The Human Cost Of Gulf Prosperity: Inside The Kafala System

The Author of this Blog Article is Mr. Surya Prakash Swaim, a first year law student pursuing B.A.LL. B, from National Law University, Odisha (NLUO).

Abstract

This essay delves into the tragic events of June 12, 2024, when a fire in a residential building in Mangaf, Kuwait, claimed the lives of over 50 migrant workers, mostly from India. This heartbreaking incident shines a light on the Kafala system, an exploitative framework that governs the lives of migrant laborers in the Middle East. Through poignant narratives, we

introduce the Kafala system and trace its historical roots, highlighting how it was designed to control and exploit foreign workers.

We examine the deceptive practices of recruitment agencies, which charge exorbitant fees and mislead hopeful workers. Many migrants are trapped in a cycle of debt and exploitation before they even arrive in the Gulf. Under the Kafala system, they endure harsh living conditions, excessive working hours, and restricted freedoms, with domestic workers suffering the most. These conditions violate numerous International Labour Organization (ILO) standards meant to ensure fair treatment and decent work.

The essay also explores recent reforms in countries like Qatar, Saudi Arabia, and Bahrain, acknowledging positive changes while pointing out the persistent gaps and challenges in implementation. Despite these efforts, many workers still face significant hardships and abuses.

In concluding, we propose a series of recommendations to address these issues. These include stricter regulation of recruitment practices, improved legal protections and working conditions, and better support and education for migrant workers. By humanizing the plight of these individuals and advocating for comprehensive reforms, the essay calls for a dismantling of the Kafala system, urging both host and origin countries to ensure dignity and justice for all migrant laborers.

Introduction

On June 14, 2024, a transport carrier of the Indian Air Force landed at Kerala's Cochin International Airport to deliver the remains of 45 deceased individuals to their grieving families. As poignant images of their sorrow-stricken kin filled the television screens, netizens worldwide poured in their prayers for the swift recovery of the numerous other victims currently receiving treatment at Kuwait's Al-Adan Hospital. [1]

These harrowing scenes describe the aftermath of the devastating fire that broke out in a residential building in Mangaf on June 12, 2024. [2] The building, which housed 196 male migrant workers from various Asian ethnicities, witnessed 49 Indian nationals and 3 Filipinos succumb to smoke inhalation originating from the security room and the kitchen downstairs. While state agencies suggest it to be an unfortunate accident originating due to lack of adherence to building codes, a more detailed investigation is awaited.

Within hours of the fatal fire that claimed the lives of more than 50 migrant workers, a flurry of immediate actions were undertaken. Firstly, Kuwait's Interior Minister blamed the fatalities on the negligent and avaricious conduct of the employer and the building owner, announcing that the company officials would be held criminally liable. Subsequently, the Kuwait government pledged $15,000 to the families of the deceased [3] and poured in their heartfelt condolences. While such prompt responses by the state might appear corrective, conscious and contrite, these promises in the wake of the fire demand scrutiny as they reduce the victims to mere statistics—numbers that can be replaced by new recruits, numbers that can be forgotten by disbursing money, and numbers whose loss is disrespected by labeling

the fire as merely an unforeseen and unfortunate accident.

To humanize these numbers means acknowledging their existence as more than replaceable cheap labor. To humanize these numbers means recognizing that this incident was not just another unfortunate and unforeseen fire. To humanize these numbers means dismantling the pervasive system of modern slavery that thrives in the Middle Eastern states—the Kafala system.

Understanding Kafala: A System of Control And Exploitation

The Kafala system is a framework of labor sponsorship that operates predominantly in Middle Eastern countries such as Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates. It significantly influences the lives of millions of workers who migrate to the Gulf every year as construction workers, domestic helpers, and cleaning staff. The system expanded in the 1950s as newly oil-rich Gulf countries sought foreign laborers for large-scale infrastructure

projects. Given their relatively small populations, they needed temporary workers who could come during periods of economic boom and leave when the economy slowed. Protecting local firms is a priority in Gulf countries, where expatriates often form the majority of the population. This gave rise to the Kafala system, where the state grants local individuals or companies sponsorship permits to employ foreign laborers from countries such as India, Pakistan, Nepal, Bangladesh, and the Philippines. [4]

In practice, the Kafala system ties a worker's legal status and residency directly to their employer. This means that workers cannot change jobs or leave the country without their sponsor's permission, effectively rendering them dependent on their employers for their freedom and well-being. This dependency creates a significant imbalance of power, which is easily exploited. Employers can threaten deportation or job termination to suppress complaints or demands for better working conditions. In most situations, workers need their sponsor’s permission to transfer jobs, end employment, and enter or exit the host country. Workers have little recourse in the face of exploitation, and many experts argue that the system facilitates modern slavery.

