New Labor Reforms in Saudi, Changes in Kafala (Sponsorship)

Saudi Arabian Government has been trying to improve employee and employer relationship and have been trying multiple initiatives that will build this vision.

Ministry of Human Resources and Social Development (MHR & SD) has announced the New labor reform initiative will come into force on from this Sunday (March 14).

New Labor Reforms in Saudi, Changes in Kafala (Sponsorship)

New Labor Reforms in KSA from 14th March, Abolishment of Kafala System for Private Sector Expatriates to improve Employer and Employee relationship in Saudi Arabia

This move will help improve the relation between employer and employee in private sector which will change the old sponsorship system (Kafala) system

This will help the expat employee to move freely between jobs without the consent of sponsor (Kafeel) and regulates the issuance of exit and re-entry visas and final exit visas without the consent of the employer.

All these services for Expats will be available on Absher & Qiwa portals online. This is applicable for any expat who is working in private sector except domestic worker, private driver, farmer, shepherd & Home guard.

The employment mobility for an expat worker through the transfer of service to another job upon the expiry of his work contract without the need for the employer’s consent.

The initiative aims to raise the competitiveness of the labor market and is expected to produce a positive economic impact in terms of the flexibility and development of the labor market, and contribute to achieving the goals of the Kingdom’s Vision 2030 in developing human competencies and work environment.