"Kafala" system scrapped in Saudi Arabia

As part of the various reforms currently being implemented in Saudi Arabia, the sponsorship system for foreign labour, also known as the "Kafala" system, has been scrapped as of Sunday 14 March. The change was introduced as part of the Labour Reform Initiative (LRI) announced last November. 

The initiative, developed by the Saudi Ministry of Human Resources and Social Development aims to improve the contractual relationship, allowing greater flexibility for foreign employees in their relationship with the employer.

The new system will allow foreign employees to exit, return, final exit, and move from one job to another without the need for the employer's approval provided that they have worked for 12 months. The worker can also submit an electronic notification to the employer, requesting the transfer of service 90 days before the transfer or when he wants to terminate the contractual relationship.

By the end of 2020, the number of workers in the Saudi private sector reached about 8.02 million individuals. Of these 6.27 million were foreigners (78.2 percent), and 1.75 million Saudis (21.8 percent), according to data from the General Insurance Corporation.

According to a previous statement by the Saudi Ministry of Labor, the initiative enhances the competitiveness of the Saudi labour market with global labour markets, raises its classification in international competitiveness indicators, and attracts competencies in the labour market.

While there remain gaps in the system and permission still needs to be granted for termination of the contract, the LRI will bring much relief for millions of workers, many of who have welcomed the reform. 

Source: commonspace.eu with various agencies. 
Picture: Construction workers in Saudi Arabia. (Twitter: @KLiveHUB). 

Related articles

Editor's choice
News
Uzbekistan calls for bigger voice for Central Asia in the UN

Uzbekistan calls for bigger voice for Central Asia in the UN

Uzbekistan called for a more effective and representative United Nations on September 23, as presidential administration chief Saida Mirziyoyeva used her address to the UN General Assembly to seek support for the country’s candidacy for a nonpermanent Security Council seat in 2035–2036. Speaking at the Assembly’s 81st session in New York, Mirziyoyeva argued that international cooperation remains necessary despite growing geopolitical divisions. She endorsed UN Secretary-General António Guterres’ UN80 reform initiative and called for an expanded Security Council, arguing that international rules should be applied consistently rather than according to the interests of powerful states. Uzbekistan’s planned chairmanship of the Non-Aligned Movement in 2027 was presented as another platform for promoting dialogue. Her emphasis on multilateralism also fits a broader Central Asian effort to increase the region’s role in international institutions. Kyrgyzstan, for example, will hold its first Security Council seat in 2027–2028. Mirziyoyeva also highlighted regional cooperation, pointing to improved relations among Central Asian states over longstanding border and water disputes. On Afghanistan, she urged countries not to view it solely as a security threat, stressing the importance of creating conditions for peaceful development. She linked Uzbekistan’s international agenda to domestic reforms, citing economic growth, falling poverty and expanded education. Climate and water security also featured prominently, with the Aral Sea serving as an example of the consequences of poor environmental management. (click image to read more)

Popular

Editor's choice
Interview
Thursday Interview: Murad Muradov

Thursday Interview: Murad Muradov

Today, commonspace.eu starts a new regular weekly series. THURSDAY INTERVIEW, conducted by Lauri Nikulainen, will host  persons who are thinkers, opinion shapers, and implementors in their countries and spheres. We start the series with an interview with Murad Muradov, a leading person in Azerbaijan's think tank community. He is also the first co-chair of the Action Committee for a new Armenian-Azerbaijani Dialogue. Last September he made history by being the first Azerbaijani civil society activist to visit Armenia after the 44 day war, and the start of the peace process. Speaking about this visit Murad Muradov said: "My experience was largely positive. My negative expectations luckily didn’t play out. The discussions were respectful, the panel format bringing together experts from Armenia, Azerbaijan, and Turkey was particularly valuable during the NATO Rose-Roth Seminar in Yerevan, and media coverage, while varied in tone, remained largely constructive. Some media outlets though attempted to represent me as more of a government mouthpiece than an independent expert, which was totally misleading.  Overall, I see these initiatives as important steps in rebuilding trust and normalising professional engagement. The fact that soon a larger Azerbaijani civil society visits to Armenia followed, reinforces the sense that this process is moving in the right direction." (click the image to read the interview in full)