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Employee Leasing Agreement Template for Saudi Arabia

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Employee Leasing Agreement

"Need an Employee Leasing Agreement for providing 50 IT professionals to a Saudi telecommunications company starting March 2025, with specific provisions for intellectual property protection and potential permanent hire after 12 months."

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What is a Employee Leasing Agreement?

This Employee Leasing Agreement is essential for businesses operating in Saudi Arabia that require flexible workforce solutions while maintaining compliance with local regulations. The document is typically used when a company needs to temporarily expand its workforce, access specialized skills, or manage seasonal demands without directly hiring employees. It establishes the framework for a three-way relationship between the staffing provider, client company, and leased employees, ensuring compliance with Saudi labor laws, including Saudization requirements, social insurance regulations, and workplace safety standards. The agreement becomes particularly important given Saudi Arabia's complex regulatory environment and the need to clearly delineate responsibilities between the leasing company and client company regarding employee management, benefits, and legal obligations.

What sections should be included in a Employee Leasing Agreement?

1. Parties: Identifies the leasing company (service provider) and the client company (service recipient)

2. Background: Explains the context of the agreement, including the leasing company's authority to provide staff and the client's need for personnel

3. Definitions: Defines key terms used throughout the agreement, including 'Leased Employees', 'Services', 'Assignment Period', etc.

4. Scope of Services: Details the employee leasing services to be provided, including recruitment, placement, and management of leased employees

5. Term and Assignment Periods: Specifies the duration of the agreement and individual employee assignments

6. Responsibilities of the Leasing Company: Outlines the leasing company's obligations regarding employment contracts, payroll, benefits, and compliance with labor laws

7. Responsibilities of the Client Company: Details client's obligations regarding workplace conditions, supervision, and day-to-day management of leased employees

8. Fees and Payment Terms: Specifies service fees, payment schedule, and any additional charges

9. Employment Compliance: Addresses compliance with Saudi labor laws, including Saudization requirements and work permits

10. Confidentiality and Data Protection: Covers protection of confidential information and personal data

11. Liability and Indemnification: Allocates risks and responsibilities between parties

12. Insurance Requirements: Specifies required insurance coverage for both parties

13. Termination: Details circumstances and procedures for terminating the agreement or individual assignments

14. General Provisions: Includes standard clauses such as governing law, notices, and dispute resolution

What sections are optional to include in a Employee Leasing Agreement?

1. Non-Competition and Non-Solicitation: Restrictions on hiring leased employees directly; used when the client company agrees not to hire employees directly during and after the agreement

2. Performance Standards: Specific performance metrics and evaluation criteria; included when parties agree to specific performance measurements

3. Training and Development: Responsibilities for employee training; included when specific training requirements are part of the arrangement

4. Intellectual Property Rights: Protection of IP created by leased employees; included when employees will be involved in creative or technical work

5. Force Majeure: Provisions for unforeseen circumstances; particularly relevant in long-term agreements

6. Transition Services: Procedures for transferring employees; included when there's potential for permanent hiring or contract termination

What schedules should be included in a Employee Leasing Agreement?

1. Schedule 1 - Service Fees and Payment Terms: Detailed breakdown of service fees, markup percentages, and payment schedules

2. Schedule 2 - Minimum Service Levels: Specific performance metrics and service level requirements

3. Schedule 3 - Required Personnel Qualifications: Minimum qualifications and experience requirements for leased employees

4. Schedule 4 - Employee Benefits Package: Details of benefits provided to leased employees

5. Schedule 5 - Health and Safety Requirements: Specific health and safety protocols and responsibilities

6. Appendix A - Standard Assignment Terms: Template for individual employee assignment agreements

7. Appendix B - Required Forms and Documentation: Templates for timesheet, expense reports, and other operational documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Industries

Manufacturing

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Relevant Roles

Human Resources Director

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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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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