Surreal illustration of workers overshadowed by a corporation in Riyadh, symbolizing labor injustice in Saudi Arabia.

Unfair Labor? How Saudi Arabia's System Fails Foreign Workers

Avery Sinclair in Law & Justice August 2025 • 4 min read.

"A critical look at Saudi Arabia's labor dispute resolution process and its impact on low-skilled temporary foreign workers, revealing systemic issues and potential reforms."

Saudi Arabia's rapid economic growth since the 1970s has led to significant developments in its legal system, including labor laws aimed at protecting workers' rights. However, the reality for many low-skilled temporary foreign workers (TFWs) is often far from ideal. These workers, vital to the Saudi economy, frequently find themselves caught in a system that struggles to address their unique vulnerabilities.

The Saudi labor system operates without a dedicated labor court. Instead, labor disputes are typically handled by quasi-judicial committees. These committees, while intended to provide a mechanism for resolving conflicts, face criticisms regarding their independence and effectiveness. The interplay of modernist and traditionalist influences within the Saudi legal framework further complicates the situation.

This article critically examines the existing labor dispute resolution process in Saudi Arabia, focusing on its impact on the rights of TFWs. It explores the structure and function of the quasi-judicial committees, the challenges arising from the absence of a labor court, and the influence of traditionalist legal interpretations. Ultimately, it proposes potential reforms to create a fairer and more effective system for all workers.

The Kafala System and Worker Vulnerabilities: What is the Impact?

Surreal illustration of workers overshadowed by a corporation in Riyadh, symbolizing labor injustice in Saudi Arabia.

A significant factor impacting TFWs is the 'Kafala' system, which ties a worker's legal residency to their employer. This system, while intended to manage temporary labor, can create opportunities for exploitation. For example, employers may confiscate passports, a practice that, while illegal, restricts a worker's freedom of movement and ability to change jobs.

Another issue is the phenomenon of 'huroob' workers – those who run away from their employers. This can occur due to poor working conditions, unpaid wages, or other forms of abuse. Under the Kafala system, these workers become undocumented and vulnerable to arrest and deportation, further discouraging them from seeking legal recourse.

Passport Confiscation: Employers illegally seize workers' passports, restricting their movement.
'Huroob' Status: Workers fleeing abuse become undocumented and face deportation.
Limited Legal Recourse: Fear of losing legal status prevents workers from reporting abuses.

The absence of a specialized labor court contributes to these problems. The quasi-judicial committees, often staffed by individuals without specific legal training, may struggle to navigate the complexities of labor law and the nuances of individual cases. Traditionalist interpretations of the law can also create biases against foreign workers, further undermining their ability to obtain justice.

Towards a Fairer System: What Reforms are Needed?

Reforming Saudi Arabia's labor dispute resolution process is essential to ensure fair treatment and protect the rights of all workers, especially vulnerable TFWs. This requires addressing systemic issues, including the power imbalances created by the Kafala system and the limitations of the current quasi-judicial committees. Unifying the legislative body and establishing specialized labor courts under the Ministry of Justice would be significant steps towards creating a more transparent, equitable, and effective labor system in Saudi Arabia. Additionally, laws must be amended to cover issues related to residency regulations that interrelate with employment contracts, such as renewing work and residency permits and reporting runaway worker cases. These combined reforms ensure that all workers, irrespective of their origin, can access justice and have their rights safeguarded.

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Everything You Need To Know

What are the main challenges faced by low-skilled temporary foreign workers in Saudi Arabia's labor system?

Low-skilled temporary foreign workers often encounter issues related to the 'Kafala' system, which ties their legal residency to their employer, creating opportunities for exploitation, such as passport confiscation and restricted mobility. Additionally, they face challenges with 'huroob' status if they flee abusive employment conditions, making them undocumented and subject to deportation. The absence of dedicated labor courts further complicates their ability to seek legal recourse, as quasi-judicial committees may lack the necessary legal expertise, and traditionalist legal interpretations may create biases against them.

How does the absence of a dedicated labor court impact the resolution of labor disputes involving temporary foreign workers in Saudi Arabia?

The absence of a dedicated labor court means that labor disputes are typically handled by quasi-judicial committees. These committees are often criticized for lacking independence and specific legal training, making it difficult for them to navigate the complexities of labor law and the nuances of individual cases involving temporary foreign workers. This can lead to inconsistent and potentially unfair outcomes, as well as the influence of traditionalist legal interpretations that may disadvantage foreign workers.

What is the 'Kafala' system, and how does it contribute to the vulnerability of temporary foreign workers?

The 'Kafala' system is a labor sponsorship system that ties a temporary foreign worker's legal residency to their employer. While intended to manage temporary labor, it often creates power imbalances that can lead to exploitation. For instance, employers may confiscate workers' passports, restricting their freedom of movement and ability to change jobs. The system also discourages workers from reporting abuses for fear of losing their legal status and facing deportation, rendering them more vulnerable to exploitation.

What reforms are needed to create a fairer and more effective labor system for temporary foreign workers in Saudi Arabia?

To create a fairer system, several reforms are necessary. Addressing the power imbalances created by the 'Kafala' system is critical, as is improving the effectiveness of the current quasi-judicial committees. Establishing specialized labor courts under the Ministry of Justice would promote transparency and equity. Additionally, laws must be amended to address residency regulations related to employment contracts, such as work permit renewals and the handling of 'huroob' (runaway worker) cases. These combined reforms would help ensure access to justice and safeguard the rights of all workers, regardless of origin.

What is 'huroob' status, and how does it affect temporary foreign workers in Saudi Arabia?

'Huroob' status refers to the situation where temporary foreign workers run away from their employers, often due to poor working conditions, unpaid wages, or other forms of abuse. Under the 'Kafala' system, these workers become undocumented and vulnerable to arrest and deportation. This status also discourages them from seeking legal recourse against their employers for fear of being caught and deported, further exacerbating their vulnerable position and making it more difficult to address labor rights violations.