Scrapping several restrictions previously imposed on migrant workers, on March 14 Saudi Arabia introduced the Labor Reform Initiative (LRI), a new labor law that provides migrant workers in the private sector with improved job mobility. Meanwhile, Equidem, a labour rights charity organization working globally, has called upon the Kingdom to address the systematic discrimination that leaves millions at risk of modern slavery.
An estimated 10 million migrant workers including 400,000 Nepalese are expected to benefit from the LRI, an initiative that is hoped will nurture a fair working environment. Announced in November last year, the LRI came into effect on March 14 and eliminates the restrictions imposed on migrant workers in private-sector jobs in areas such as construction, hospitality, oil and gas, and infrastructure.
In addition to seeking permission from their employers to change jobs, open a bank account, or travel outside the country, migrant workers have previously been required to be sponsored by an employer to work in Saudi Arabia.
While the newly introduced labor law, which aims to improve the contractual relationship between employers and employees in the private sector, is described as a major shift in the Saudi labor market, labor rights advocates warn that the law will fail to address the misery that the pandemic has caused for migrant workers.
✅ Allow all categories of workers to exercise their rights to freely change their employer and leave the country as and when they wish to. 11/18
— Equidem.org (@EquidemOrg) March 14, 2021
In a statement issued on March 14, Equidem called on the Saudi Arabian government to allow all categories of workers to exercise their rights, to remove the crime of absconding from Saudi law, to put in place protection against retaliation from employers, and to end the racial discrimination suffered by migrant workers by providing employment, health, and other protection and benefits to every man, woman, and children.
It also urged the Saudi government to ensure all migrant workers are paid the wages and other benefits owed to them, to increase efforts to raise workers’ awareness of their rights, to recognize migrant workers’ right to join and form a trade union, and to provide long-term migrant workers with a path to seek permanent residency and citizenship if they so choose.
- According to Equidem, Saudi Arabia hosts the third-largest migrant population in the world; foreign workers account for about a third of Saudi Arabia’s 30 million population and more than 80% of the Kingdom’s private-sector workforce
- The labour reforms in Saudi Arabia do not apply to nearly 4 million women and men who work as domestic workers, farmers, gardeners, drivers, and security guards
- When the pandemic hit last year, the Saudi government introduced a US$2.4 billion furlough scheme and allocated US$1.4 billion in human resource funds for Saudi nationals but unfortunately none of those measures extended to migrant workers thereby establishing a discriminatory system
Stating that the new labor law of Saudi Arabia does not adequately protect or improve conditions for migrant workers in the Kingdom, Equidem commented, “The new law does not address the systematic discrimination, weak enforcement, and prohibition on migrant workers joining or forming a union that currently leaves millions at risk of modern slavery.”
Underlining that the passage of laws alone will not improve conditions for migrant workers, Mustafa Qadri, Executive Director at Equidem, said, “Saudi Arabia has historically allowed conditions to flourish that lead to the abuse, exploitation, and dehumanization of migrant workers. The pandemic has rapidly worsened conditions for workers, but these new laws simply do not address the root of the problem. We have heard from workers about what they’re experiencing, and we know what needs to be done to enact real change.” The hope was that Saudi Arabia would choose to instigate some action behind its rhetoric and show the world it was serious about improving conditions for migrant workers, he added.
When asked how these reforms would benefit Nepalese migrant workers, Rameshwar Nepal, South Asia Director at Equidem, responded, “Though it is encouraging to see Saudi Arabia realizing a need of labour reform, the recent reform, however, falls inadequate to protect millions of migrant workers from exploitation and forced labour. Migrant workers still need the permission of the Saudi government to change employer or exit from the country.”
Highlighting that these reforms would have little impact on the rights and livelihoods of millions of workers in Saudi Arabia, Qadri recommended, “Saudi authorities still have a long way to go. For these reforms to be effective they must be applied to all workers, across all sectors and visa categories, and adequately enforced.”
