Contract Letter Of Employment Template for Saudi Arabia

The Contract Letter of Employment is a fundamental document used in Saudi Arabia to formalize employment relationships across various sectors and organization types. This document is essential when hiring new employees, whether Saudi nationals or expatriates, and must comply with the Saudi Labor Law (Royal Decree No. M/51) and related ministerial resolutions. The letter serves multiple purposes: it defines the terms of employment, protects both employer and employee rights, ensures compliance with local regulations including Saudization requirements, and establishes clear expectations regarding duties, compensation, and benefits. The document is particularly important in the Saudi context due to specific local requirements such as GOSI registration, Nitaqat compliance, and mandatory benefits structure.

1. Letterhead and Date: Company letterhead, date, and reference number if applicable

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

3. Position and Work Location: Job title, department, and primary workplace location

4. Employment Terms: Start date, probation period, contract duration (fixed/unlimited term)

5. Compensation: Basic salary, allowances (housing, transportation), and payment schedule

6. Working Hours: Standard working hours, days, and overtime arrangements

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

8. Benefits: Health insurance, GOSI registration, and other company benefits

9. Duties and Obligations: Key responsibilities and compliance with company policies

10. Termination Provisions: Notice periods and conditions for contract termination

11. Governing Law: Reference to Saudi Labor Law and jurisdiction

12. Signature Block: Space for employer and employee signatures with dates