What Is The New Contract-Based Employment System Replacing Kafala In Saudi Arabia?

Saudi Arabia has officially announced to end of the 50-year-old Kafala System to sponsor labourers in the country. The sponsorship program was criticised for being a modern slavery system as the workers were subjected to various levels of restrictions in terms of quitting and switching jobs, and even leaving the country.

The controversial Kafala system has now been replaced with a contract-based employment system to improve and align with the Saudi Vision 2030. Under the new system, the workers will have the following freedoms in comparison to the earlier system.

Workers will have more freedom to change jobs as they can move to a new employer without needing approval from their current one. Employees can also leave the country without an exit visa or sponsor consent.

Read also: End Of The 50-Year Kafala System: Analyzing Its Impact On Indian Workers

Also, workers will have improved access to labour courts and complaint mechanisms. The contract will be legally enforceable, granting employees the ability to claim their rights directly through enforcement courts.

The working culture will become digital with standardized agreements helping employees protect their rights, ensure timely wage payments, and reduce workplace disputes.

The contract will be integrated with digital platforms like Qiwa and Najiz, facilitating seamless registration and verification processes.

As per the officials, these reforms will boost productivity, reduce exploitation, and improve Saudi Arabia’s reputation among investors.