Offer Letter And Appointment Letter Template for Saudi Arabia

An Offer Letter and Appointment Letter is the foundational employment document that establishes your working relationship with an employee in Saudi Arabia. This dual-purpose document serves both as an initial job offer and, upon acceptance, transforms into a formal appointment letter that functions as your employment contract. Under Saudi Labor Law, this document must contain all essential employment terms and comply with specific regulatory requirements to ensure legal validity and protection for both parties.

When do you need this document?

You need this document whenever you're hiring new employees in Saudi Arabia, regardless of their nationality or position level. It's required when extending job offers to Saudi nationals as part of Saudization compliance, hiring expatriate workers who need employment documentation for visa purposes, promoting existing employees to new positions with changed terms, or converting temporary or contract workers to permanent positions. The document is also essential when hiring for positions that require specific regulatory compliance, such as roles in financial services or healthcare sectors that have additional licensing requirements.

Key legal considerations

Your Offer Letter and Appointment Letter must include several critical clauses to ensure legal compliance. The compensation section must detail the base salary, housing allowance, transportation allowance, and any other benefits as required by Saudi Labor Law. You must specify the probation period, which cannot exceed 90 days for most positions, and clearly outline the working hours, rest periods, and overtime policies in accordance with Saudi regulations. The document should include termination clauses that comply with end-of-service benefit calculations and notice period requirements. Additionally, you must address GOSI registration obligations, annual leave entitlements of at least 21 days, and sick leave provisions as mandated by law.

Legal requirements in Saudi Arabia

Under Saudi Labor Law (Royal Decree No. M/51) and its implementing regulations, your employment documentation must meet specific statutory requirements. The document must be written in Arabic or include an Arabic translation for legal enforceability, though English versions are commonly used alongside Arabic copies. You must ensure compliance with Saudization (Nitaqat) requirements if applicable to your company size and sector, including proper documentation of the employee's nationality and any related obligations. The letter must reference GOSI registration requirements and include mandatory social insurance coverage details. For expatriate employees, you need to include visa sponsorship terms and any restrictions on employment mobility. The document should also incorporate any sector-specific requirements mandated by relevant ministries or regulatory bodies that govern your industry.