Saudi Arabia is planning to cancel foreign worker sponsorship system, known as kafala. The country will replace it with a new contract form between employers and employees.
Quoting Maaal, the Arabic language online economic newspaper, the report said that the kafala system that generally binds an expatriate worker to one employer had been in place for seven decades in the kingdom.
According to a report, Rights groups criticize the system and stated it leaves workers vulnerable to exploitation. But, Saudi media had said the abrogation of the sponsorship law would lead to limiting the relationship between the employer and the expatriate worker to the employment contract that defines the rights and duties of both the parties.
A report stated the end to the kafala system is also aimed at promoting economic growth and expanding commercial activities
In February, a Saudi Gazette report stated that the decision to end the sponsorship system was part of economic reforms that Riyadh is witnessing after the launch of Vision 2030 by Crown Prince Mohammed bin Salman, also known as MBS.
Under the plan, the abolition of the sponsorship system will give expatriate workers freedom to secure their exit and re-entry visas while also getting their final exit stamped on their own as well as taking up employment without any restriction or approval of the employer.
The expatriate workers will have full freedom of movement as to what is stipulated in the employment contract.