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An Offer Letter marks the first formal step in hiring someone in Saudi Arabia. It spells out the key terms of employment like salary, position, start date, and basic benefits that an employer wants to extend to a potential employee. While not as detailed as the final employment contract required under Saudi Labor Law, this initial document helps both parties align their expectations.

In the Kingdom's business landscape, the Offer Letter plays an important role by giving candidates clear written terms before they make career decisions. It typically includes any conditions the candidate must meet, such as passing background checks or obtaining work permits. Though not legally binding on its own, it sets the foundation for the mandatory employment contract that follows under Saudi labor regulations.

Use an Offer Letter when you've identified your ideal candidate and want to formally present employment terms before finalizing the full contract. This initial step proves especially valuable when recruiting senior executives, specialized professionals, or candidates from outside Saudi Arabia who need time to consider relocation and visa requirements.

Send the Offer Letter after completing interviews and background checks, but before investing resources in work permit applications or detailed contract preparation. This timing helps avoid misunderstandings about compensation, position details, or working conditions while giving candidates the written assurance they need to resign from current positions or begin relocation planning under Saudi employment regulations.

• Salary Offer Letter: Basic version focusing on compensation details and standard employment terms, commonly used for entry to mid-level positions
• Business Offer Letter: More comprehensive format for executive roles, including performance incentives and strategic responsibilities
• Counter Offer Letter: Used to retain valuable employees by presenting revised terms in response to external offers
• Promotion Offer Letter: Internal advancement format detailing new role responsibilities and updated benefits
• Job Offer Withdrawal Letter: Formal retraction of previous offer due to changed circumstances or candidate issues

• HR Directors and Managers: Lead the drafting process, ensure compliance with Saudi labor laws, and coordinate offer terms with department heads
• Company Leadership: Review and approve offer terms, especially for senior positions or when special benefits are involved
• Legal Department: Reviews terms to ensure alignment with Saudi employment regulations and company policies
• Hiring Managers: Provide input on role-specific details and requirements
• Job Candidates: Review and consider the offer terms before accepting or negotiating
• External Recruiters: Often facilitate the offer process between companies and candidates, especially for executive positions

• Position Details: Gather exact job title, department, reporting structure, and key responsibilities aligned with Saudi labor classifications
• Compensation Package: Confirm salary, allowances, and benefits according to company policy and local market standards
• Start Date: Specify intended employment start date and any probation period requirements
• Prerequisites: List required documentation, background checks, and work permit requirements for foreign nationals
• Company Information: Include official company name, commercial registration details, and authorized signatory
• Approval Chain: Secure necessary internal approvals from department heads, HR, and finance before finalizing
• Template Selection: Use our platform's Saudi-compliant templates to ensure all mandatory elements are included correctly

• Company Details: Full legal name, commercial registration number, and authorized representative details
• Position Information: Specific job title, department, and location of work as per Saudi labor classifications
• Compensation Terms: Basic salary, housing allowance, transportation allowance, and any performance-based incentives
• Work Schedule: Working hours, days per week, and annual leave entitlement under Saudi labor law
• Employment Conditions: Probation period, medical insurance coverage, and required pre-employment checks
• Visa Status: Work permit requirements for foreign nationals or Nitaqat compliance statements
• Acceptance Terms: Response deadline, offer expiration date, and signature blocks for both parties

An Offer Letter differs significantly from an Employment Letter in several key ways. While both documents relate to employment relationships in Saudi Arabia, they serve distinct purposes and come into play at different stages of the employment process.

• Timing and Purpose: An Offer Letter initiates the employment relationship by proposing terms, while an Employment Letter confirms an existing employment status for third parties
• Legal Weight: Offer Letters present preliminary terms subject to negotiation, whereas Employment Letters state current factual employment details
• Content Scope: Offer Letters detail proposed salary, benefits, and conditions, while Employment Letters typically just verify position and tenure
• Primary Audience: Offer Letters are for potential employees, while Employment Letters are usually for external parties like banks or government agencies
• Duration Relevance: Offer Letters expire if not accepted within a specified timeframe, but Employment Letters remain valid as long as the stated facts are accurate