Subcontractor Employment Contract Template for Saudi Arabia

The Subcontractor Employment Contract is essential for businesses operating in Saudi Arabia that engage subcontractors for specific projects or ongoing services. This document is designed to comply with the Saudi Labor Law (Royal Decree No. M/51) and its implementing regulations, ensuring proper documentation of the employment relationship while protecting both the main contractor's and subcontractor's interests. It is particularly important in sectors where project-based work is common, such as construction, technology, and professional services. The contract includes mandatory provisions required by Saudi law, including working hours, leave entitlements, and social insurance obligations, while also addressing specific project requirements and performance standards. This document is crucial for maintaining compliance with local regulations, including Saudization requirements and the Wage Protection System, while clearly defining the scope of work, compensation, and terms of the subcontracting relationship.

1. Parties: Identification of the main contractor (employer) and the subcontractor, including full legal names, addresses, and relevant registration numbers

2. Background: Context of the agreement, including the main project or business context requiring the subcontractor's services

3. Definitions: Key terms used throughout the contract, including project-specific terminology

4. Scope of Work: Detailed description of services to be provided by the subcontractor, including specific roles and responsibilities

5. Term of Employment: Duration of the contract, including start date, end date (if fixed-term), and renewal provisions

6. Compensation and Benefits: Salary, payment terms, allowances, and benefits as required by Saudi Labor Law

7. Working Hours and Leave: Standard working hours, overtime provisions, and various types of leave entitlements

8. Obligations of the Subcontractor: Key responsibilities, performance standards, and compliance requirements

9. Obligations of the Company: Employer's commitments regarding workspace, tools, safety measures, and support

10. Confidentiality and Data Protection: Requirements for handling confidential information and data protection obligations

11. Intellectual Property Rights: Ownership and rights related to work products and innovations

12. Termination: Conditions and procedures for contract termination, notice periods, and final settlements

13. Governing Law and Jurisdiction: Confirmation of Saudi Law application and dispute resolution mechanisms

14. General Provisions: Standard clauses including amendments, notices, and entire agreement provisions