This Labour Hire Agreement is essential for businesses operating in Saudi Arabia that require temporary or flexible workforce solutions. The document is designed to comply with Saudi Arabian labor laws and regulations, including crucial requirements such as Saudization quotas, GOSI registration, and the Wage Protection System. It establishes a clear framework for the three-way relationship between the labor hire provider, client company, and assigned workers, detailing responsibilities for worker supervision, payment arrangements, and regulatory compliance. The agreement is particularly important given the complex regulatory environment in Saudi Arabia and the need to properly document temporary labor arrangements to satisfy government authorities.
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1. Parties: Identification of the labor hire company (provider), the client company (hirer), and their respective details
2. Background: Context of the agreement, including the provider's authority to supply labor and the client's need for workers
3. Definitions: Key terms used throughout the agreement, including 'Assigned Workers', 'Services', 'Assignment', 'Charges', etc.
4. Scope of Services: Details of labor hire services, including types of workers to be provided and general duties
5. Term: Duration of the agreement and renewal provisions
6. Provider Obligations: Provider's responsibilities including worker screening, compliance with labor laws, Saudization requirements, and GOSI registration
7. Client Obligations: Client's responsibilities regarding worker supervision, workplace safety, and cooperation with provider
8. Worker Management: Processes for worker assignment, replacement, and performance management
9. Charges and Payment: Fee structure, payment terms, and compliance with Wage Protection System
10. Workplace Health and Safety: Safety obligations and compliance with Saudi workplace safety regulations
11. Confidentiality: Protection of confidential information between all parties
12. Insurance and Liability: Insurance requirements and allocation of risks between parties
13. Termination: Grounds and process for termination, including notice periods
14. General Provisions: Standard legal provisions including governing law, notices, and dispute resolution
1. Non-Solicitation: Restrictions on hiring workers directly, used when provider wants to protect their workforce
2. Intellectual Property: IP protection clauses, included when workers may be involved in creating IP
3. Performance Guarantees: Specific service levels and KPIs, included for high-value or critical assignments
4. Special Industry Requirements: Additional provisions for specific industries (e.g., oil & gas, construction)
5. Training and Development: Provisions for worker training, included when specific skills development is required
6. Transition Services: Procedures for transitioning workers at contract end, used in long-term arrangements
1. Schedule 1 - Pricing Schedule: Detailed breakdown of charges, margins, and payment terms
2. Schedule 2 - Service Specifications: Detailed description of services and worker categories
3. Schedule 3 - Required Worker Qualifications: Minimum qualifications and experience requirements for different roles
4. Schedule 4 - Key Performance Indicators: Specific performance metrics and measurement criteria
5. Schedule 5 - Assignment Documentation: Standard forms for worker assignments and confirmations
6. Appendix A - Insurance Requirements: Detailed insurance coverage requirements for both parties
7. Appendix B - Health and Safety Requirements: Specific workplace safety requirements and procedures
Relevant legal definitions
Clauses
Relevant Industries
Construction
Manufacturing
Oil & Gas
Logistics
Facility Management
Retail
Hospitality
Healthcare
Agriculture
Mining
Industrial Services
Warehousing
Information Technology
Relevant Teams
Human Resources
Legal
Procurement
Operations
Project Management
Compliance
Risk Management
Finance
Facility Management
Contract Administration
Relevant Roles
Human Resources Director
Legal Counsel
Procurement Manager
Operations Director
Project Manager
Compliance Officer
Recruitment Manager
Contract Administrator
Risk Manager
Facility Manager
Site Supervisor
HR Business Partner
Labor Relations Manager
Finance Manager
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