Saudi Arabia has made a significant step forward in its labour reform efforts; it has officially scrapped the controversial kafala system, which has governed the lives of millions of migrant workers for over 50 years.

Decades-old 'Modern slavery' ends as Saudi scraps Kafala system 

In a significant development and major relief for millions of migrant workers, Saudi Arabia has officially announced to end of the Kafala System, providing more freedom and rights to work in the country. The plan to end the Kafala labour system was announced in June as part of Crown Prince Mohammed bin Salman's 'Vision 2030', a multi-trillion-dollar plan to clean the reputation of the country to attract foreign investors, including the 2029 Asian Winter Games, and reforms.<h3>What is the kafala system?</h3>The five-decade-old Kafala labour sponsorship system, which had been in place in Saudi Arabia and much of the Middle East, was an inhuman control over employees, which included the seizure of travel documents and the decision on when they could change their jobs or leave the country.&nbsp;This system was introduced in the 1950s to regulate the flow of skilled and unskilled foreign workers from India and other Southeast Asian nations. To prevent the local economy from being overwhelmed by cheap labour, every incoming worker was 'tied' to a kafeel, a sponsor who could be either an individual or a company.&nbsp;This kafeel held extensive authority over the workers’ lives, deciding their place of employment, controlling their wages, and even determining where they could live.&nbsp;More disturbingly, workers were barred from filing abuse complaints without their sponsor’s approval — a clause that seemed both illogical and unjust. Although conditions were somewhat better for skilled or white-collar employees, the system drew widespread criticism from labour and human rights organisations.<h3>How the kafala system will affect the Indian labourers</h3>The end of this system is a landmark move in Gulf labour reforms, aligning with international human rights standards and responding to long-standing pressures from human rights organisations like the International Labour Organisation (ILO), but it has significantly affected around 2.3 to 2.6 million Indian migrant workers residing and working in the kingdom. In addition, it is expected to affect nearly 13 million foreign workers overall, with Indians being the largest expatriate worker group.&nbsp;No matter how exploited they were, and now finally received relief, but due to this system, Indian workers were getting more jobs as compared to other nations, resulting in a record of receiving a high amount of remittance for India. Based on the last reported fiscal year (2023-24), Saudi Arabia accounted for approximately 6.7 per cent of India's total inward remittances.&nbsp;Despite gaining more freedom and mobility, workers may still face challenges in securing new jobs, as individual sponsors might feel uncertain or hesitant about hiring foreign labourers easily without any terms and conditions.

This system was introduced in the 1950s to regulate the flow of skilled and unskilled foreign workers from India and other Southeast Asian nations. To prevent the local economy from being overwhelmed by cheap labour, every incoming worker was 'tied' to a kafeel.

In a significant development and major relief for millions of migrant workers, Saudi Arabia has officially announced to end of the Kafala System, providing more freedom and rights to work in the country. The plan to end the Kafala labour system was announced in June as part of Crown Prince Mohammed bin Salman's 'Vision 2030', a multi-trillion-dollar plan to clean the reputation of the country to attract foreign investors, including the 2029 Asian Winter Games, and reforms. What is the kafala system? The five-decade-old Kafala labour sponsorship system, which had been in place in Saudi Arabia and much of the Middle East, was an inhuman control over employees, which included the seizure of travel documents and the decision on when they could change their jobs or leave the country. This system was introduced in the 1950s to regulate the flow of skilled and unskilled foreign workers from India and other Southeast Asian nations. To prevent the local economy from being overwhelmed by cheap labour, every incoming worker was 'tied' to a kafeel, a sponsor who could be either an individual or a company. This kafeel held extensive authority over the workers’ lives, deciding their place of employment, controlling their wages, and even determining where they could live. More disturbingly, workers were barred from filing abuse complaints without their sponsor’s approval — a clause that seemed both illogical and unjust. Although conditions were somewhat better for skilled or white-collar employees, the system drew widespread criticism from labour and human rights organisations. How the kafala system will affect the Indian labourers The end of this system is a landmark move in Gulf labour reforms, aligning with international human rights standards and responding to long-standing pressures from human rights organisations like the International Labour Organisation (ILO), but it has significantly affected around 2.3 to 2.6 million Indian migrant workers residing and working in the kingdom. In addition, it is expected to affect nearly 13 million foreign workers overall, with Indians being the largest expatriate worker group. No matter how exploited they were, and now finally received relief, but due to this system, Indian workers were getting more jobs as compared to other nations, resulting in a record of receiving a high amount of remittance for India. Based on the last reported fiscal year (2023-24), Saudi Arabia accounted for approximately 6.7 per cent of India's total inward remittances. Despite gaining more freedom and mobility, workers may still face challenges in securing new jobs, as individual sponsors might feel uncertain or hesitant about hiring foreign labourers easily without any terms and conditions.

This system was introduced in the 1950s to regulate the flow of skilled and unskilled foreign workers from India and other Southeast Asian nations. To prevent the local economy from being overwhelmed by cheap labour, every incoming worker was 'tied' to a kafeel.

