Saudi Arabia to abolish kafala worker sponsorship system

Muscat: The Saudi newspaper “Maaal” revealed that the Ministry of Human Resources and Social Development is heading, next week, to officially announce an initiative aimed at improving the contract relationship between the expatriate worker and the employer, which is the initiative that officially means abolishing the sponsorship (kafala) system in the Kingdom which has been in place for seven decades , provided that the actual application begins During the first half of next year 2021.

It is expected that more than 10 million expatriates will benefit from the new system.

This initiative comes among other initiatives targeting the quality of life for expatriates, including an initiative related to housing and another to entertainment.

It was supposed to announce tomorrow, Wednesday, the content of the Ministry of Human Resources initiative to improve the relationship between the expatriate worker and the employer, but it was postponed to next week, as preparations are currently being made for this, including an invitation to an international media to attend a press conference in this regard.

The Kingdom of Saudi Arabia is witnessing a series of economic reforms after the launch of the Kingdom’s Vision 2030, whereby the expatriate will be allowed freedom of exit and return, and even final exit and recruitment without being bound by the consent of the employer or employer, and he will also be free to move according to what the work contract stipulates.

This was supposed to be announced during the first quarter of this year, but the repercussions of the Corona pandemic caused the delay.

The final abolition of the sponsorship system in the Kingdom comes as a next step to the entry into force of the “privileged residence” system last May, after it was approved by the Council of Ministers and approved by the Saudi Shura Council in order to “advance the economy and commercial activity for expansion and transparency.” For relatives and aims to attract capital owners.

This initiative aims to improve the contractual relationship between the expatriate worker and the employer through the amendment of labor regulations and systems to allow job mobility for expatriates and improve the mechanisms of exit, return and final exit, which will contribute to raising the attractiveness of the labor market and raising its competitiveness, and enhancing its attractiveness for highly skilled expatriate workers.

The initiative contributes to improving working conditions for expatriates by raising the satisfaction of expatriates, preserving workers’ rights, increasing their productivity in the labor market, and increasing the Kingdom’s competitiveness to attract global talent.

source: saudigazette