What is Kafala System in Saudi and how its abolition could help millions of Indian migrant workers? | World News

Critics have equated the Kafala system to modern-day slavery. (Photo: Reuters)

In a welcome relief for millions of migrant workers, Saudi Arabia has officially ended the Kafala System, giving them more rights and freedom to work in the kingdom. The Kafala System (sponsor system) had been in place in Saudi Arabia and much of the Middle East for decades.

What is Kafala System?

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.
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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.

Kafala System – modern-day slavery

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.

Kafala system tied migrant workers to their employees. (Photo: Reuters)

They pointed out that the kafala system created a sense of ownership of migrant workers 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.

FILE PHOTO: Workers walk towards the construction site of the Lusail stadium which will be build for the upcoming 2022 Fifa soccer World Cup during a stadium tour in Doha, Qatar, December 20, 2019. REUTERS/Kai Pfaffenbach

Saudi ends Kafala System

Earlier this year, Saudi authorities announced that the kingdom would end the Kafala System and replace it with a contractual model to improve worker mobility and independence.

According to officials, 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.

How Saudi’s new system could help migrant workers

The new contract system facilitates job mobility, allowing workers to transfer to new employment upon contract completion without requiring prior employer approval. It also grants workers the right to exit, return, and travel permanently electronically notifying the employer, eliminating the need for employer consent.

Saudi authorities announced that the kingdom would end the Kafala System and replace it with a contractual model. (Photo: Reuters)

While announcing the changes, Saudi authorities said the new system will enhance worker independence and bolster the global appeal of the Saudi labour market.

Kafala System in other Gulf countries

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.