Saudi Arabia: end of the kafala system, a historic turning point for the rights of foreign workers.

The Kingdom is ending a decades-old sponsorship model and adopting a contractual system as part of its Vision 2030.

A historic step towards labor reform
Riyadh — Saudi Arabia has officially abolished the system of kafalathis sponsorship system established in the 1950s which governed the relationship between employers and migrant workers. Announced in June 2025, the reform has now entered into force. It aims to strengthen the rights of workers and improve their living and employment conditions throughout the Kingdom.

What was the kafala system?
The system of kafala tied every foreign worker to a Saudi employer, prohibiting them from changing jobs or leaving the country without permission. Long denounced by human rights organizations and the International Labor Organization (ILO), this system has been accused of encouraging abuse, the confiscation of passports and, in some cases, forced labor, particularly among domestic employees and low-skilled workers.

The main new features of the reform
The Kingdom has replaced the sponsorship model with a more flexible contractual framework. Foreign workers can now:

• change employer without prior authorization;
• leave the territory without an exit visa;
• go directly to the labor courts to assert their rights.

A pillar of Vision 2030
This reform is part of the broad strategy Vision 2030 led by Crown Prince Mohammed bin Salman, which aims to modernize the Saudi economy and attract more foreign talent. While this decision was hailed as a major step forward, observers emphasize that its success will depend on its effective implementation and strict monitoring of employers in order to guarantee real protection for migrant workers. A historic reform, but whose real impact will be measured in respect for rights on the ground.