The Arab Gulf state is one of the wealthiest in the world, but its treatment of foreign workers from countries like India, Nepal and Bangladesh has come under scrutiny as it spends billions of dollars on building new infrastructure in the run-up to hosting the 2022 football World Cup.
A work-sponsorship system, known as Kefala, currently requires all foreign workers to obtain their employer's consent to travel abroad or switch jobs, a measure rights groups say leaves workers prone to exploitation and forced labour.
The reforms will establish the creation of state-run "grievance committees" to which workers can appeal if employers deny them permission.
They will also allow workers who have completed contracts to change jobs freely and imposes fines of up to 25,000 riyals ($6,865.87) on businesses who confiscate employees' passports.
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