Onboarding Process: Step-by-Step Explanation

Step 1: Job Offer and Acceptance 📩

Trigger: After selecting the ideal candidate.

Action:

• Job Title: Define the position, responsibilities, and reporting structure.
• Compensation: Outline salary, allowances, and any additional benefits.
• Start Date: Agree on the employee’s start date.
• Working Hours: Mention the standard 8-hour workday and 48-hour workweek.
• Benefits Overview: Include benefits like social insurance and any company-specific perks.
• Probation Period: Typically up to 3 months in Saudi Arabia.

Outcome: Once the candidate accepts the offer, move forward with formalizing the employment contract.

Step 2: Employment Contract 📝

When It’s Used: After offer acceptance.

Action: Draft an employment contract that complies with Saudi labor law, including:

• Job Description: Define the employee’s duties clearly.
• Compensation: Specify salary, bonuses, and allowances.
• Leave Entitlements:
  • Annual Leave: 21 days per year (with additional leave after 5 years of service).
  • Sick Leave: Typically up to 30 days (with medical certification).
  • Public Holidays: At least 10 official holidays annually.
• Working Hours: Define working hours, breaks, and overtime details.
• Termination Conditions: Outline notice periods and reasons for dismissal.

Outcome: A signed contract formalizes the employment relationship and ensures legal compliance.

Step 3: Tax and Social Insurance Registration 💰

When It’s Used: Before the employee starts work.

Action:

• Tax Registration: Register the employee with the Saudi Tax Authority for payroll tax compliance.
• Social Insurance Enrollment: Enroll the employee in the national social insurance system.
• Bank Account: Help the employee set up a local bank account for salary payments.

Outcome: Ensures compliance with Saudi tax and social insurance obligations.

Step 4: Health and Safety Induction 🦺

When It’s Used: On or before the first day.

Action:

• Safety Guidelines: Provide safety protocols relevant to the role.
• Emergency Procedures: Discuss evacuation plans and first-aid procedures.
• Personal Protective Equipment (PPE): Provide required PPE for applicable roles.

Outcome: Employees are aware of workplace safety and emergency protocols.

Step 5: Payroll and Benefits Enrollment 📊

When It’s Used: Within the first week.

Action:

• Bank Details: Collect employee’s bank details for salary processing.
• Benefits Enrollment: Register the employee for health insurance and other company-provided benefits.
• Overtime Policy: Explain the overtime pay rates as per Saudi labor law.

Outcome: Employees are integrated into payroll and benefit systems.

Step 6: Workplace Policies and Training 📚

When It’s Used: Within the first month.

Action:

• Code of Conduct: Outline expectations regarding ethics, behavior, and professionalism.
• Training Programs: Provide role-specific and compliance training.
• Performance Metrics: Define key performance indicators (KPIs) and review processes.

Outcome: Employees are familiar with company policies, expectations, and available resources.

Step 7: Probation and Feedback Period 📅

When It’s Used: During the probation period (up to 3 months).

Action:

• Performance Reviews: Assess employee performance and cultural fit.
• Feedback and Adjustments: Provide constructive feedback and role adjustments if necessary.
• Employment Confirmation: Confirm permanent employment status or discuss required improvements.

Outcome: Completion of the probation period results in permanent employment or a mutual decision for adjustment.

Summary Table of Key Onboarding Steps in Saudi Arabia

Key Takeaways:

• Employment contracts in Saudi Arabia must clearly define job roles, compensation, and leave entitlements.
• Onboarding includes mandatory tax registration and enrollment in the social insurance system.
• A structured onboarding process ensures compliance with Saudi labor laws and promotes smooth employee integration.