-
Economic crisis may pave way for reforms to Lebanon's sponsorship system

Reforms to Lebanon’s “kafala” sponsorship system for importing migrant domestic workers from Africa and Asia have long been sought by advocates who say the current system is rife with human rights violations. Lebanon's
Over the past year, the reform efforts have found high-level support in the Labor Ministry. Now, with the country’s economic crisis shrinking the purchasing power of Lebanon’s lower and middle classes, some experts say the time is ripe for “dismantling” the system.
A coalition including human rights groups, government officials, migrant workers, and employers, as well as representatives of the embassies of the workers’ countries, gathered this week in Beirut to discuss changes the Ministry of Labor is considering making to the standard work contract for foreign domestic workers, who currently number about 250,000 in Lebanon. Lebanon's
The new proposed contract aims to give the workers greater protections and could be a step toward more sweeping legislative changes that would give domestic workers the same legal rights as any other employees in the country.
“This will be quite a change in the way Lebanese employ domestic workers,” Ryszard Cholewinski, senior migration specialist with the International Labour Organization (ILO), which has been coordinating a working group studying potential reforms, told Al Arabiya English. “It will not be a popular reform with everyone, but we also feel that in this time of crisis – not just economic but political – this is also an opportunity to put in place much-needed reform.”
While details of the new contract are still being negotiated, as currently proposed, it would address “what have been some of the most abusive elements around the kafala sponsorship system when it comes to domestic workers,” Cholewinski said. For instance, the proposed contract explicitly forbids the common practices of employers confiscating workers’ passports and not allowing them to leave the house on mandated one day off per week. The new contract also increases domestic workers’ mandated annual leave from six days to 15. Lebanon's
And perhaps most important, it will include a clause allowing either the employee or the employer to terminate employment at a month’s notice, which is “very much a step forward when it comes to…addressing issues around forced labor and trafficking,” Cholewinski said. The exact conditions of termination are still being negotiated.
Under the current contract, workers only have the right to terminate the contract if they're not paid for three months, if the employer or a family member physically or sexually abused them and it's officially investigated and proven, or if the employer forces them to work a job that they weren't contracted to do.
At the request of former Labor Minister Camille Abousleiman in April of 2018, the ILO convened a working group to recommend measures that could be taken by the ministry to improve protections for migrant workers. While more sweeping changes – such as removing the language that exempts domestic workers from Lebanon’s labor law – would require approval by Parliament, the Labor Minister can act administratively to change the standard contract.
The formation of the working group predated the mass protests that have swept across Lebanon since October and the country’s ongoing economic crisis, but the crisis has added a new urgency to the matter. Lebanon's
As Human Rights Watch noted in a recent report, many domestic workers have reported that their salaries have been slashed or gone unpaid as their employers have lost their jobs or received reduced payments.
Even those who are still receiving payment have seen the real value of their already-low wages decrease as Lebanon’s currency has undergone a de facto devaluation. For instance, a worker who gets 300,000 Lebanese lira a month – the equivalent of $200 at the official exchange rate – now gets as little as $120 at the black-market rate.
Speaking at the meeting convened to discuss the proposed changes, Ghassan Dibeh, chair of the department of economics at the Lebanese American University said that the economic crisis is also likely to bring about a major decrease in demand for live-in domestic workers, given that many of the families who previously employed them are from the now-struggling middle and lower classes.
“I think the current economic crisis will bring about the end of the kafala system,” Dibeh said. “Its origin is economic, and its end will be economic.”
Indeed, Ali Amine, president of the Syndicate of Recruitment Agencies in Lebanon, told the group that the number of foreign domestic workers coming to Lebanon had dropped off steeply since 2018.
Current Labor Minister Lamia Yammine attended the opening session of this week’s meeting on the proposed reforms, where she told the group that “Lebanon has been and will remain an active member in the international rights system” and is committed to protecting “the rights of all the workers on Lebanese soil, without discrimination.” Yammine declined to be interviewed for this piece.
Some of the workers themselves said they are hopeful that real reforms may finally be made. Lebanon's
“Eleven years I’ve been working on this,” said Malani Kandaarachige, a migrant worker from Sri Lanka who is one of the founders of the Alliance of Migrant Domestic Workers in Lebanon. “We’re tired.”
Kandaarachige said she hopes the workers will be given meaningful input in the final contract. levant
“We want our voice as domestic workers, not for someone to give us something to read or somebody to handle us,” she said. “We are the ones facing the problems.”
Meriam Prado of the Philippines, also a founding member of the alliance, said it’s the first time she has seen serious movement on reforms to the kafala system.
“There’s a lot of discussion to do, but we’re hoping for the best,” she said.
source: Abby Sewell levant
You May Also Like
Popular Posts
Caricature
BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
opinion
Report
ads
Newsletter
Subscribe to our mailing list to get the new updates!