This Driver Contractor Agreement is designed for use in Saudi Arabia when engaging independent drivers for transportation and delivery services. It establishes a clear independent contractor relationship while ensuring compliance with Saudi Arabian labor, transportation, and commercial laws. The document is particularly relevant in the context of the kingdom's growing logistics and e-commerce sectors, addressing key aspects such as service requirements, compensation, compliance obligations, and risk allocation. It includes specific provisions required under Saudi legislation, including compliance with traffic regulations, commercial registration requirements, and mandatory insurance coverage. The agreement is structured to protect both parties' interests while maintaining flexibility in service delivery and operational management.
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1. Parties: Identification of the contracting company and the independent contractor driver, including full legal names, addresses, and commercial registration details
2. Background: Context of the agreement, nature of the transportation services required, and the basis of the contractor relationship
3. Definitions: Key terms used throughout the agreement, including technical, operational, and legal terminology
4. Scope of Services: Detailed description of transportation services to be provided, including types of deliveries, geographic area, and service standards
5. Independent Contractor Status: Clear establishment of the contractor's independent status, distinguishing from employment relationship
6. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination by either party
7. Compensation and Payment Terms: Payment structure, rates, payment schedule, and method of payment
8. Contractor's Obligations: Key responsibilities including vehicle maintenance, safety standards, licensing, and service quality requirements
9. Company's Obligations: Company's responsibilities including payment, provision of necessary information, and support
10. Vehicle Requirements: Specifications for vehicles, maintenance standards, and branding requirements
11. Compliance with Laws: Obligation to comply with Saudi traffic laws, transportation regulations, and other applicable legislation
12. Insurance Requirements: Mandatory insurance coverage and minimum insurance limits
13. Confidentiality: Protection of confidential information and trade secrets
14. Dispute Resolution: Process for resolving disputes, including jurisdiction and applicable law
15. General Provisions: Standard legal provisions including notices, amendments, and severability
1. Exclusivity: Used when the contractor is required to work exclusively for the company
2. Performance Metrics: Include when specific KPIs and performance standards are required
3. Technology and Equipment: When specific technology or equipment must be used by the contractor
4. Training Requirements: When specific training or certification programs are mandatory
5. Subcontracting: If subcontracting of services is permitted and under what conditions
6. Environmental Compliance: For contracts requiring specific environmental standards or green initiatives
7. Customer Service Standards: When direct customer interaction is part of the service
8. Cross-Border Operations: For services extending beyond Saudi Arabia
1. Schedule A - Service Rates: Detailed breakdown of payment rates, including base rates, bonuses, and special conditions
2. Schedule B - Service Areas: Maps and descriptions of authorized service areas and routes
3. Schedule C - Vehicle Specifications: Detailed technical requirements for vehicles, including age, model, and maintenance standards
4. Schedule D - Operating Procedures: Standard operating procedures and service protocols
5. Schedule E - Insurance Requirements: Detailed insurance specifications and minimum coverage requirements
6. Schedule F - Performance Standards: Specific metrics and standards for service quality evaluation
7. Appendix 1 - Required Documents: List of required licenses, permits, and certifications
8. Appendix 2 - Incident Reporting Forms: Standard forms for reporting accidents, incidents, or service issues
Relevant legal definitions
Clauses
Relevant Industries
Transportation & Logistics
E-commerce
Retail
Food & Beverage
Healthcare & Pharmaceuticals
Manufacturing
Construction
Oil & Gas
Automotive
Postal & Courier Services
Relevant Teams
Legal
Operations
Logistics
Procurement
Compliance
Risk Management
Fleet Operations
Supply Chain
Contract Administration
Driver Relations
Safety & Security
Relevant Roles
Logistics Manager
Fleet Manager
Operations Director
Procurement Manager
Contract Administrator
Legal Counsel
Compliance Officer
Transportation Coordinator
Supply Chain Manager
Driver Relations Manager
Risk Manager
Safety Officer
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