KSA to scrap sponsorship system for expatriates
• ‘Kafala’ controls to end by March 2021 • Freedom to change jobs, leave country
Saudi Arabia is to abolish the “kafala” system of expatriates’ sponsorship by their employer, and give foreign workers the right to change jobs, travel, or leave the country without an employer’s permission.
Workers will be able to apply directly for those services through the Absher e-government portal from March 2021, with the relationship between employers and staff based on a new standard contract certified by the government.
“Through this initiative, we aim to build an attractive labor market and improve the working environment,” Deputy Human Resources Minister Abdullah bin Nasser Abuthunain said.
Saudi Arabia, which chairs the Group of 20 major economies (G20) this year, is seeking to boost its private sector as part of the Vision 2030 reform package of economic and social policies to diversify the economy away from oil.
The new labor reforms are expected to attract more high-skilled workers and create greater job opportunities for Saudi nationals. “These changes are not small changes — it’s huge,” said Sattam Alharbi, deputy minister for development of the work environment. “We aim to achieve more inclusion for Saudis, attract talent, improve working conditions, and make Saudi Arabia’s labor market more dynamic and productive.”
Tarek Al-Akil, the president of ACE Group, said the old sponsorship system did not meet the requirements of the employer-employee relationship. He said the new measures were bold and would propel Vision 2030 forward.
The reform package was also welcomed by diplomats in Saudi Arabia from countries with large expat populations in the Kingdom. “It will greatly help Pakistani workers to search for new jobs while living in the Kingdom,” Pakistani Ambassador Raja Ali Ejaz said.
Indian Ambassador Ausaf Sayeed
We aim to build an attractive labor market and improve the working environment.
Abdullah bin Nasser Abuthunain Deputy human resources minister
said the reforms were “well appreciated and a step in the right direction.” He added: “The initiative will make the Saudi labor market more efficient, protect the interests of both the workers and the employers, and go a long way in making the work environment in the Kingdom more attractive to expatriate workers.” Indonesian Ambassador Agus Maftuh Abegebriel said the reforms would provide legal protection for expats working in Saudi Arabia “through a better contractual relationship between workers and employers.”