HARTALEGA Holdings Bhd is set to reimburse RM40 mil in fees previously paid by its migrant workers to employment agents during the recruitment process, as part of its social compliance policy.
“We are strongly committed to continuously enhance our social compliance policies in line with international benchmarks. We are pleased to mark our progress with the reimbursement of recruitment fees.
“This follows our zero recruitment cost policy instituted in April 2019, to protect the welfare of migrant workers and ensure they are free from any recruitment costs,” said Hartalega CEO Kuan Mun Leong.
Kuan added that the issue of recruitment fees paid to third parties by migrant workers is a complex global issue that requires the involvement of stakeholders to reach a solution.
He said it was towards the later part of 2019 that Hartalega decided to remediate migrant workers who joined the group prior to the implementation of the group’s zero recruitment cost policy.
“Earlier this year, we appointed a third-party non-profit organisation with a proven track record in social compliance and recruitment fee remediation to conduct interviews with affected workers.
“Despite a delay caused by the movement control order, these interviews were concluded in June.
“We are targeting remediation to begin by the fourth quarter of 2020 and to be completed over 24 months. Meanwhile, we are also working with another external independent party to review our remediation plan,” he said.
At the morning close, Hartalega’s shares were last done at RM18.60, down 54 sen, with 6.77 million shares traded. – Aug 10, 2020
