Understanding the Kafala System in Saudi Arabia | Recent Reforms & How It Works

Understanding the Kafala System in Saudi Arabia | Recent Reforms & How It Works

The Kafala system is a framework used in Saudi Arabia and other Gulf countries to oversee the employment of foreign workers. This system links a worker’s legal status to their local sponsor, known as the “Kafeel.” While the Kafala system has allowed millions of expatriates to work in the region, it has faced criticism for the significant control it gives employers. Recent reforms in Saudi Arabia aim to modernize the labor system, offering more freedom and protections to workers. In this article, we’ll explore the system’s origin, how it works, and the changes shaping its future.

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What is the Kafala System and What is its Origin?

The Kafala system was established in the Gulf to regulate labor migration as these countries experienced rapid economic growth. Initially, the system was designed to fill temporary job openings with foreign workers without granting them permanent residency rights. Under Kafala, a foreign worker’s immigration status depends entirely on their employer, who acts as their sponsor. This sponsor has control over the worker’s visa, work permit, and residency, which has led to both advantages and challenges for migrant labor.

Also Read: Temporary Work Visa in Saudi Arabia

How Does the Kafala System Work?

The Kafala system operates by requiring all foreign workers to have a local sponsor, either an individual or a company. The Kafeel is responsible for managing the worker’s residency, visa, and legal status during their time in Saudi Arabia. This means that workers cannot change jobs, exit the country, or renew their residency without the permission of their sponsor. Key features of the system include:

  • Workers rely on their sponsor for visa and residency.
  • Changing jobs requires the sponsor’s consent.
  • Workers need the Kafeel’s approval to leave the country.

While the system ensures employers meet their legal obligations, it has also been criticized for creating an unequal balance of power.

Recent Changes and the Future of the Kafala System

In March 2021, Saudi Arabia introduced the Labor Reform Initiative (LRI) to reform key elements of the Kafala system. The changes give workers more freedom to switch jobs, travel, and exit the country without their sponsor’s consent. These reforms are part of Saudi Arabia’s Vision 2030 plan, which seeks to modernize the job market and align labor laws with international standards.

Some notable changes include:

  • Workers can now leave their jobs without a Kafeel’s approval under certain conditions.
  • Expatriates are allowed to travel abroad without employer permission.
  • The reforms aim to reduce the risk of worker exploitation and improve the overall labor environment.

However, despite these changes, some aspects of the Kafala system remain in place. The system is expected to undergo further reforms as the country works toward a more inclusive labor market.

Also Read: Future of Labour Migration from Pakistan to KSA

How Can I Apply for Kafala in Saudi Arabia?

To apply for a Kafala sponsorship in Saudi Arabia, you must secure a job offer from a Saudi employer or company. Once you have a confirmed offer, your employer, as your Kafeel, will submit the required paperwork to the Ministry of Labor and Social Development. This process includes:

  1. The employer files for a work visa.
  2. After visa approval, you can enter Saudi Arabia to start working.
  3. Your employer manages your residency permit (Iqama) and legal status.

This system ensures that expatriates enter and work in the country with legal support from their sponsor.

Risks Faced by Workers Under the Kafala System

While the Kafala system provides opportunities for foreign workers to earn a living in Saudi Arabia, it also exposes them to certain risks, including:

  • Exploitation and Abuse: Employers hold considerable power over workers, which can sometimes lead to unfair treatment or even abuse.
  • Restricted Mobility: Workers cannot change jobs or leave Saudi Arabia without their sponsor’s permission, which can trap them in poor working conditions.
  • Confiscation of Passports: In some cases, employers may hold workers’ passports, preventing them from leaving the country without consent.

These risks have been a point of concern for human rights groups, although recent reforms aim to reduce such vulnerabilities.

Also Read: NEOM City Jobs Saudi Arabia

Benefits of the Kafala System

Despite its challenges, the Kafala system provides several benefits to both workers and employers. These include:

  • Job Opportunities: The system facilitates the employment of millions of expatriates, particularly in sectors like construction, healthcare, and domestic work.
  • Legal Framework: Employers have a clear legal process for hiring and managing foreign workers, ensuring compliance with Saudi labor laws.
  • Labor Supply Flexibility: The system allows Saudi employers to easily meet labor demands, particularly for temporary or seasonal work.

While the Kafala system has its downsides, it continues to be a critical tool for managing labor migration in the region.

Conclusion:

The Kafala system has been a vital part of Saudi Arabia’s labor market, providing both opportunities and challenges for foreign workers. However, its structure, which gives employers significant control over workers, has been widely criticized. Recent reforms under Saudi Arabia’s Vision 2030 are changing this dynamic, giving workers more freedom and legal protections. While the future of the system is still unfolding, it is clear that Saudi Arabia is moving toward a more balanced and equitable labor environment.

FAQs:

Who can be a Kafeel in Saudi Arabia?

A Kafeel must be a Saudi citizen or a local company licensed to sponsor foreign workers. This person or entity takes responsibility for the worker’s legal status in the country.

Can I change jobs under the Kafala system?

Yes, under the recent reforms, workers can change jobs without needing their Kafeel’s approval, provided they meet certain conditions, such as completing a portion of their contract.

What rights do workers have under the Kafala system?

Workers have the right to timely wages, fair treatment, and legal recourse in disputes. Recent reforms also allow more freedom to change jobs and leave the country.

What are the main sectors that hire workers under the Kafala system?

Key sectors include construction, healthcare, domestic work, hospitality, and oil & gas, with millions of expatriates working in these fields.

How has Vision 2030 impacted the Kafala system?

Vision 2030 has introduced significant labor reforms, making it easier for workers to switch employers, travel, and enjoy improved legal protections. These changes are aimed at creating a fairer and more modern labor market.

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