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HR Service Level Agreement for Saudi Arabia

HR Service Level Agreement Template for Saudi Arabia

A comprehensive service level agreement governing the provision of HR services in Saudi Arabia, structured in compliance with Saudi Labor Law and related regulations. This document establishes the framework for HR service delivery, including specific performance metrics, service standards, and compliance requirements with Saudi labor laws and Saudization policies. It details the responsibilities of both the service provider and client organization, covering various HR functions such as recruitment, payroll, personnel administration, and regulatory compliance, while ensuring alignment with local legal requirements and business practices in the Kingdom of Saudi Arabia.

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What is a HR Service Level Agreement?

This HR Service Level Agreement template is designed for use in the Kingdom of Saudi Arabia, specifically tailored to comply with Saudi Labor Law, Saudization requirements, and related regulations. The document is essential when establishing formal HR service arrangements, whether between an external HR service provider and a client organization, or between an internal HR department and other business units. The agreement comprehensively covers service specifications, performance standards, compliance requirements, and operational procedures for HR service delivery. It includes specific provisions addressing Saudi Arabian regulatory requirements, including Wage Protection System compliance, GOSI regulations, and Nitaqat (Saudization) program requirements. This template is particularly valuable for organizations seeking to formalize their HR service delivery model while ensuring compliance with local laws and regulations.

What sections should be included in a HR Service Level Agreement?

1. Parties: Identification of the service provider and client organization, including official registration details and addresses

2. Background: Context of the agreement, including the client's need for HR services and the provider's expertise

3. Definitions: Detailed definitions of technical terms, service-related terminology, and key concepts used throughout the agreement

4. Scope of Services: Comprehensive outline of HR services to be provided, including core responsibilities and deliverables

5. Service Provider Obligations: Detailed responsibilities of the HR service provider, including compliance with Saudi labor laws and Saudization requirements

6. Client Obligations: Responsibilities and obligations of the client organization, including provision of necessary information and access

7. Service Levels and Performance Metrics: Specific, measurable performance standards and KPIs for each service area

8. Reporting and Communication: Requirements for regular reporting, meetings, and communication protocols

9. Fees and Payment Terms: Detailed fee structure, payment schedule, and invoicing procedures

10. Compliance and Regulatory Requirements: Commitment to comply with Saudi labor laws, Saudization requirements, and other relevant regulations

11. Confidentiality and Data Protection: Provisions for protecting sensitive information and compliance with data protection laws

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

13. Dispute Resolution: Procedures for resolving disputes, including reference to Saudi law and jurisdiction

14. General Provisions: Standard legal clauses including force majeure, notices, and amendments

What sections are optional to include in a HR Service Level Agreement?

1. Recruitment Services: Detailed provisions for recruitment services if included in the scope, including Saudization targeting

2. Payroll Administration: Specific terms for payroll processing services if included, including WPS compliance

3. Training and Development: Terms for training service provision if included in the scope

4. Employee Relations Management: Provisions for handling employee relations if included in service scope

5. HRMS Systems and Technology: Terms regarding HR technology systems if provider is supplying or managing these

6. Business Continuity: Provisions for ensuring service continuity during disruptions

7. Transition Services: Terms for handling service transition at start and end of agreement

8. Performance Incentives: Additional incentive structures for exceeding performance targets

What schedules should be included in a HR Service Level Agreement?

1. Schedule 1: Detailed Service Specifications: Comprehensive breakdown of each service area with specific deliverables

2. Schedule 2: Service Level Metrics and KPIs: Detailed performance metrics, measurement methods, and reporting requirements

3. Schedule 3: Fee Schedule: Detailed breakdown of fees, charging mechanisms, and payment terms

4. Schedule 4: Implementation Plan: Timeline and milestones for service implementation

5. Schedule 5: Key Personnel: Details of key staff members and their roles from both parties

6. Schedule 6: Reporting Templates: Standard formats for various required reports

7. Appendix A: Compliance Checklist: Checklist of relevant Saudi labor law and regulatory requirements

8. Appendix B: Data Protection and Security Standards: Detailed security and data protection protocols

9. Appendix C: Emergency Contact Protocol: Procedures and contacts for emergency situations

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

Jurisdiction

Saudi Arabia

Cost

Free to use

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