Issuance of Ajeer Contract (Ajeer Agreement)

The Ajeer Contract Issuance Service is an online service for establishments that enables them to create and formalize temporary work contracts between a labor-providing establishment and a beneficiary establishment. Its purpose is to regulate the provision of manpower for a defined period and activity, while workers remain legally affiliated with their original employer rather than transferring sponsorship. This service is used when a beneficiary establishment needs workers from another establishment to execute a project, cover a seasonal peak, or address a temporary shortage without going through full recruitment or sponsorship transfer procedures.

Importance of the Ajeer Contract Issuance Service (Ajeer Contract)

Structures the relationship between establishments using temporary manpower through a documented contract specifying duration, locations, and services.
Reduces reliance on informal or verbal arrangements, thereby limiting disputes and regulatory violations.
Allows providers to monetize surplus workforce legally and beneficiaries to meet operational needs without long-term recruitment.
Links the master contract to individual worker permits, giving high visibility over who works, where, and under what framework.
Enhances labor-market flexibility and internal workforce redistribution while remaining aligned with Saudization and temporary work regulations.

Challenges related to the Ajeer Contract Issuance Service (Ajeer Contract)

Requires both parties to carefully review and agree on financial and legal responsibilities before e-approval.
Demands clear understanding of how the contract type affects Saudization metrics and workforce counts.
Aligning expectations on duration, manpower volume, and tasks can delay agreement if not well-negotiated.
Errors in beneficiary details, locations, or dates may force contract cancellation and re-issuance.
Necessitates internal coordination among HR, legal, and finance teams to ensure electronic contract terms match any parallel paper agreements or annexes.