Saudi Arabia’s labor reforms to ‘kafala’ sponsorship system comes into effect Sunday

Saudi Arabia’s labor reforms to ‘kafala’ sponsorship system comes into effect Sunday

Saudi Arabia's promised reforms to improve on its "kafala“ sponsorship system announced last November officially comes into effect on Sunday, which will see expatriate workers enjoy job mobility and freedom to enter and exit the Kingdom without the need for an employer's permission.

Saudi Arabia's Ministry of Human Resources and Social Development last November announced it would implement starting March 2021 new conditions under which expatriate workers in the Kingdom can benefit from with the aim of improving the kafala sponsorship system in the Kingdom.

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The new conditions include stipulations that will allow migrant workers to transfer to other jobs upon the expiry of their work contract without the need for their former employer's approval.

The newly reformed laws pertaining to foreign labor workers also include transition mechanisms during the validity of the contract, provided that the notice period and the specified controls are adhered to. It also provides an exit and return service, which allows a migrant worker to travel outside Saudi Arabia, upon submitting the application, with an online notification to the employer without the need to seek prior permission.

A 'final exit' stipulation will also enable a