The sponsorship system of foreign workers in Saudi Arabia could end soon if a draft law prepared by the Ministry of Labour is adopted, a report said.

The draft law will be submitted to the Council of Ministers in the next few months for final approval, a source was quoted as saying by the Saudi Gazette.

An agency affiliated to the ministry will be created to look after foreign workers.

The legislation will prevent employers from holding the passports of their employees. It will also strip the sponsor of the power of issuing an objection letter which currently prevents employees from bringing their families or visiting their relatives in other regions of the kingdom, the report said.

It also proposes the issuing of a mandatory insurance policy to guarantee the financial rights of employers and employees. The policy is also meant to cover the payment of employees’ financial entitlements for at least six months.

The insurance also covers employees’ ticket fares in case of the deportation of the employer. Employers are also covered for risks such as theft, cheating, embezzlement, breach of confidentiality and any other damages incurred by employees, the report said.