All Countries
Employment
Simple Compensation Agreement

Simple Compensation Agreement Template for Saudi Arabia

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Simple Compensation Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Simple Compensation Agreement

"I need a Simple Compensation Agreement for a tech consultant based in Riyadh who will be paid 50,000 SAR monthly starting March 1, 2025, with payments to be made via bank transfer and including confidentiality provisions."

Celebrated by
Collaborations with
Investors
Document background
The Simple Compensation Agreement is a fundamental legal instrument used in Saudi Arabia to formalize compensation arrangements between parties. This document is particularly valuable when establishing clear payment terms for services, consultancy, or other professional engagements within the Saudi Arabian legal framework. The agreement must comply with both Saudi Labor Law and Sharia principles, making it distinct from compensation agreements in other jurisdictions. It typically includes detailed provisions for payment schedules, tax implications, and currency considerations, while incorporating necessary compliance elements for Saudi Arabian regulatory requirements. This type of agreement is commonly used for both one-time payments and recurring compensation arrangements, providing a legally sound foundation for financial obligations between parties.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including full legal names and addresses

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Compensation Amount: Clear statement of the compensation amount and its components

5. Payment Terms: Timing, method, and conditions of payment

6. Tax Obligations: Responsibilities for tax payments and withholdings under Saudi law

7. Duration: Period for which the compensation arrangement is valid

8. Compliance with Laws: Statement of compliance with Saudi Labor Law and Sharia principles

9. Dispute Resolution: Process for resolving disputes under Saudi law

10. Governing Law: Explicit statement of Saudi law as governing law

11. Execution: Signature blocks and execution requirements

Optional Sections

1. Confidentiality: Terms of confidentiality if the compensation details are to remain private

2. Performance Conditions: If compensation is tied to specific performance metrics or conditions

3. Currency and Exchange: For international payments, specifying currency and exchange rate provisions

4. Force Majeure: Provisions for unforeseen circumstances affecting payment obligations

5. Electronic Payment Terms: Specific provisions for electronic transfers if applicable

6. Assignment: Rights and restrictions regarding assignment of payment rights

7. Termination: Conditions under which the compensation agreement can be terminated

Suggested Schedules

1. Schedule 1 - Compensation Breakdown: Detailed breakdown of compensation components and calculations

2. Schedule 2 - Payment Schedule: Timeline of payments including dates and amounts

3. Schedule 3 - Bank Details: Banking information for payment processing

4. Appendix A - Required Documentation: List of documents required for processing payments

5. Appendix B - Performance Metrics: If applicable, detailed metrics tied to compensation

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Professional Services

Construction

Technology

Financial Services

Healthcare

Education

Manufacturing

Retail

Consulting

Real Estate

Energy

Telecommunications

Relevant Teams

Human Resources

Legal

Finance

Compliance

Procurement

Operations

Administration

Payroll

Risk Management

Contract Management

Relevant Roles

Human Resources Manager

Compensation & Benefits Specialist

Legal Counsel

Finance Director

Contract Administrator

Project Manager

Chief Financial Officer

HR Director

Compliance Officer

Procurement Manager

Business Development Manager

Operations Director

Industries
Saudi Labor Law (Royal Decree No. M/51): The primary legislation governing employment relationships in Saudi Arabia, including provisions for compensation, benefits, and payment terms
Civil Transactions Law (derived from Sharia Law): Fundamental principles governing contracts, including formation, validity, and enforcement of agreements in Saudi Arabia
SAMA Payment Systems Regulations: Regulations by the Saudi Arabian Monetary Authority governing payment methods and electronic transfers within the Kingdom
Anti-Money Laundering Law (Royal Decree No. M/20): Regulations concerning financial transactions and documentation requirements for payments to ensure compliance with AML standards
Zakat, Tax and Customs Authority (ZATCA) Regulations: Tax implications and reporting requirements for compensation payments in Saudi Arabia
Electronic Transactions Law (Royal Decree No. M/18): Regulations governing electronic signatures and digital documentation if the agreement is to be executed electronically
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

Find the exact document you need

Simple Compensation Agreement

A Saudi Arabian law-governed agreement that establishes compensation terms and payment conditions between parties, ensuring compliance with local regulations and Sharia principles.

find out more

Separation Pay Agreement

A Saudi Arabian law-governed agreement that formalizes employment termination terms and final settlement between employer and employee.

find out more

Incentive Bonus Agreement

A Saudi Arabian law-governed agreement establishing terms for employee performance-based bonus payments, including calculation methods and eligibility criteria.

find out more

Stock Appreciation Rights Agreement

A Saudi Arabian law-governed agreement establishing stock appreciation rights as employee compensation, detailing grant terms, vesting conditions, and exercise procedures in compliance with local regulations.

find out more

Severance Payment Agreement

A Saudi Arabian law-governed agreement detailing employee separation terms and severance payment arrangements, compliant with local labor regulations.

find out more

Stock Grant Agreement

A Saudi Arabian law-governed agreement that establishes terms for granting company shares to individuals, typically as part of compensation packages, while ensuring compliance with local regulations and Sharia principles.

find out more

Compensation For Non Compete Agreement

A Saudi Arabian law-compliant agreement providing compensation to employees in exchange for post-employment non-compete commitments.

find out more

Employee Retention Bonus Agreement

A Saudi Arabian law-governed agreement establishing terms for employee retention bonus payments, including amount, conditions, and payment schedule.

find out more

Restricted Stock Award Agreement

A Saudi Arabian law-governed agreement detailing the terms of restricted stock awards to employees, including vesting conditions and transfer restrictions.

find out more

Commission Pay Agreement

A Saudi Arabian law-governed agreement establishing commission-based compensation terms between an employer and employee/agent, compliant with local labor laws and Shari'ah principles.

find out more

Compensation Confidentiality Agreement

A Saudi Arabian law-governed agreement establishing compensation terms for maintaining confidentiality of sensitive information, combining confidentiality obligations with payment provisions.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.

Read our Privacy Policy.