The Indian workforce constitutes a significant portion of migrant labor in the Gulf region, with over 3 million Indians working as healthcare and construction workers across the Gulf Cooperation Council countries such as Saudi Arabia, the UAE, Qatar, and Kuwait. India also receives substantial remittances amounting to over $40 billion annually, making it the largest recipient of remittances from Kafala countries. These financial inflows play a crucial role in supporting families and bolstering India's economy, particularly in states such as Bihar, Odisha, and Kerala, where local unemployment is very high. At the same time, these workers walk a tightrope between financial benefits and labor exploitation. [5]

Understanding the Kafala system requires a multidimensional analysis. While it has facilitated rapid economic growth in the Gulf region, it has also institutionalized a form of labor control that dehumanizes workers and treats them as second-class citizens. Efforts to reform or abolish the Kafala system face significant resistance from local businesses

benefiting from cheap labor and political structures keen to maintain the status quo. This essay will explore the various facets of the lives of migrant workers trapped in the Kafala system and suggest corrective actions to pull them out of misery.

Recruitment Practices And Migrant Vulnerability

The Middle East is one of the most competitive labor markets globally, with a labor supply far exceeding demand, regulating labor recruitment becomes extremely difficult. Recruitment agencies play a crucial role in this competitive market, bridging the gap between employers and prospective migrants. However, their services come at a cost, with many accounts of agencies exploiting the very migrants they are supposed to assist, highlighting the need for a more critical examination of these practices.

"When one deceives a man in need, it is a crime not only against the man but against

humanity itself."

Fyodor Dostoevsky, "Crime and Punishment".

These recruitment agencies oversee one of the most critical junctures in the labor migration process: the stage where the terms and conditions of the contract are discussed. This is where power asymmetries between the actors can either lead to mutually beneficial relationships or to exploitation. Fee irregularities are at the center of most recruitment issues. These agencies are notorious for charging exorbitantly high placement fees, even when origin countries mandate a minimum amount. For example, in Bangladesh, the cost for recruiting a low- skilled male laborer is 84,000 BDT, approximately 1,024 dollars. However, field interviews suggest that the average amount workers pay to intermediaries is around 200,000 BDT, or 2,445 dollars. [6]

Many times to cover recruitment and processing fees, migrants either take out large loans with very high interest rates or agree to a salary deduction scheme, where their first three to five month's salary is withheld as payment. Upon arrival, another major issue migrant workers face is the underpayment or non-payment of wages. For instance, domestic workers from Sri Lanka sign contracts promising a monthly wage of USD 200 but typically receive only USD 125 to USD 150. Additionally, there have been numerous instances where workers were forced to resign contracts at rates 8-10% lower than originally agreed.

In the Middle East, there are cases where migrants must repay the expenses incurred by the recruitment agency if they wish to back out of their contract. This practice of demanding repayment of deployment costs makes migrants vulnerable to exploitation, as deployment costs, unlike placement fees, are unregulated.

Examining the kafala system through the lens of ILO standards

Established in 1919, the International Labor Organization (ILO), is a United Nations agency dedicated to promoting social justice and internationally recognized human and labor rights. The ILO formulates international labor standards through conventions and recommendations, these conventions are designed to ensure decent work conditions and equitable treatment for workers worldwide. However, the Kafala system, starkly contrasts with many of these

international labor standards. This section of the essay will explore how the Kafala system infringes upon numerous ILO conventions and undermines the rights and protections that the ILO seeks to uphold for all workers.

Under the kafala system, workers are treated as dispensable by the state. Upon their arrival, their rights and liberties are effectively nullified, with their legal, residential, and financial statuses heavily controlled by their sponsors and employers. Workers are often crammed into substandard living conditions, subjected to inhumane working hours beyond their scheduled shifts, and stripped of their right to unionize and collectively resist the oppressive system that perpetuates their suffering and vulnerability.

The workers are so stripped of their Right to Choice that even fleeing exploitation is considered a crime. The situation is even more harrowing for female domestic workers. These women often have limited or no access to phones and face severe restrictions on their movements, including being locked inside their places of employment or constantly

monitored by cameras. Many are subjected to abuse and mistreatment by their employers. When they attempt to physically escape, they are frequently arrested by police and face deportation or repatriation.

