In a landmark labor reform hailed worldwide, Saudi Arabia has officially scrapped the controversial Kafala System, a move that promises to transform the lives of millions of migrant workers in the kingdom. The decades-old sponsorship framework had long bound employees to their employers, giving sponsors near-absolute control over job changes, travel, and even the ability to leave the country.

What the Kafala system meant

Under the Kafala, or sponsorship, system, migrant workers were tethered to a single employer for the entirety of their stay. Permission was required to switch jobs or travel abroad, leaving workers vulnerable to exploitation, wage theft, and abuse. Human rights groups have frequently condemned the system as a form of modern-day slavery, citing harrowing cases of South Asian laborers—including Indians—who suffered in dangerous conditions on mega-projects across the Gulf.

A transformative shift

The reform, announced earlier this year, replaces Kafala with a contract-based employment model designed to enhance mobility and independence. Workers can now switch jobs after their contract ends without requiring employer approval, and can exit or re-enter the country by simply notifying their employer electronically.

“This is a monumental step forward for labor rights,” said a senior Saudi labor official. “We are empowering workers with dignity, freedom, and legal protection, while aligning our workforce with the objectives of Vision 2030 and the National Transformation Program.”

Authorities estimate that over one million migrant workers will directly benefit from the new system. Beyond improving individual lives, officials say the reform will also strengthen the kingdom’s competitiveness in attracting global talent.

The Gulf’s broader labor reform trend

Saudi Arabia is following the footsteps of other Gulf nations that have reformed the Kafala system. Bahrain ended it in 2009, while the UAE relaxed the rules in 2015, allowing job-seeking visas for workers with expired contracts. Yet, countries such as Kuwait, Qatar, and Oman continue to enforce strict sponsorship laws.

For millions of Indian migrant workers, the dismantling of Kafala marks a historic turning point. Freed from decades of restrictive labor practices, they now have a clearer path toward fairer, safer, and more dignified employment in the kingdom.