The sponsorship system—historically known as Kafala—is the legal framework governing expatriate employment across GCC countries. While often misunderstood, this system has undergone significant reforms in recent years, dramatically improving worker mobility and protections. Understanding how sponsorship works is essential for every expatriate planning to work in the Gulf.

Table of Contents

  • What is the Kafala System?
  • Country-by-Country Current Status
  • Recent Reforms and Labor Mobility
  • Process for Switching Employers
  • Employee Rights and Protections
  • Frequently Asked Questions

What is the Kafala System?

Historical Background

The Kafala (sponsorship) system originated in the 1950s as Gulf countries developed their oil industries and needed foreign workers. Key characteristics included:

  • Employer sponsorship: Work visas tied to a specific employer
  • Exit permits: Employer permission required to leave the country
  • No Objection Certificate (NOC): Employer approval needed to change jobs
  • Employer control: Significant power imbalance favoring sponsors

Modern Evolution

Over the past decade, international pressure and domestic reform initiatives have transformed the system. Most controversial elements have been eliminated or substantially reformed across major GCC countries.

Country-by-Country Current Status

United Arab Emirates

Current Framework (2025)

  • Exit permits: Abolished—employees can leave freely
  • Job mobility: Workers can change jobs after contract completion or during notice period
  • No NOC requirement: Can change employers without current employer approval
  • New visa categories: Green Visa allows self-sponsorship for skilled professionals
  • Golden Visa: 5-10 year visas for investors, entrepreneurs, and skilled workers

Key 2022 Labour Law Changes

Federal Decree-Law No. 33 of 2021 introduced:

  • Flexible work arrangements and part-time contracts
  • Prohibition of discrimination based on race, color, sex, religion, or disability
  • Protection against workplace harassment
  • Enhanced maternity and paternity leave

Saudi Arabia

Current Framework (2025)

  • Exit/re-entry: No longer requires employer approval (since March 2021)
  • Job mobility: Employees can transfer to new employer after contract completion or with notice
  • Premium residency: Available for high-skilled professionals independent of employer
  • Grace period: 90 days to find new employment after contract ends

Labor Reforms Initiative

Saudi Arabia's reforms allow workers to:

  • Leave and re-enter the country without employer approval
  • Transfer to new employer upon contract expiry
  • Apply for exit visa independently
  • Access dispute resolution through digital platforms

Qatar

Current Framework (2025)

  • NOC abolished: Workers can change jobs without employer permission (since 2020)
  • Exit permits abolished: Free movement to leave the country
  • Minimum wage: QAR 1,000 basic + QAR 500 allowances (first in GCC)
  • Enhanced labor courts: Faster dispute resolution

Post-World Cup Legacy

Reforms enacted for the 2022 World Cup remain permanent, including:

  • Enhanced worker welfare standards
  • Improved accommodation requirements
  • Regular labor inspections
  • Digital wage protection systems

Recent Reforms and Labor Mobility

Key Reforms Timeline

YearCountryReform
2020QatarNOC requirement abolished
2021Saudi ArabiaExit permit requirement abolished
2022UAENew Labour Law with enhanced protections
2022QatarMinimum wage introduced
2023UAEEnhanced unemployment insurance scheme
2024Saudi ArabiaDigital labor mobility platform launched

Impact on Workers

These reforms have significantly improved the expatriate experience:

  • Increased bargaining power: Ability to leave improves negotiating position
  • Market-rate salaries: Competition for workers raises compensation
  • Better treatment: Employers more motivated to retain talent
  • Career flexibility: Ability to pursue better opportunities

Process for Switching Employers

UAE Process

  1. Secure new job offer from prospective employer
  2. Submit resignation with proper notice period (typically 30-90 days)
  3. Serve notice period or negotiate early release
  4. New employer initiates visa transfer through MOHRE system
  5. Complete medical and Emirates ID updates
  6. Begin new employment

Timeline:

Total process typically takes 2-4 weeks once resignation is accepted.

Saudi Arabia Process

  1. Complete contract term or serve notice period
  2. Register on Qiwa platform for job mobility
  3. New employer submits transfer request
  4. Transfer approved within 15 days if requirements met
  5. Work permit issued to new employer

Requirements:

  • Valid Iqama (residency permit)
  • No outstanding disputes with current employer
  • New employer has valid commercial registration

Qatar Process

  1. Submit resignation with proper notice
  2. Complete notice period (as per contract, max 2 months)
  3. New employer applies for work permit
  4. Ministry of Labour approves transfer
  5. New visa issued

Employee Rights and Protections

Universal Protections Across GCC

  • Passport retention is illegal: Employers cannot hold employee passports
  • Wage Protection Systems: Salaries must be paid through banking channels
  • Contract enforcement: Signed contracts are legally binding
  • Labor court access: Free legal recourse for workers
  • End-of-service gratuity: Mandatory severance regardless of resignation/termination

Dispute Resolution

Step 1: Internal Resolution

Attempt to resolve disputes directly with employer HR.

Step 2: Ministry Complaint

File complaint with Ministry of Labour (MOHRE in UAE, HRSD in KSA, MOL in Qatar).

Step 3: Mediation

Ministry attempts to mediate resolution between parties.

Step 4: Labor Court

Unresolved disputes escalate to labor courts for binding judgment.

Protection Against Abuse

If you experience abuse or exploitation:

  • Document everything: Keep records of contracts, pay slips, communications
  • Contact your embassy: Consular services can provide guidance
  • Report to labor authorities: File formal complaints online or in person
  • Seek legal advice: Many jurisdictions offer free legal aid for workers

Frequently Asked Questions

1. Can my employer prevent me from changing jobs?

In all three major GCC countries, employers can no longer legally prevent job changes. You may need to serve a notice period or complete your contract term, but no NOC or permission is required.

2. What happens if I leave my job without completing my notice period?

You may forfeit some end-of-service benefits and could face a labor ban (typically 6-12 months) in some cases. It's better to negotiate an early release if urgent.

3. Can I get a new job while still employed?

Yes, you can interview and receive offers while employed. However, you should not work for the new employer until your visa transfer is complete.

4. What is a labor ban and how do I avoid one?

A labor ban (temporary prohibition from new employment) can result from contract violations. Leaving before completing a probation period, absconding, or leaving without notice can trigger bans. Following proper resignation procedures avoids this.

5. What if my employer refuses to process my resignation?

Document your resignation in writing and deliver it formally. If the employer doesn't respond, you can file a complaint with the Ministry of Labour, who will intervene to process your resignation.

6. Can I sponsor my family independently of my employer?

With certain visa types (Golden Visa, Green Visa, Premium Residency), yes. Standard work visas still require meeting salary thresholds set by authorities (typically $2,000-4,000/month).

Conclusion

The Kafala system has evolved dramatically from its original form. Today's sponsorship framework in the UAE, Saudi Arabia, and Qatar provides significantly more protection and mobility for workers than in the past. While the employment visa remains tied to an employer, the ability to change jobs, leave the country freely, and access dispute resolution has fundamentally improved the expatriate experience.

Understanding these rights empowers us to make informed career decisions, negotiate better terms, and protect ourselves during our Gulf employment. As reforms continue, the region moves closer to international labor standards while maintaining the structured immigration framework that serves both employers and employees.