The Employee Letter of Employment is a crucial document used when formally hiring employees in Saudi Arabia, whether for permanent, fixed-term, or temporary positions. It serves as the primary document establishing the employment relationship and must comply with Saudi Labor Law requirements. This document is typically issued after successful completion of recruitment processes and before the employee's start date. It contains essential information including job role, compensation, benefits, working hours, and other employment terms as mandated by Saudi law. The letter forms part of the employment documentation required for various purposes, including visa processing, bank account opening, and regulatory compliance. It should be drafted in both Arabic and English, with the Arabic version prevailing in case of any discrepancy, as per Saudi legal requirements.
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1. Letterhead and Date: Company letterhead, date of issuance, and reference number if applicable
2. Employee Information: Full name, nationality, ID/Iqama number, and address of the employee
3. Job Details: Position title, department, reporting relationship, and work location
4. Employment Terms: Employment start date, probation period, and contract duration (fixed/unlimited term)
5. Compensation: Basic salary, allowances (housing, transportation), and payment schedule as per WPS requirements
6. Working Hours: Standard working hours, days of work, and overtime policy
7. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements
8. Benefits: Medical insurance, GOSI registration, and other standard benefits
9. Termination Terms: Notice period and basic termination conditions
10. Governing Law: Reference to Saudi Labor Law and jurisdiction
11. Acknowledgment: Signature blocks for both employer and employee
1. Confidentiality Clause: Include when role involves access to sensitive information
2. Non-Competition: Include for senior positions or roles with access to trade secrets
3. Performance Bonus: Include when offering variable compensation components
4. Remote Work Policy: Include if role allows for remote working arrangements
5. Training Commitments: Include when specific training or certification requirements exist
6. Travel Requirements: Include for roles requiring regular business travel
7. Commission Structure: Include for sales or commission-based positions
1. Job Description: Detailed outline of role responsibilities and requirements
2. Benefits Summary: Detailed breakdown of all benefits and allowances
3. Company Policies: Key company policies that form part of employment terms
4. Code of Conduct: Company's code of conduct and ethical guidelines
5. Performance Metrics: Specific KPIs or performance evaluation criteria if applicable
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Human Resources
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