Riyadh: Saudi Arabia has officially scrapped its 50-year-old Kafala system, a major labour reform hailed as historic for migrant workers. First announced in June 2025, the decision affects around 1.34 crore foreign workers, mainly from India, Bangladesh, Nepal and the Philippines.
What Was The Kafala System?
The Kafala or sponsorship system gave employers complete control over migrant workers’ legal status, residency, job mobility and travel. Workers often needed permission to leave the country, change jobs or access legal help. Each employee was tied to a ‘kafeel’ (sponsor).
Why It Faced Global Criticism
Initially designed to regulate migrant labour in the oil-rich nation, Kafala often enabled abuse. Human rights groups labelled it “modern-day slavery”.
Reports highlighted withheld wages, delayed payments, passport confiscation, restricted movements and limited recourse for workers facing exploitation.
Who Will Benefit Most?
Saudi Arabia hosts 1.34 crore foreign workers, almost 42% of the population. Migrants are key in construction, agriculture, domestic work and services. Historically among the most vulnerable, women in domestic work are likely to gain the most from the reform.
Key Changes In The System
The new framework introduces contract-based employment. Workers can now change jobs without prior employer approval. Exit visas and sponsor consent are no longer required to leave the country. Labour courts and complaint mechanisms provide legal recourse to safely report abuse.
The reforms align with Crown Prince Mohammed bin Salman’s Vision 2030. Saudi Arabia aims to reduce oil dependence, modernise its economy and raise labour standards to global levels.
The changes are expected to attract foreign investment and skilled professionals while signalling a progressive shift in worker rights.
Impact On Indian Workers
Over 1.3 crore Indian migrants in Saudi Arabia stand to benefit from the reforms. Greater independence, legal protections and mobility will improve living and working conditions.
The changes mark a turning point for millions who have long faced uncertainty under the old system.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
