Saudi Arabia ends the Kafala system and introduces new labour rules for expatriate workers. Learn about the Saudi New Labour Reforms 2025
Saudi Arabia has announced several major labour and expatriate reforms that directly impact millions of foreign workers living in the Kingdom.
1. Kafala (Sponsorship) System Abolished
Saudi
Arabia has officially abolished the old “Kafala” sponsorship system,
marking a historic shift in labour relations.
This
reform frees more than 13 million foreign workers, including Indians,
Pakistanis, Afghans, Bangladeshis, Nepalis and other from many previous
restrictions—such as having to obtain permission from their sponsor (kafeel) to
change jobs or leave the country.
👉 The move is part of ongoing labor reforms in Saudi
Arabia aimed at ensuring better working conditions and freedom of movement for
all expatriates.
🔗 Source: Business Standard – Saudi Arabia Ends Kafala System
Saudi Ministry
of Human Resources and Social Development (MHRSD) has issued a new guide
for domestic workers (drivers, maids, nannies, etc.).
Under the
new rules, employers are strictly prohibited from charging any recruitment fee,
transfer fee or occupation change fee from domestic workers.
Any
employer found violating these regulations could face a fine of up to 20,000 Saudi
riyals and a hiring ban for up to three years. Compliance is mandatory for
all employer.
🔗 Source: Saudi Gazette – New Guide for Domestic Workers
Migrant
workers whose employment contracts expire or who leave their jobs will now be
given a 60-day grace period to
decide their next steps. This scheme will provide additional time for migrant
workers.
During this period, workers may:
✅ Transfer to a new employer,
✅ Sign a new employment contract, or
✅ Exit Saudi Arabia legally — without being automatically marked as
“absent from work.”
🔗 Source: DLA Piper – Saudi Arabia Grants Expat Workers 60 Days
4. New Employer Obligations
According
to updated Saudi Labour Law, employers are now bound by stricter
responsibilities:
✅ They
must not engage in forced labour practices.
✅ Delaying
or withholding wages is a
punishable offence.
✅ Changing
a worker’s job location without written consent is prohibited (except in specific, approved
cases).
✅ Employers
must provide either suitable accommodation or a housing allowance.
✅ These
obligations are clearly detailed in the MHRSD’s official guidelines.
🔗 Source: HRSD Official Article
📰 Summary
These reforms are part of Saudi Arabia's Vision 2030, which aims to modernize the kingdom's
labor market, improve transparency, and protect the rights of all foreign
workers.
If you are a migrant worker in Saudi Arabia, being
aware of these regulations will help you protect your rights and avoid fines or
legal problems.
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