That is a major, impactful news story. The core news is that Saudi Arabia has officially abolished its decades-old Kafala (Sponsorship) system, a move that grants significant new rights and freedoms to over 13 million migrant workers, including millions of Indians.
Here is a full breakdown of the Kafala system's end and the changes it brings:
🇸🇦 Saudi Arabia Abolishes Kafala System: Full News Details
The move, announced in June 2025 and officially implemented, is considered one of the most significant labor reforms in the Gulf's recent history, moving the Kingdom towards a more contract-based employment model.
1. What Was the Kafala System?
Meaning: 'Kafala' is an Arabic word meaning "sponsorship".
The Structure: Introduced in the 1950s, this system legally tied every migrant worker's visa, residency, and employment status to a local sponsor, known as the 'Kafeel' (usually the employer).
The Control: The system granted the employer near-total control over the worker's life.
Under Kafala, a worker could not: Change jobs without the employer's consent.
Leave the country without an 'Exit Visa' or the sponsor's approval.
Seek legal help or report abuse without facing the risk of arrest or deportation.
Criticism: Human rights groups and international bodies like the International Labour Organization (ILO) have long condemned the Kafala system, frequently comparing it to "modern-day slavery" because it enabled widespread abuse, passport confiscation, and wage withholding.
The Major Reforms: What Has Changed?
The new labor framework replaces the restrictive sponsorship model with a contract-based system.
9 This brings fundamental new rights to migrant workers in Saudi Arabia:Previous Kafala Rule New Contract-Based Rule Job Change: Required sponsor's (Kafeel's) explicit approval. Job Change: Workers can freely switch employers after completing their contract or providing due notice, without needing the original employer's consent. Travel: Required an Exit/Re-Entry Visa and sponsor's permission to leave or re-enter the country. Travel: Workers can travel abroad and return freely without needing the sponsor's consent or an Exit Visa. Legal Status: Tied directly to the sponsor, limiting legal recourse. Legal Status: Workers gain expanded access to labor courts and grievance mechanisms to report abuse and seek justice. Contracts: Often informal with potential for exploitation. Contracts: Employment will be governed by formal, monitored contracts (often via the digital Qiwa platform).