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.
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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
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
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
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