Saudi Arabia's new employment law went into effect on Sunday which will abolish sponsorship (Kafala) system. There are currently at least 8.44 million foreigners working in the country who will directly benefit from the new law. According to media reports, after the implementation of the new law, various facilities will be provided to foreigners working in Saudi Arabia, including re-employment and option to change.
Saudi Arabia abolished 'kafala' system sets out conditions for a foreign worker to work from one company to another
A foreign worker is entitled to work from the first employer to another employer provided the new employer is willing to hire. The foreign worker is entitled to employment with another employer upon termination of the certified employment contract without the approval of the current employer.
The new employment system has three points and four main objectives
This new law includes protecting the rights of employers and employees, creating a flexible environment in the labor market, making the labor market more attractive and emphasizing the importance of employment contracts in employer-employee relations. The workforce is developing new rules and regulations in response to changes in the labor market. This includes protecting workers, ratifying employment contracts and promoting occupational health and safety. This is a step towards modernizing the labor market.