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Employment Letter for Saudi Arabia

Employment Letter Template for Saudi Arabia

A formal employment letter governed by Saudi Arabian law that establishes the fundamental terms and conditions of employment between an employer and employee. This document complies with the Saudi Labor Law and related regulations, including requirements for Saudization, GOSI contributions, and the Wage Protection System. It outlines essential employment terms such as position, compensation, benefits, working hours, and leave entitlements while incorporating necessary provisions to meet local legal requirements and cultural considerations specific to Saudi Arabia.

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What is a Employment Letter?

The Employment Letter serves as a formal document establishing an employment relationship under Saudi Arabian law. It is typically used when making new hires or formalizing existing employment relationships, and must comply with the Saudi Labor Law, ministerial resolutions, and Sharia principles. The letter outlines fundamental employment terms including position, compensation, benefits, and working conditions, while ensuring adherence to mandatory requirements such as working hours, leave entitlements, and social insurance contributions. This document is essential for both Saudi nationals and expatriate workers, though specific content may vary based on nationality due to Saudization requirements and visa considerations. The Employment Letter forms the basis of the employment relationship and is often referenced alongside more detailed company policies and procedures.

What sections should be included in a Employment Letter?

1. Company Letterhead and Date: Official company letterhead with full legal name, address, and date of issuance

2. Employee Details: Full name, address, and national ID/iqama number of the employee

3. Position and Reporting Line: Job title, department, and immediate supervisor details

4. Employment Start Date: Confirmed start date and any probationary period details

5. Compensation Package: Basic salary, allowances, and any bonus structures

6. Working Hours and Location: Standard working hours, work location, and any flexibility arrangements

7. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements

8. Benefits Summary: Health insurance, social insurance (GOSI), and other benefits

9. Termination Provisions: Notice periods and basic termination conditions

10. Confidentiality Statement: Basic confidentiality obligations

11. Governing Law Reference: Reference to Saudi Labor Law governance

12. Acceptance and Signature: Signature blocks for both employer and employee

What sections are optional to include in a Employment Letter?

1. Mobility Clause: Required for positions that may involve relocation or travel

2. Non-Compete Clause: For senior positions or roles with access to sensitive information

3. Housing Allowance Details: For expatriate employees or when housing is provided

4. Transportation Arrangements: When company transport or car allowance is provided

5. Commission Structure: For sales or commission-based positions

6. Education Allowance: For expatriate employees with school-age children

7. Relocation Package: For international or inter-city relocations

8. Language Requirements: When Arabic language proficiency is required

What schedules should be included in a Employment Letter?

1. Job Description: Detailed outline of roles, responsibilities, and KPIs

2. Benefits Details: Comprehensive explanation of all benefits and eligibility criteria

3. Company Policies: Key company policies that form part of employment terms

4. Bonus Scheme: Detailed bonus calculation methodology and conditions

5. Required Documents Checklist: List of documents required for employment processing

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions
























Clauses




























Relevant Industries

Banking & Financial Services

Technology

Manufacturing

Healthcare

Retail

Construction

Education

Oil & Gas

Professional Services

Telecommunications

Hospitality

Real Estate

Transportation & Logistics

Consumer Goods

Media & Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research & Development

Customer Service

Administration

Production

Quality Assurance

Procurement

Business Development

Compliance

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Manager

Senior Executive

Project Manager

Sales Manager

Administrative Assistant

Technical Specialist

Financial Analyst

HR Officer

Marketing Coordinator

Operations Manager

Software Developer

Account Manager

Customer Service Representative

Research Analyst

Legal Counsel

Production Supervisor

Quality Control Inspector

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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