Workers are often promised high-quality housing and food services, but upon arrival in the Gulf, they frequently find themselves in overcrowded, unsafe, and unhygienic living conditions. Despite their desire to improve their situation or bring their families, restrictive laws make this nearly impossible. In Kuwait, employers must provide housing or an

allowance, 25% of wages for minimum wage earners (KD 75) and 15% for others. However, the cost of decent living is around KD 200 per person, excluding rent. This discrepancy, combined with the requirement of a KD 800 salary to sponsor a family, ensures workers remain economically vulnerable and dependent on their employers for basic necessities, perpetuating their exploitation under the kafala system. [7]

During the pandemic, migrant workers faced severe hardships across various countries. In the UAE, wage theft led to defaults on loan repayments, resulting in arrests. In Qatar, some migrants could not be deported before receiving their due wages. Lockdowns exacerbated social isolation and heightened the vulnerability of domestic workers, complicating their ability to send remittances. In Lebanon, some domestic workers were abandoned outside their

consulates as employers claimed they could no longer afford to pay them. [8]

From studying the above paragraphs, it is clear that numerous International Labour Organization (ILO) conventions are violated under the kafala system. Workers face substandard living conditions, inhumane working hours, and are denied the right to unionize, violating the right to decent work (Convention 87) and freedom of association (Convention 98). Female domestic workers endure severe mobility restrictions, abuse, and exploitation, breaching conventions on discrimination (Convention 111) and domestic worker's rights (Convention 189). During the pandemic, wage theft, physical abuse, and social isolation further violated worker's rights to fair remuneration and safe working conditions

(Conventions 95 and 155).

The State Of Reform

Over the past decade, countries maintaining the kafala system have come under intense scrutiny due to widespread abuses against migrant workers. High-profile events like the Qatar 2022 FIFA World Cup and Dubai World Expo 2020 have drawn global attention to these issues. Some nations have introduced reforms, often in response to growing international pressure, but complete abolition of the kafala system remains elusive, as remnants of this system continue to hinder progress.

Qatar, for instance, entered into a technical cooperation program with the ILO to bring its laws and practices in line with international labor standards. Encouragingly, in 2020, Qatar eliminated exit permit requirements for certain workers excluded from labor law coverage and also did away with the need for No-Objection Certificates (NOCs), allowing job changes under specific conditions without employer consent. [9]

Similarly, Saudi Arabia's 2021 Labour Reform Initiative permits workers to change jobs or leave the country without needing employer approval after completing one year of their contract. [10] Bahrain has also made strides with its Flexi-Permit 11 , offering migrant workers significant freedoms to change jobs and leave the country without requiring their employer's permission, marking a departure from traditional kafala restrictions.

Despite these positive steps, implementation gaps and inadequate protections undermine these reforms. Navigating the process of obtaining exit permits through interior ministries remains challenging for many migrant workers, who often lack awareness of their rights. Moreover, they face potential retaliation from employers, including false accusations of theft or desertion. Furthermore, many reform efforts neglect domestic workers. Even Bahrain, previously a leader in kafala reforms, has seen persisting gaps, as high permit costs discourage eligible workers from self-sponsorship. A 2022 revision further limited benefits to select professions. [12]

In Lebanon, where some of the harshest aspects of the kafala system persist, prospects for reform appear bleak. The Syndicate of Owners of Recruitment Agencies of Lebanon wields considerable influence over legislative changes and exerts control over administrative courts, effectively opposing comprehensive reforms due to perceived economic advantages of the kafala system.

Recommendations For A Way Ahead

The kafala system, deeply ingrained in the economic and social fabric of many Gulf countries, provides crucial employment opportunities for a significant migrant workforce, thereby supporting the livelihoods of countless families both in the host and home countries. Despite policy reforms under the kafala system often failing in implementation, dismantling the entire framework is not a viable option as millions of households depend on it for economic survival. To address the issues while maintaining the economic benefits, a series of targeted recommendations could be proposed.

"The catalyst for transformation often lies within the heart of its inception".

While a significant portion of recruitment in the kafala system begins in the countries of origin, it is unjustified for these origin countries to merely ban labor migration, as such actions could lead to corrupt practices and human trafficking. Instead of imposing bans, origin countries should negotiate common codes of protection for workers in host countries,

enforce laws prohibiting the charging of recruitment fees to employees, and register and monitor local recruitment agencies for deceptive practices. Contracts should be made available in languages that migrants can understand. Additionally, the capacity of embassies in receiving countries should be strengthened to support survivors, and workers should be formally trained about the terms of their contracts, potential risks, host country laws, and available methods of redress.

