Why is FGV repaying recruitment fees to migrant workers?

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FGV Holdings Bhd is Repaying Recruitment Fees to Migrant Workers to Uphold the Employer Pays Principle and Address Past Recruitment Practices

FGV Holdings Bhd is initiating a reimbursement programme to repay recruitment fees that migrant workers may have paid to third parties to secure employment. This initiative aims to align FGV's practices with the Employer Pays Principle, which stipulates that employers should bear all costs associated with recruitment. The programme specifically targets former employees from Indonesia, India, and Bangladesh who were recruited within defined periods, reflecting a commitment to rectifying issues identified through an independent review and in response to previous allegations of forced labour.
Reimbursement Covers Specific Recruitment Periods

The reimbursement drive is designed to cover two distinct groups of former employees. The first category includes workers from Indonesia, India, and Bangladesh who were recruited between September 2018 and December 2022. A second group encompasses former employees from the same countries who joined FGV from January 2023 but subsequently left before the end of that year. This detailed segmentation ensures that the compensation is directed to those potentially affected by the recruitment fee practices during these specified intervals.
Commitment to the Employer Pays Principle

FGV has publicly stated its commitment to responsible recruitment and adherence to the Employer Pays Principle. An independent review conducted by the company revealed that migrant workers might have incurred recruitment fees and related costs to obtain employment. Consequently, FGV has decided to offer these reimbursements to ensure that the financial burden of recruitment does not fall on the workers, thereby aligning with internationally recognised fair labour standards.
Addressing Allegations and Previous Actions

The current reimbursement drive is also linked to previous international scrutiny. In September 2020, the United States Customs and Border Protection (CBP) imposed a Withhold Release Order (WRO) on FGV due to allegations of forced labour practices. As part of efforts to have this WRO modified, FGV had earlier in the year reimbursed RM72.2 million in recruitment fees to 19,673 migrant workers. This latest initiative represents a continuation of FGV's efforts to demonstrate compliance and improve its recruitment and employment practices.

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Why is FGV repaying recruitment fees to migrant workers?

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