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Riyadh, October 22: As many as 13 million migrant workers in Saudi Arabia are set to benefit from a landmark reform as the kingdom officially abolishes its decades-old Kafala system. This controversial sponsorship framework had long dictated the lives of foreign workers, controlling their employment, residency, and ability to travel within the country. The announcement, made in June 2025, is being hailed as a historic step toward improving labour rights and welfare. Experts say the reform could fundamentally change the working conditions of millions of South and Southeast Asian migrants. The Kafala system, introduced in the 1950s, tied every worker to a local sponsor, giving employers near-total control over their employees’ lives. Over the years, the system became notorious for abuse, with workers facing withheld wages, passport confiscation, and restrictions on changing jobs or leaving the country. Domestic workers, particularly women, were among the most vulnerable to exploitation. With this historic change, migrant employees will gain greater autonomy and legal protection. Let’s know what the Kafala system in Saudi Arabia is and how its abolition will benefit migrant labourers. Saudi Arabia: 23 Injured After 360-Degree Ride Snaps Mid-Air at Green Mountain Park in Taif; Terrifying Video Surfaces. What Was the Kafala System? Introduced in the 1950s, the Kafala system was a labour sponsorship framework that tied a foreign worker’s legal status entirely to a local employer, known as a Kafeel. Under this system, employers controlled workers’ residency, employment, and movement, including the ability to change jobs or leave the country. Designed initially to regulate the influx of foreign labour during Saudi Arabia’s oil boom, it eventually became notorious for fostering an unequal power dynamic between employers and migrant employees. Saudi Arabia Visa Ban: Saudi Arabian Govt Bans Visas for India, 13 Other Countries Ahead of Hajj 2025; Know Why. Over the decades, the Kafala system faced widespread criticism for enabling exploitation and abuse. Employers could confiscate passports, delay or withhold wages, and restrict workers’ access to authorities. Domestic workers, particularly women, were highly vulnerable, often living in isolation and facing overwork, unpaid wages, or physical and emotional abuse. Human rights organisations frequently described the system as "modern-day slavery" due to the lack of basic rights and protections for millions of foreign workers. How Will Kafala System's Abolition Benefit Migrant Labourers? The abolition of the Kafala system in Saudi Arabia introduces a contract-based employment model that grants migrant workers greater freedom and protection. Workers can now change jobs without employer consent and exit the country without requiring an exit visa, effectively ending the long-standing cycle of entrapment. This shift restores agency to millions who were previously bound by strict employer control. In addition, the reforms enhance legal protections by providing easier access to labour courts and complaint mechanisms. Workers can report abuse or violations without fear of retaliation, ensuring that grievances are addressed more effectively. By dismantling Kafala, Saudi Arabia not only improves the welfare and dignity of its migrant workforce but also aligns its labour practices with international standards, fostering a safer and fairer environment for millions of foreign employees.