Staffing Agency Agreement Template for Saudi Arabia

The Staffing Agency Agreement serves as a critical document in the Saudi Arabian business environment, where temporary workforce solutions play an increasingly important role in supporting business flexibility and growth. This agreement is essential for companies seeking to manage their workforce requirements while ensuring compliance with strict local labor regulations, including Saudization quotas and Ministry of Human Resources and Social Development requirements. It outlines the responsibilities of both the staffing agency and the client company, covering aspects such as recruitment, employee management, payment terms, and regulatory compliance. The document is particularly relevant in the context of Saudi Arabia's Vision 2030, which emphasizes private sector growth and employment opportunities for Saudi nationals. The agreement must align with Islamic Sharia principles and incorporate specific provisions required under Saudi labor law, making it distinct from similar agreements in other jurisdictions.

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

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

3. Definitions: Key terms used throughout the agreement, including 'Assigned Employees', 'Services', 'Assignment Period', etc.

4. Scope of Services: Detailed description of recruitment, placement, and management services provided by the staffing agency

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination

6. Agency Obligations: Staffing agency's responsibilities including compliance with labor laws, Saudization requirements, and quality of service standards

7. Client Obligations: Client's responsibilities regarding assigned employees, workplace safety, and cooperation with the agency

8. Fees and Payment Terms: Service fees, payment schedule, and invoicing procedures compliant with Saudi financial regulations

9. Employee Management: Processes for employee selection, assignment, replacement, and performance management

10. Compliance Requirements: Obligations regarding Saudi labor laws, Saudization quotas, and regulatory requirements

11. Confidentiality: Protection of confidential information and trade secrets of all parties

12. Data Protection: Handling of personal data in compliance with Saudi data protection regulations

13. Liability and Indemnification: Allocation of risks and responsibilities between parties

14. Insurance: Required insurance coverage for both agency and assigned employees

15. Dispute Resolution: Procedures for resolving disputes under Saudi law and appropriate jurisdiction

16. General Provisions: Standard clauses including notices, amendments, assignment, and entire agreement