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Employment Offer Letter
"I need an employment offer letter for a software engineer with 3 years of experience, offering a $90,000 annual salary, 15 days of paid leave, and a 3-month probation period with a 2-week notice."
What is an Employment Offer Letter?
An Employment Offer Letter outlines the key terms of a job offer in Saudi Arabia, serving as the first formal step in establishing an employer-employee relationship. It typically details the position title, salary, start date, work location, and basic benefits in line with Saudi Labor Law requirements.
Under Saudi employment regulations, this letter becomes legally binding once both parties sign it, though it's usually followed by a more detailed employment contract. Companies must ensure their offer letters comply with Saudization policies, mention probation periods when applicable, and clearly state if the position is temporary or permanent. Many organizations use these letters during recruitment to attract both local Saudi talent and qualified expatriate workers.
When should you use an Employment Offer Letter?
Use an Employment Offer Letter when you've selected your final candidate and need to formalize the job offer before creating the full employment contract. This document is especially important when recruiting skilled professionals, expatriate workers, or filling positions that require specific Saudization compliance.
The letter proves invaluable during salary negotiations, helps secure top talent quickly, and establishes clear expectations before the detailed contract phase. It's particularly crucial when hiring for senior roles, dealing with international candidates who need visa sponsorship, or when filling positions with specific Ministry of Labor requirements. Using it early prevents misunderstandings about compensation, benefits, and working conditions.
What are the different types of Employment Offer Letter?
- Simple Job Offer Letter: Basic version with essential terms for entry-level or standard positions
- Job Offer Contract: Comprehensive version with detailed terms for senior roles or specialized positions
- Employment Joining Letter: Formal confirmation after offer acceptance, including reporting instructions
- Letter Of Thanks For Job Offer: Candidate's formal acceptance document, required for Ministry compliance
- Job Refusal Letter: Professional declination format maintaining positive relationships
Who should typically use an Employment Offer Letter?
- HR Directors and Managers: Draft and customize offer letters according to Saudi Labor Law and company policies
- Legal Department: Reviews terms to ensure compliance with local regulations and Saudization requirements
- Department Heads: Provide input on role-specific requirements and approve final terms
- Prospective Employees: Review and sign the offer, including both Saudi nationals and expatriate workers
- Ministry of Labor: May review offers during work permit applications or labor disputes
- Recruitment Agencies: Often facilitate the offer process between employers and candidates
How do you write an Employment Offer Letter?
- Position Details: Confirm exact job title, department, reporting structure, and work location
- Compensation Package: Gather salary details, allowances, benefits, and any performance-based incentives
- Legal Requirements: Check current Saudi Labor Law provisions and Saudization quotas for the role
- Contract Terms: Define work hours, leave entitlements, and probation period duration
- Candidate Information: Collect full legal name, ID/Iqama number, and contact details
- Internal Approvals: Secure sign-off from department head, HR, and finance before sending
- Documentation: Prepare two copies in Arabic and English for proper legal compliance
What should be included in an Employment Offer Letter?
- Basic Information: Full legal names of employer and employee, company CR number, employee ID/Iqama details
- Position Details: Job title, department, work location, and reporting structure aligned with Ministry classifications
- Compensation Terms: Base salary, housing allowance, transportation allowance in Saudi Riyals
- Work Schedule: Hours per week, official working days as per Saudi Labor Law
- Benefits Package: Medical insurance, annual leave, end-of-service benefits per local regulations
- Probation Period: Duration not exceeding 90 days as per Saudi law
- Governing Law: Reference to Saudi Labor Law and applicable regulations
- Language Requirements: Arabic version alongside any other language used
What's the difference between an Employment Offer Letter and an Employment Contract?
An Employment Offer Letter differs significantly from an Employment Contract in several key aspects under Saudi labor law. While both documents are important in the hiring process, they serve distinct purposes and carry different legal weights.
- Legal Status: An offer letter is a preliminary document outlining basic terms, while an employment contract is a comprehensive, legally binding agreement required by Saudi Labor Law
- Timing: The offer letter comes first during negotiations, followed by the detailed contract after acceptance
- Content Depth: Offer letters contain basic terms like position and salary, while contracts include extensive details about duties, policies, and obligations
- Regulatory Requirements: Employment contracts must meet specific Ministry of Labor requirements and be in Arabic, while offer letters can be more flexible
- Duration of Effect: Offer letters are temporary, serving until the contract is signed, while contracts govern the entire employment relationship
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