"Human dignity should be the guiding principle in every labor policy, transcending

boundaries and nationalities."

The responsibility now lies on host countries to dismantle the kafala system and integrate migrant workers into national labor laws rather than leaving their regulation to the interior ministry. This means setting minimum wages and ensuring basic working conditions for domestic workers, who are often left out of reforms. It's also important to strengthen criminal justice responses by providing free legal and interpretation services, and training police and first responders regularly on how to identify victims to prevent their detention and deportation. Moreover, there should be effective reporting mechanisms with protections for whistle-blowers so workers can report issues without fear. These steps are crucial for ensuring that migrant workers are treated fairly and their rights are protected.

In conclusion, while it is easy to place blame on the governments of both the host and origin countries, it is equally important for us to take responsibility. We must educate individuals from lower socioeconomic backgrounds about alternative employment opportunities within their own countries. For those seeking work abroad, it is crucial to inform them about legal requirements, contract terms, and the risks associated with the kafala system. Additionally, we should work towards reducing xenophobia against migrant populations through online platforms and advocate for systemic change from within. Ultimately, we must embrace the challenge to reform the kafala system ourselves. As the saying goes,

"If not us, then who? If not now, then when?"

References:

1. Indian Air Force Brings Back 45 Indians Killed in Kuwait Building Fire: Key Details, Bus. Standard (June 14, 2024), https://www.business-standard.com/india-news/iaf-brings-back-45-indians-killed-in-kuwait-building- fire-key-details 124061400415_1.html.

2. Kuwait Fire: Kerala Pays Respect to Victims at Kochi Airport, Hindu (June 14, 2024), https://www.thehindu.com/news/national/kuwait-fire-kerala-pays-respect-to-victims-at-kochi- airport/article68288441.ece

3. Kuwait to Give USD 15,000 Compensation to Kin of Mangaf Fire Victims: Report, Times India (June 14, 2024), https://timesofindia.indiatimes.com/india/kuwait-to-give-usd-15000-compensation-to-kin-of-mangaf- fire-victims-report/articleshow/111101172.cms.

4. What Is the Kafala System?, Council on Foreign Rel., https://www.cfr.org/backgrounder/what-kafala-system

(last updated June 23, 2021).

5. As Migrants Slave in Gulf, India Is Stuck Choosing Between Worker Rights and Remittances, Econ. Times (Nov. 19, 2015), https://m.economictimes.com/nri/forex-and-remittance/as-migrants-slave-in-gulf-india-is- stuck-choosing-between-worker-rights-and-remittances/articleshow/49838388.cms.

6. What is keeping Bangladeshis stuck in low-skilled overseas jobs, The Business Standard (June 2, 2022), https://www.tbsnews.net/economy/what-is-keeping-bangladeshis-stuck-low-skilled-overseas-jobs-443562.

7. G. Sampath, The Kafala system will continue to treat workers as dispensable, The Hindu (June 16, 2024), https://www.thehindu.com/opinion/op-ed/the-kafala-system-will-continue-to-treat-workers-as- dispensable/article68296420.ece.

8. Walk Free Foundation, "Life Under the Kafala System," Global Slavery Index, accessed June 25, 2024, https://www.walkfree.org/global-slavery-index/findings/spotlights/life-under-the-kafala-system/.

9. Connect Resources, "Qatar NOC (No Objection Certificate)," accessed June 25, 2024, https://connectresources.ae/guides/qatarnoc#:~:text=The%20necessity%20that%20employees%20get,thanks%20to%20this%20progressive%20move.

10. Aadmi, Saudi Arabian New Labor Reforms & Change's accessed June 25, 2024, https://aadmi.com/saudi-arabian-new-labor-reforms-changes/.

11. Ogletree Deakins, Flexi Work Permit Allows Expats to Remain in Bahrain Without a Local Sponsor's

February 7, 2018, accessed June 25, 2024, https://ogletree.com/international-employment-update/articles/march- 2018/bahrain/2018-02-07/flexi-work-permit-allows-expats-to-remain-in-bahrain-without-a-local-sponsor/.

12. Migrant-Rights.org, Bahrain ends its flexi-permit program and announces labour reform's October 2022, accessed June 25, 2024, https://www.migrant-rights.org/2022/10/bahrain-ends-its-flexi-permit-program-and- announces-labour-reforms/.