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The Employee Loan Promissory Note is a crucial document used in Saudi Arabian business operations when employers provide financial assistance to their employees through formal loan arrangements. This document type combines elements of traditional promissory notes with specific employment-related provisions, ensuring compliance with both Saudi Labor Law and Islamic Sharia principles. It is particularly important in situations where companies offer employee loan programs as part of their benefits package, requiring careful documentation of the debt obligation and repayment terms. The document includes essential provisions for salary deductions, considers the employment relationship context, and incorporates necessary safeguards for both parties. Used across various industries, this document type must strictly adhere to Saudi Arabian regulatory requirements while maintaining Sharia compliance, particularly regarding the treatment of interest and financing charges.

1. Parties: Identification of the employer (lender) and employee (borrower) with full legal names, addresses, and identification numbers

2. Background: Brief context explaining the employment relationship and purpose of the loan

3. Definitions: Key terms used in the document including 'Loan Amount', 'Repayment Schedule', 'Salary Deduction', etc.

4. Loan Details: Specific amount of the loan, purpose, and confirmation of receipt

5. Repayment Terms: Payment schedule, method of repayment (typically salary deduction), and amount of each installment

6. Authorization for Salary Deduction: Employee's explicit consent for the employer to deduct loan repayments from salary

7. Employee Acknowledgments: Employee's confirmation of debt obligation and understanding of terms

8. Default Provisions: Consequences of missing payments or termination of employment

9. Governing Law: Confirmation that the agreement is governed by Saudi law and Sharia principles