The kafala system (also spelled "kefala system", Arabic: نظام الكفالة niẓām al-kafāla, meaning "sponsorship system") is a system used to monitor migrant laborers, working primarily in the construction and domestic sectors, in Lebanon, Bahrain, Iraq, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. The system requires all unskilled laborers to have an in-country sponsor, usually their employer, who is responsible for their visa and legal status. This practice has been criticised by human rights organizations for creating easy opportunities for the exploitation of workers, as many employers take away passports and abuse their workers with little chance of legal repercussions.
According to The Economist, "The migrant workers’ lot is unlikely to improve until the reform of the kafala system, whereby workers are beholden to the employers who sponsored their visas. The system blocks domestic competition for overseas workers in the Gulf countries." Although, The Economist has also noted the positive economic impacts the Gulf system has had upon foreign workers and their families and home communities.
In 2009, Bahrain was the first country in the Gulf Cooperation Council (GCC) to claim to repeal the kafala system. In a public statement the Labor Minister likened the system to slavery. Changes to the Labour Market Regulatory Suggestion were made in April 2009 and implemented starting 1 August 2009. Under the new law, migrants are sponsored by the Labour Market Regulation Authority and can change from one employer to another without their employer's agreement. Three months' notice is required to quit from an employer.
However, in November 2009 Human Rights Watch (HRW) stated that "authorities do little to enforce compliance" with "employers who withhold wages and passports from migrant employees accountable, ... practices [which] are illegal under Bahraini law."