
In a welcome relief for millions of migrant workers, Saudi Arabia has decided to replace the Kafala System with a contractual model, giving them more rights and freedom to work in the kingdom, according to the official Saudi Press Agency. The Kafala System (sponsor system) had been in place in Saudi Arabia and much of the Middle East for decades.
The Kafala System refers to a binding contract between migrant workers and their local sponsor, under which they can only work for the specific employer throughout the period of their residence in the country.
Under the Kafala System, the employer, who is also the sponsor of the migrant workers, had an undue legal advantage over them as they were not allowed to switch jobs without the Kafala’s consent.
Due to its exploitative nature, especially on migrant workers who come to the Middle East for jobs, including domestic work, construction, etc, critics have often called it modern-day slavery.
They pointed out that the kafala system created a sense of ownership of migrant workers by some employers, as all major decisions, including changing employers or exiting the country, required their authorisation.
The Kafala system had come under international spotlight ahead of the 2022 FIFA World Cup in Qatar, where thousands of migrant workers, mostly from South Asian countries including India died, during construction while working under excruciating circumstances.
The changes align with the Kingdom’s Vision 2030 and the National Transformation Program. The changes are expected to benefit over one million migrant workers in Saudi Arabia, the Saudi Press Agency reported.
The new contract system facilitates job mobility, allowing workers to transfer to new employment upon contract completion without requiring prior employer approval, the SPA said. It also grants workers the right to exit, return, and travel permanently by electronically notifying the employer, eliminating the need for employer consent.
According to the Saudi Press Agency, authorities said the new system will enhance worker independence and bolster the global appeal of the Saudi labour market.
In 2009, Bahrain became the first country in the Middle East to abolish the Kafala system, while the UAE diluted its Kafala system in 2015, allowing migrant workers whose contracts have expired to obtain a new permit and remain in the country on a 6-month job seeker visa.
GCC countries that still have the strict Kafala system in place are Kuwait, Qatar, and Oman.