In a historic labour reform, Saudi Arabia has formally abolished the Kafala (sponsorship) system that governed foreign employment for more than seven decades.

The move marks a major shift in labour rights for over 13 million migrant workers in the Kingdom, including nearly 2.65 million Indians.

The announcement, described by Indian diplomats as a welcome Diwali gift for the Indian community, dismantles a legal framework that had long tied workers’ residency and employment status to a single employer, or kafeel . Under the old system, workers required employer permission to change jobs, leave the country, or file legal complaints — a structure widely criticised by international rights groups as exploitative.

According to the Saudi Ministry of Human Resources, the Kafala system is being

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