THE kafala or sponsorship system has been in place throughout the Gulf Cooperation Council (GCC) countries for decades. The system, which requires all expatriate workers to have a local sponsor, has often been criticized for giving sponsors too much power and doing little to protect the rights of expatriate workers. In recent years, many GCC countries have voiced their desire to do away with the sponsorship system and place all foreigners under the care of the government, but none have followed through on their verbal commitments. In Saudi Arabia, the government has taken steps to punish those who abuse the system but critics say more needs to be done to guarantee the rights of both employers and employees. One solution has been to grant licenses to specialized recruitment companies, which then act as the sponsor and managers of hundreds and thousands of unskilled expatriate workers such as housemaids and drivers. By limiting the number of individual sponsors who directly recruit workers, the government can easily oversee the operations of recruitment companies and ensure that both citizens and foreign workers are given their due rights, Al-Riyadh daily reported. Muhammad Al-Shihri, a Saudi lawyer, said the sponsorship system was created to regulate the movement of expatriate workers in and out of the Kingdom by placing Saudi sponsors in charge of their movement. “In the eyes of the government, the Saudi sponsor is responsible for his employees and in the case any matter involving the worker arises, the sponsor is answerable to the government. Expatriate workers get a valid and paid residency permit (iqama) for a period of one year, and they have to work under their respective sponsors, be it a company, small business or individual,” he said. Al-Shihri said one of the benefits of controlling the entry and exit of workers is that it allows authorities to only hire expatriates whose skills are needed in the labor market. “Expatriates are not allowed to work independently nor in occupations reserved for Saudis and this includes practicing trade,” he added. Acknowledging that the system is susceptible to abuse, Al-Shihri said certain aspects of the sponsorship system need to be overhauled, especially the method by which disputes between sponsors and workers are resolved. “Often, when a dispute arises, sponsors abuse their authority and force workers to remain under their sponsorship by not granting them a transfer. Getting this approval is often a dispute itself and one of the main reasons why there are so many complaints against the kafala system,” he said. Al-Shihri believes whenever a dispute arises between a worker and sponsor, granting or rejecting transfer of sponsorship should be decided by a third party. In the case a verdict is issued in favor of the worker, transfer of sponsorship without the sponsor's approval should be granted. “The relationship between a sponsor and worker should be based on respect, professionalism and integrity and the worker should not betray his sponsor nor should sponsors behave in an unjust manner toward workers.” Expatriates' rights Businessman Hassan Al-Faifi said the system effectively makes workers hostage to one party by preventing them from easily changing jobs from one company to another. “Even if there aren't any disputes and the worker gets a better offer from another company, for example, changing sponsorship is a tedious and expensive process. The sponsorship system has many shortcomings. I call upon the authorities concerned to cancel it and place all expatriates under the sponsorship of the government. Citizens can recruit workers if certain conditions are met and a clear contract is drawn up. This will enable the state to recruit workers according to the needs of the labor market, will end misuse of the system and protect the interests of sponsors in the event a worker runs away,” he said. Muhammad Al-Ghamdi, a Saudi real estate investor, denied that there are any faults with the system and questioned the motives of foreign organizations and nationals of other Arab countries that criticize the system. “The system protects the interests of both parties and also organizes the labor market and the condition of workers in the Kingdom. Some workers and foreign media keep saying that workers' rights are better in Western countries than in the Kingdom. However, the reality confirms that this is untrue because if this was the case, these workers would be keen to work in those countries instead of coming to the Kingdom,” he said, while warning of the negative impact of canceling the system. “Whether the sponsor is an individual or a company or even a government authority, keeping the system intact is important. Canceling it will only harm the nation and citizens, apart from greatly increasing the Kingdom's population as this country attracts workers due to the relatively good economic standing it enjoys compared to many Third World countries. Young Saudis will suffer as jobs opportunities will diminish and the local economy will be hurt by the remittances made by expatriates,” he added.
