25/10/2025
In a historic decision, Saudi Arabia has officially abolished the decades-old Kafala or sponsorship system, granting new rights and freedoms to millions of migrant workers. This marks a major shift in the country’s labour laws, impacting around 13 million foreign workers, many of whom are from India, Pakistan, Bangladesh, and the Philippines.
Under the previous Kafala system, a worker’s employment and residency were tied to a single employer, restricting their ability to change jobs, travel, or leave the country without the employer’s permission. The system had long been criticised for enabling exploitation and forced labour, as workers often faced withheld passports, unpaid wages, and poor working conditions.
The new labour reforms allow workers to change jobs without employer consent after their contract ends, travel freely without exit permits, and hold residency independent of a single sponsor. These changes are expected to create a fairer and more transparent labour environment, in line with global human rights standards.
For millions of Indian and Asian migrant workers, this move is a major relief, offering better job mobility, legal protection, and dignity at work. The reform is also part of Saudi Arabia’s Vision 2030 plan, which aims to modernise the economy, attract global investment, and improve its international image.
The true impact, however, will depend on how effectively these new rights are implemented and enforced in the years ahead.