Within the context of a larger ongoing reform agenda aimed at regulating the labor force and ending the trade of selling residency permits, Kuwait officials are proceeding with a shift towards a new model of “freelancers” visa services under which expatriates would work without a traditional sponsor, through a more systematic and regulated legal framework.
This proposal was declared by the First Deputy Prime Minister and Minister of Interior, Sheikh Fahd Al-Yousef, during a recent meeting with the representatives of the private sector, and is widely discussed across business circles and social media platforms.
The program is geared towards addressing the historic issues of unchecked labor, residency agency, and exorbitant daily wages, which in others are said to be at KD 25 or higher per day on the basic services.
Opponents of the existing system feel that the lack of regulation has contributed to unequal quality standards and the lack of accountability, and proponents of the new model feel that having a regulated freelance residency will be able to add transparency, protect workers against exploitation, and improve the quality of services.
As per preliminary guidelines, the first phase of the proposed system would focus on simple professions. Annual fees will be between KD 750 and KD 1,000, which will be renewed and must meet the stipulations of the regulations.
They encompass the registration of a verified residential address, furnishing of an approved email account, and providing clear personal data, along with other requirements that shall be stipulated by the competent authorities.
Authorities will release comprehensive information about the system, the mechanism of using applications, and qualified categories within the following two months.
The move has been largely greeted with enthusiasm by economists and entrepreneurs who indicate it as a qualitative change in the regulation of labor markets.
They claim that by bringing marginal and unregulated employees to a formal system, they would have better control over them and eliminate cases of illegal practices, as well as establish a more competitive and balanced market environment.
However, formalizing freelance employment is also likely to stem out residency trading through the sealing of loopholes used by the intermediaries. Entrepreneur Bashar Al-Ustad has assured that the ruling is a move in the correct direction in the fight against human trafficking and labor exploitation.
He noted that the success of the system will be pegged on coming up with stringent regulatory measures, especially in the verification of professions and checking the quality standards to make sure that flexibility does not translate to market anarchy.
He added that the state should have a precise and regularly updated database that will be able to arrange skilled professional labor based on the market demand, creating a balance between supply and demand, and improving overall labor efficiency on the market.
In his turn, Abdulaziz Bandar, head of the delivery company owners committee, said that the suggested system might contribute to the main problem of residency trading and defining the real locations and activity of workers.
He added that it should proceed with elaborate regulatory frameworks that serve to not only ensure economic stability but also to shield legitimate businesses.
Bandar warned that industries like delivery services may suffer unfair competition unless clear operational and quality standards are implemented.
The observers indicated that the introduction of a regulated “freelancers” system might significantly eliminate the size of the informal economy by bringing large segments of freelance and marginal workers under official supervision.
In its turn, it would probably lead to the improvement of the quality of services, a better adherence to the labor regulations, and higher state incomes in the form of structured fees and control mechanisms.
The proposed reform is a subset of a broader set of labor market regulations that will help increase discipline, safeguard the rights of stakeholders, and adhere to the employment system to the contemporary regional and international standards.
When properly executed, the initiative of the “freelancers” could be the turning point toward a new approach to the organization and viability of the labor market in the country.
