Additional provisions include strengthened labor courts and complaint mechanisms to protect workers from abuse and exploitation, offering legal recourse.

Saudi Arabia has abolished its 50-year-old Kafala sponsorship system, replacing it with a contract-based employment model that grants migrant workers greater mobility and legal protections.

The new reforms allow workers to transfer jobs without employer consent, exit the country freely through electronic notifications, and do not require exit visas, significantly improving workers' rights.

This overhaul impacts approximately 13 million migrant workers, predominantly from South and Southeast Asia, including many Indians, who work in sectors like construction, domestic work, and hospitality.

The reforms are particularly beneficial for women engaged in domestic work, a group that has historically faced vulnerabilities under the previous system.

The Kafala system, introduced in the 1950s, historically tied workers' legal status to their sponsors, leading to exploitation such as passport confiscation, delayed wages, and restrictions on movement, which critics have likened to modern-day slavery.

The abolition marks a significant step in addressing international criticism and reducing concerns related to forced labor and human trafficking.

Saudi Arabia's move aligns with regional trends, following reforms in Bahrain in 2009 and the UAE in 2015, and is part of broader efforts to modernize the labor market.

The reform follows similar changes in Qatar in 2022, driven by international pressure and regional standards, especially in the context of hosting the FIFA World Cup.

This labor reform aligns with Saudi Arabia's 'Vision 2030' initiative, aimed at economic diversification, reducing dependence on oil, and attracting foreign investment and skilled professionals.

The move is also intended to improve Saudi Arabia's international reputation by demonstrating a commitment to better labor practices and human rights.

Overall, the reforms are expected to benefit over one million migrant workers, enhancing their rights, independence, and the attractiveness of the Saudi labor market.