An authorization letter is a document that empowers another person (the authorized party) to perform one or more actions on behalf of the authorizer (individual or company). In an organization, it’s used to grant time-limited or task-specific authority: document collection, signing papers, performing governmental or banking transactions, collecting salaries/dues, representing an employee in a meeting/training, etc. The practical function is to transfer temporary authority with clearly defined boundaries to reduce ambiguity and unintended liability.

HR often needs authorization letters in cases such as:

• When a manager or employee is away (travel or leave) and urgent actions must continue (renewing visas, signing contracts).
• Authorizing local HR staff to receive documents from a government or training authority.
• Delegating someone to collect salary or entitlements if the employee is unavailable.
• Authorizing a branch manager to sign certain internal contracts within limited scope.

In short: whenever a task must be done and the original party is unavailable, a documented authorization is required.

A proper authorization letter should include:

• Identity of the authorizer: full name, ID/iqama number, job title (if within an organization).
• Identity of the authorized person: name, ID/iqama, relationship or role.
• Exact scope of authorization: specify what is allowed and what is not.
• Duration: start date, end date, or condition for termination.
• Performance conditions (e.g., require ID copy, presence of witness, proof of receipt).
• A clause of release or limitation of liability (if the company wishes to do so, with legal caution).
• Signature of the authorizer and (if needed) company stamp, witness signature or notarization if required.

Not all authorizations must be notarized; many operational tasks accept internally signed, verified letters plus copies of identity (authorizer and delegate). However, for sensitive actions (large bank transfers, property transactions, legal contracts), legal certification (notary, attorney, official seal) is often required depending on the receiving authority. As a rule: the more serious the action, the more formal the authorization must be.

Use precise and constrained language: explicitly state the task (e.g., “receive national ID documents from Ministry branch on date …”), avoid general terms like “all necessary actions” unless justified. Add restrictions: “Authorization does not include signing checks or transfers above X amount,” or “the delegate may not transfer sponsorship without new written approval.” Clear constraints protect the company.

The delegate is accountable to the authorizer to carry out only what was authorized. Overstepping authorization may incur legal or financial liability. The company must choose trustworthy delegates and maintain internal controls and verification procedures. Always retain proof (ID copies, receipts, acknowledgment) in the HR records.

Create a company letterhead template with fillable fields: authorizer/delegate details, authorization purpose, duration, signatures, and HR/legal validation. Define an approval flow: signature by manager → HR approval → company stamp if needed. Save a scanned copy in the HR system and maintain a list of recipients of that authorization.

• Authorization to collect employee documents from government agencies or training centers.
• Authorization to collect salary or entitlements when the employee is absent.
• Authorization to process termination, clearance, or exit paperwork on behalf of the departing employee.
• Authorization to attend interviews or sign limited contracts for a branch or department.

These use cases are common and require precise drafting to avoid disputes.

In multinational corporations or when dealing with foreign parties, issuing both an Arabic official version and an English translated version is advisable, with an explicit clause clarifying which version governs in case of discrepancies. In Saudi Arabia, Arabic is typically the legal language, but some authorities may ask for English.

• Limit powers temporally and functionally.
• Document verification steps: identity checks, signature confirmation, witnesses.
• Use internal systems to issue and record authorizations (with timestamps and tracking).
• Train reception/mailing/operations staff to verify delegation before executing.
• Consult legal counsel when the authorization involves significant financial or legal exposure.

Retention periods vary by company policy and audit requirements; but it’s common to keep them for at least 3–5 years for legal and accounting audit purposes. Document all cancellations or extensions in the file.