FGV Holdings Bhd Implements Refund Program for Migrant Worker Recruitment Costs

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Illustration of Palm oil plantation. Photo by: Sawit Fest 2021 / Hendra A Setyawan

PALMOILMAGAZINE, KUALA LUMPUR – FGV Holdings Bhd announced changes to the reimbursement of recruitment costs for migrant workers previously paid to third parties. The program will provide refunds to former workers from Nepal, India, and Bangladesh who were employed between September 2018 and December 2022.

Additionally, the scheme covers workers from these countries who were employed from January 2023 until before 2024 but are no longer employed.

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The announcement was officially posted on the company’s Facebook page and underscores FGV Holdings’ commitment to implementing sustainable recruitment practices and adhering to the ’employer pays’ principle.

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“FGV is committed to deliver responsible recruitment process and principle to pay the workers. By independently having review, FGV found that the migrant workers might had paid the recruitment process and other related things to be working at FGV. To obey the principle ‘employer pays’, FGV decided to offer and substitute the recruitment costs for the former workers in or after 1 September 2018,” the company mentioned, as Palmoilmagazine.com quoted from businesstoday.com.my.

This would be the same significant as the Customs and Border Protection in September 2020 that managed withhold release order (WRO) to FGV, banned palm oil imports and its related products because of forced labor accusation.

By the early of this year, FGV did some things to solve the issue by substituting recruitment costs for about RM 72,2 million for 19.673 migrant workers to modify WRO.

The initiative to substitute recruitment cost would reflect that FGV would confirm that every migrant worker would be treated fair and every recruitment cost would not be a burden for them. This is the same commitment of the company to realize ethical and responsible recruitment principles. (T2)

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