Saudi Arabia ends the kafala system to strengthen worker rights

Saudi Arabia has formally abolished the kafala sponsorship system, which is a move that could reshape labour rights across the Gulf.

This reform, part of the Kingdom’s Vision 2030 plan, introduces new freedoms for over 13 million migrant workers and signals growing momentum toward fairer, more transparent employment standards.

The kafala (sponsorship) system, established in the 1950s, tied workers’ legal status to their employers, leaving many vulnerable to exploitation and abuse.

Migrant workers faced restrictions on movement, withheld wages, and limited recourse under the law.

By dismantling this system, Saudi Arabia is increasingly aligning its labour framework with international human rights standards.

The reform replaces the sponsorship model with a modern, contract-based employment system. Under the new rules, migrant workers can:

These changes, supported by the Qiwa and Absher digital platforms, are designed to improve transparency and reduce employer manipulation.

The reform also extends to domestic workers, who are often excluded from labour law protections while facing heightened risks of exploitation under tied visa systems.

Through the Musaned e-service platform, domestic worker contracts can now be transferred to other employers, with transfers monitored by the government to prevent abuse.

The reform also guarantees annual leave, rest days, and wage protection.

The reform applies to more than 13 million migrant workers, including large numbers from India, Bangladesh, Pakistan, and the Philippines who have played a crucial role Saudi Arabia’s economy.

This marks a turning point for workers who have built the Kingdom’s cities, hospitals, and industries.

It recognises that safe, fair, and voluntary work must be the foundation of a strong national economy.

While the end of kafala is a milestone, ensuring that reforms translate into real protection remains a challenge.

“This progress comes after a decade of advocacy for the rights of migrant workers, and the need to dismantle systems that allow for modern slavery to persist in the 21st century,” Walk Free’s Founding Director Grace Forrest explains.

“Walk Free will continue to monitor the implementation of these significant reforms, but this represents a massive step forward for a country that our estimates show has the 4th highest prevalence rate of modern slavery in the world.

“At its core, this change represents the now tangible chance of freedom and dignity for tens of thousands of migrants working across the construction, hospitality, domestic labour, and health sectors.”

Strong enforcement, access to justice, and awareness campaigns are important to prevent exploitation and uphold human rights in practice.

The Ministry of Human Resources and Social Development has launched new reporting tools and partnerships with origin countries to monitor compliance and address abuses.

This change is part of Saudi Arabia’s broader Vision 2030 reform agenda, which aims to modernise the economy and improve conditions for all residents.