The End of Kafala—Saudi Arabia Abolishes Controversial Labor Sponsorship System

 



[Jeddah, KSA] In a monumental step toward labor reform, Saudi Arabia has officially dismantled its decades-old Kafala (sponsorship) system, ushering in a new era for millions of migrant workers. The move, effective since its announcement in June 2025, replaces the restrictive framework with a modern, contract-based employment model, dramatically reshaping the Kingdom's labor landscape.

For nearly 70 years, the Kafala system, which translates to "sponsorship," legally tied a foreign worker's visa and employment status to a single, local employer, known as the Kafeel. This structure was widely criticized by human rights organizations as a facilitator of exploitation, often likened to "modern-day slavery," as it gave employers near-total control over workers' lives.

The abolition affects an estimated 13 million foreign workers—roughly 42% of Saudi Arabia's population—who form the backbone of sectors like construction, domestic work, and services.

What Changes for Migrant Workers?

The new regulations, implemented under the government's Vision 2030 initiative to diversify the economy and modernize the country's image, grant workers essential new rights and freedoms:

  1. Freedom to Change Employers: Workers can now transfer to a new job without needing the consent of their current employer, provided they have completed their contract or followed the required notice period.

  2. End of the Exit Permit: Workers no longer require an employer's permission (an "exit visa") to leave the country for travel or final exit. They can now apply for these permits directly, a restriction that previously trapped many in abusive situations.

  3. Enhanced Legal Access: The reform expands access to labor courts and complaint mechanisms, allowing workers to seek justice and report abuse without fear of automatic deportation or legal limbo.

  4. Contractual Autonomy: Employment is now governed by formal, fixed-term contracts that are more transparent and legally binding on both sides.

Why the Historic Change Now?

The decision is driven by both strategic and humanitarian concerns:

  • Economic Modernization: By aligning its labor laws with international standards, Saudi Arabia aims to create a more attractive, competitive, and flexible labor market to draw in high-skilled foreign talent, a key goal of Vision 2030.

  • International Scrutiny: Years of sustained criticism from global organizations, including the International Labour Organization (ILO), regarding human rights and worker abuse under Kafala accelerated the need for reform.

  • Regional Trend: The move follows similar, though often partial, reforms in other Gulf Cooperation Council (GCC) countries, such as Qatar ahead of the 2022 FIFA World Cup, setting a new regional precedent for worker rights.

The Road Ahead: Implementation is Key

While the legal abolition marks a monumental victory for workers' rights, experts and activists caution that the true success of the reform hinges on vigorous enforcement and implementation.

Loopholes and the lack of awareness among both employers and employees could slow the practical application of these freedoms. The Kingdom's commitment to transparently and effectively translating these laws into tangible improvements for every worker on the ground will be the ultimate test of this historic policy shift.

References & Further Reading

  1. Saudi Arabia Abolishes Kafala System for Immigrants, Grants New Rights to Millions (The Economic Times)

  2. Kafala system explained: Saudi Arabia's historic move to end a 70-year labour framework (Business Today)

  3. Expatriate Workers' Rights in Saudi Arabia: Continuous Protection and Comprehensive Legislation (Saudi Press Agency - SPA)

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