentiality: Protection of confidential information exchanged during the recruitment process

10. Term and Termination: Duration of the agreement and conditions for termination

11. General Provisions: Standard legal clauses including governing law, dispute resolution, and notices