In a long-expected announcement, Labour Minister Issa bin Saad al-Jafali al-Nuaimi said the "kafala" rules would be abolished from tomorrow, December 13.
He said a contract-based system to govern the gas-rich Gulf emirate's 2.1 million foreign workers would take its place.
Under "kafala", all foreign workers working in Qatar currently require a local sponsor, in the form of an individual or company, and need their permission to switch jobs or leave the country.
The system was compared to modern-day slavery, and left vulnerable workers with little protection and open to abuse, critics said.
"It replaces the kafala system with a modernised, contract-based system that safeguards workers' rights and increases job flexibility."
Freedom of movement is guaranteed under the new rules, said Qatari officials, including giving workers the right to change jobs or leave the country, as well as offering them greater contract protection.
The changes, known formally as Law No. 21 of 2015, were first announced by Emir Sheikh Tamim bin Hamad Al-Thani last year.
Ever since Qatar was chosen to host the 2022 World Cup, its labour laws have been internationally condemned and "kafala" has been at the heart of that criticism.
"We welcome any comment or constructive criticism, and will continue to do so in the future," he said.
"However, we urge the international community not to draw any definitive conclusions until there has been time to see the new law in action.
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