Saudi Reforms End Kafala Era, Puts Migrant Workers on Equal Footing with Local Employees

Landmark Labor Reform: Big news is coming from Saudi Arabia, where the infamous Kafala system, known as "modern slavery," has finally ended. This new rule came into effect, and it is no less than a celebration for millions of foreign workers. The 50 year old labor law has been removed and now a contract-based system has come in, in which workers will get more freedom and security. This is part of Saudi's Vision 2030, and especially for the approximately 13 million expat workers from countries like India, this is a wonderful gift. These people are the backbone of construction, domestic work and service sectors!

What was the Kafala system?

This is the name of 'sponsorship,' which started in the 1950s in Gulf countries like Saudi Arabia, Qatar, and Kuwait. Initially, it was good—local sponsors (kafeels) provided food and shelter to workers to bring in cheap labor for the oil boom. But it soon became a tool of control. Employers kept passports, job changes were not allowed, leaving the country was difficult, and complaints faced the threat of deportation. Unpaid wages, beatings, and imprisonment became commonplace. Human rights groups had been complaining for years that this took away basic freedoms.

50 years of shackles broken!

The announcement was made in June 2025, and officially ends today. Now, you can change jobs and even leave the country without a kafeel's permission. Everything will be based on contract, so workers will have free movement. According to the Saudi Press Agency, this is a major step towards economic diversification and social change.

What changed in the new labor model?

• Easy Job switching: Join a new company without your old boss's permission.
• Sponsors' power diminished: Their control over residency and exit permits will end.
• Better protection: Exploitation such as passport theft and non-payment of wages will be curbed.

This is an attempt to create a fair workplace.

Impact on Indian workers, in particular?

Indians constitute a significant portion of the 13 million expats in Saudi Arabia. We are the ones in the construction, domestic, and service industries. Now, the fear of getting trapped in toxic jobs will be reduced, returning home will be easier, and remittances will also increase. Exploitation rates will fall, and dignity and security will be achieved—how happy will families be!

What does this mean overall?

This is a response to global criticism and could inspire neighboring countries as well. Experts say this is a major step forward in human migration policy. Human rights advocates applauded but are saying, "Keep an eye on implementation; otherwise, it will remain on paper."