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Independent Contractor Driver Agreement for Saudi Arabia

Independent Contractor Driver Agreement Template for Saudi Arabia

This document establishes a contractual relationship between a company and an independent contractor driver in Saudi Arabia, governed by Saudi law. It outlines the terms and conditions for providing transportation or delivery services, including payment terms, service requirements, and compliance obligations. The agreement ensures compliance with Saudi Arabian labor laws while maintaining the independent contractor status, addressing key aspects such as vehicle requirements, insurance obligations, and operational standards. It incorporates relevant provisions from Saudi traffic regulations, commercial laws, and transportation authority requirements.

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What is a Independent Contractor Driver Agreement?

The Independent Contractor Driver Agreement is designed for use in Saudi Arabia's evolving transportation and delivery sectors, where companies increasingly rely on independent contractors rather than traditional employees. This document is essential for businesses operating transportation, delivery, or ride-hailing services in Saudi Arabia, providing a comprehensive framework for engaging independent drivers while ensuring compliance with Saudi labor laws, traffic regulations, and commercial requirements. The agreement addresses critical aspects such as service terms, payment structures, compliance requirements, and risk allocation, while clearly establishing the independent contractor relationship to avoid misclassification under Saudi employment laws. It's particularly relevant in the context of Saudi Arabia's growing gig economy and digital transformation initiatives, incorporating provisions for both traditional transportation services and technology-enabled platforms.

What sections should be included in a Independent Contractor Driver Agreement?

1. Parties: Identification of the Company and the Independent Contractor Driver, including full legal names and contact details

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Key terms used throughout the agreement, including 'Services', 'Territory', 'Vehicle', and 'Platform'

4. Appointment and Scope of Services: Details of the contractor's appointment and specific services to be provided

5. Independent Contractor Status: Clear statement of independent contractor relationship and distinction from employment

6. Term and Termination: Duration of the agreement and circumstances for termination

7. Contractor's Obligations: Key responsibilities including compliance with traffic laws, maintenance of licenses, and service standards

8. Company's Obligations: Company's responsibilities including payment terms and support services

9. Vehicle Requirements: Specifications for vehicles used in service delivery

10. Compensation and Payment Terms: Payment structure, calculation method, and payment schedule

11. Insurance and Liability: Required insurance coverage and allocation of risks

12. Confidentiality: Protection of confidential information and trade secrets

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

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

15. Governing Law: Specification of Saudi law as governing law

What sections are optional to include in a Independent Contractor Driver Agreement?

1. Non-Compete: Restrictions on working with competitors, used when contractor has access to sensitive information

2. Equipment Provision: Include when company provides any equipment to the contractor

3. Training Requirements: Required when specific training programs are mandatory

4. Performance Metrics: Include when specific performance standards are tracked

5. Branding Requirements: Used when contractor must comply with specific branding guidelines

6. Subcontracting: Include when contractor is permitted to subcontract services

7. Insurance Through Company: Used when company provides insurance coverage options

8. Platform-Specific Terms: Include when services are provided through a specific technology platform

What schedules should be included in a Independent Contractor Driver Agreement?

1. Schedule 1 - Service Area Map: Detailed map and description of authorized service territory

2. Schedule 2 - Fee Schedule: Detailed breakdown of payment rates and calculation methods

3. Schedule 3 - Vehicle Requirements: Specific vehicle standards, maintenance requirements, and inspection schedules

4. Schedule 4 - Service Level Requirements: Detailed performance standards and metrics

5. Schedule 5 - Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

6. Schedule 6 - Safety and Operating Procedures: Detailed safety protocols and operational guidelines

7. Appendix A - Required Documentation: List of required licenses, permits, and certificates

8. Appendix B - Incident Reporting Forms: Standard forms for reporting accidents or incidents

Authors

Alex Denne

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

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions









































Clauses








































Relevant Industries

Transportation

Logistics

E-commerce

Food Delivery

Courier Services

Ride-hailing

Last-mile Delivery

Freight Transport

Retail Distribution

Healthcare Logistics

Relevant Teams

Legal

Operations

Human Resources

Compliance

Risk Management

Driver Relations

Fleet Management

Partner Success

Contracts Administration

Safety and Security

Relevant Roles

Operations Manager

Fleet Manager

Compliance Officer

Legal Counsel

HR Director

Logistics Coordinator

Driver Relations Manager

Contract Administrator

Risk Manager

Transportation Manager

Delivery Operations Supervisor

Partner Success Manager

Industries








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

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