Copyright timesnownews
Saudi Arabia has scrapped a controversial labour sponsorship system that allowed employers to control labourers life including whether they could change jobs, where they would live, confiscating their documents and also had the right to decide whether they could leave the country by confiscating their documents. This controversial labour framework is being used in several Middle Eastern countries, especially Saudi Arabia, to control foreign labourers rights, however, the inhumane system has now been officially abolished in Saudi Arabia. What is Kafala System? Kafala is a legal framework, adopted in Saudi Arabia 50 years ago to build its economy. The legal framework gave rights to the employers to control a worker’s employment status such as whether or not they can switch jobs.It also gave them rights to decide where they will live and when they can leave the country by confiscating their travel documents such as passports, restricting their movement.The law impacted workers working especially in low-wage jobs such as construction, domestic service, agriculture, hospitality and cleaning.The controversial Kafala system has been often touted as 'Modern Day Slavery' as it was exploiting the labour.Foreign labour and workers, who in the pursuit of earning in Dhirams, would travel to Saudi, used to face long hours of work, wages on hold, and even psychological and physical abuse.Another drawback of the Kafala system was that it had limited protection under the labour laws. What Will improve After Abolition of Kafala System? In June 2025, Saudi Arabia announced its landmark move to abolish the Kafala system.The move will benefit workers from countries likes India, Nepal, Philippines, Bangladesh and Pakistan, who are working in the country.The foreign labour and workers will now be able to change jobs and won’t require permission from their employer.They will also be able to entry, exit the country with no boundations. The workers will also have better legal protections and support in the country.The move will especially help India and South Asians as they account for a major chunk of population who enter the country in search of work. This move would be the latest in a series of economic reforms as the country turns away from dependence on oil revenues under the Kingdom's Vision 2030. The abolition of the sponsorship system would give expatriate workers freedom to secure exit and entry visas, receive the final passport exit stamp without a sponsor, and gain employment without approval from a sponsor. Kafala systems emerged in the 1950s when countries in the Arabian Gulf began hiring migrant workers to accelerate development following the discovery of oil. With inputs from ANI
