Business

Hartalega settles RM41 mil recruitment fee remediation

Glove manufacturer says reimbursement process completed within 8 months, well ahead of initial target

Updated 5 years ago · Published on 08 Jun 2021 3:30PM

Hartalega settles RM41 mil recruitment fee remediation
Hartalega Holdings Bhd says it is committed to continuously enhance its social compliance practices. – File pic, June 8, 2021

KUALA LUMPUR – Hartalega Holdings Bhd has completed its remediation of recruitment fees, totalling RM41 million.

Hartalega, in a filing with Bursa Malaysia today, said the reimbursement process, which commenced in November last year, was completed within eight months on June 4, well ahead of its initial target.

“The reimbursement was made to workers who joined the group prior to the implementation of its Zero Recruitment Cost Policy on April 1, 2019, and had previously paid recruitment fees to employment agents during the recruitment process.”

Hartalega will also reimburse current workers who joined under the Zero Recruitment Cost Policy.

“Under the policy, Hartalega has established four checkpoints: during the interview stage in the source country, before departure to Malaysia, arrival in Malaysia and three months into employment with Hartalega to ensure workers are not required to pay any fee.”

Nevertheless, the glove manufacturer said it is conscious of the fact that even with the robust checkpoints in place, there can still be workers that may not have reported any payment that they may have made.

“As such, the group is engaging with current workers to countercheck on this matter.

“This is part of its commitment to ensure none of its workers pay any fee to work at Hartalega.”

Reflecting its commitment to continuously enhance its social compliance practices, Hartalega said it has rolled out the next phase of the remediation programme.

This entails extending the programme to its former workers who left the company on or after the Zero Recruitment Cost Policy was implemented, it added. – Bernama, June 8, 2021

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