Definition
The kafala system is a framework for regulating the relationship between migrant workers and their employers in several Middle Eastern countries, including the Gulf Cooperation Council states. Under the kafala model, a foreign worker’s legal residency and employment status are tied to an individual sponsor (kafeel), who is typically the employer or a licensed manpower agency. The sponsor assumes legal and economic responsibility for the worker during the period of the employment contract.
How the System Operated
Under the kafala system, workers were required to obtain their sponsor’s consent to change employment, leave the country, or in some cases renew their residency permit. This structural dependency created significant power asymmetries between employers and workers. Critics identified the system as a root cause of labour abuses, including passport confiscation, wage theft, excessive working hours, and restrictions on freedom of movement.
The kafala system was not codified in a single law but rather embedded across immigration, labour, and residency regulations. It operated as the de facto governance framework for the approximately two million migrant workers who make up the majority of Qatar’s labour force.
Qatar’s Reforms
Between 2020 and 2021, Qatar enacted a series of legislative changes that effectively dismantled the kafala system and replaced it with a contract-based employment framework. Key reforms included the removal of the requirement for employer consent to change jobs (the No Objection Certificate), the elimination of exit permit requirements, and the introduction of a non-discriminatory minimum wage.
These reforms were developed in partnership with the International Labour Organisation, which maintained a technical cooperation programme in Qatar. The changes were widely regarded as the most comprehensive labour reforms in the GCC region, though monitoring organisations have noted that implementation and enforcement remain ongoing challenges.
Significance
The kafala system and its reform are central to Qatar’s international reputation, its labour market governance, and its alignment with the social development objectives of the National Vision 2030. The transition from sponsorship-based to contract-based employment represents a structural shift in the relationship between the state, employers, and migrant workers.