The Employment Contract Extension Letter is a crucial document used when an employer wishes to extend the duration of an existing employment relationship in Saudi Arabia. It serves as an official amendment to the original employment contract, documenting the agreed extension period and any modifications to employment terms. This document is particularly important in the Saudi Arabian context, where employment relationships are strictly regulated under the Saudi Labor Law (Royal Decree No. M/51) and must comply with specific requirements regarding contract extensions, documentation, and employee rights. The letter needs to reference the original employment contract, clearly state the extension period, specify any changes to employment terms, and ensure compliance with local labor regulations including Saudization requirements. It's commonly used for both fixed-term contract extensions and converting fixed-term contracts to indefinite term agreements.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee
2. Original Contract Reference: Clear reference to the original employment contract, including its date and contract number
3. Extension Terms: Specific details of the extension period and effective dates
4. Confirmation of Existing Terms: Statement confirming which original contract terms remain in effect
5. Acknowledgment: Statement requiring employee's acknowledgment and acceptance of the extension
6. Signature Block: Areas for authorized company representative and employee signatures, with dates
1. Modified Terms: Section to be included only if any terms of employment are being modified along with the extension
2. Performance Recognition: Optional section acknowledging employee's performance, to be included for positive reinforcement
3. Additional Benefits: To be included if any new benefits are being added with the extension
4. Confidentiality Reminder: Optional reminder of existing confidentiality obligations, particularly relevant for senior positions
5. Notice Period: Optional clarification of notice period requirements, if different from original contract
1. Schedule 1 - Updated Compensation Details: If there are any changes to compensation, detailed breakdown to be attached
2. Schedule 2 - Updated Job Description: If role responsibilities have changed, new job description to be attached
3. Appendix A - Original Contract Copy: Copy of the original employment contract for reference
4. Appendix B - Required Government Forms: Any mandatory forms required by Saudi labor authorities for contract extension
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