What is Kafala system? Saudi Arabia abolishes labour system that can affect 2.3 million Indian workers

Reforms which take effect in March 2021 will allow foreign workers the right to change jobs by transferring sponsorship to new employers.

Saudi Arabia reforms its Kafala system for foreign workers

The people of Lebanon are preparing for a tough winter as Lebanon faces financial ruin amid a lack of aid and leadership. Watch report.

Lebanon faces economic crisis amid COVID-19 pandemic

Even before the COVID-19 pandemic struck the Lebanese economy was in crisis. For the migrant workers who had moved to Lebanon in search of a better life, things have become worse. Watch report.

Lebanon migrant workers: 'Kafala system' leads to exploitation

In fresh news coming out of Qatar related to labour laws in the country, labourers may find some reprieve after changes in the pre-existing laws.

As part of country’s Kafala employment system, all labourers were required to fetch the permission of their ongoing employers before switching jobs.

International criticism for Kafala

This provision has been heavily criticised by international labour groups and organisations. Qatar has been for long in scathing hot water for its treatment of labourers and exploitation of cheap labour in the country, which is rich in oil and natural gas.

Also read:&nbsp;<a href="/world/qatar-enacts-key-worker-reforms-amid-criticism-324134" hreflang="en">Qatar enacts key worker reforms amid criticism</a>

After news of the country hosting the upcoming 2022 FIFA World Cup broke out, fresh narratives of exploitation started spurring up from the country.

New labour laws in the country imply that the Kafala system is effectively ‘dismantled’, as a United Nations labour body put it on Sunday.

Starting now, migrant labourers will no longer require the permission of their employers to terminate the contract and begin a fresh job, the International Labor Organization said.

Change to follow

Another major change has taken shape in the country’s labour laws. Qatar now has a minimum monthly wage of 1,000 Riyals ($275). Once the new provisions are published in the country’s official gazette, the law will take effect, as per the ILO.

Additionally, employers will now be required to provide allowances for food and rent in case the wage is unable to cover it.

Also read:&nbsp;<a href="/world/qatar-wins-air-blockade-case-at-international-court-of-justice-313286" hreflang="en">Qatar wins air blockade case at International Court of Justice</a>

Kafala system has been heavily criticised for binding workers to employers, and saw a minor change in 2018 as well. Earlier, the employers could decide whether their worker could leave the job and/or their country.

At the same time, the country’s citizens have one of the world’s highest per-capita incomes owing to its rich reserves. Owing to the oil and natural gas reserves, the country is witnessing a boom in construction. Employees come from South Asian countries like India and Nepal, who fell within the ambit of the Kafala system until now.

Many activists felt that the system allowed for the abuse of foreign workers and denial of rights.

In fresh news coming out of Qatar related to labour laws in the country, labourers may find some reprieve after changes in the pre-existing laws. As part of country’s Kafala employment system, all labourers were required to fetch the permission of their ongoing employers before switching jobs.

In fresh news coming out of Qatar related to labour laws in the country, labourers may find some reprieve after changes in the pre-existing laws. As part of country’s Kafala employment system, all labourers were required to fetch the permission of their ongoing employers before switching jobs. International criticism for Kafala This provision has been heavily criticised by international labour groups and organisations. Qatar has been for long in scathing hot water for its treatment of labourers and exploitation of cheap labour in the country, which is rich in oil and natural gas. Also read: Qatar enacts key worker reforms amid criticism After news of the country hosting the upcoming 2022 FIFA World Cup broke out, fresh narratives of exploitation started spurring up from the country. New labour laws in the country imply that the Kafala system is effectively ‘dismantled’, as a United Nations labour body put it on Sunday. Starting now, migrant labourers will no longer require the permission of their employers to terminate the contract and begin a fresh job, the International Labor Organization said. Change to follow Another major change has taken shape in the country’s labour laws. Qatar now has a minimum monthly wage of 1,000 Riyals ($275). Once the new provisions are published in the country’s official gazette, the law will take effect, as per the ILO. Additionally, employers will now be required to provide allowances for food and rent in case the wage is unable to cover it. Also read: Qatar wins air blockade case at International Court of Justice Kafala system has been heavily criticised for binding workers to employers, and saw a minor change in 2018 as well. Earlier, the employers could decide whether their worker could leave the job and/or their country. At the same time, the country’s citizens have one of the world’s highest per-capita incomes owing to its rich reserves. Owing to the oil and natural gas reserves, the country is witnessing a boom in construction. Employees come from South Asian countries like India and Nepal, who fell within the ambit of the Kafala system until now. Many activists felt that the system allowed for the abuse of foreign workers and denial of rights.

Qatar's heavily criticised kafala system officially 'dismantled', more labour reforms underway

What Is The Kafala System? Why Is Qatar Abolishing It Now? What is the Kafala labour system? Why is Qatar abolishing it now?

Gravitas: Qatar To Abolish 'kafala' Labour: New Minimum Wage Law To Be Introduced

Qatar moves to announce abolishment of kafala system. Watch video to know more.

Qatar moves to announce abolishment of kafala system

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