Consultancy: Regional Paper under MBHR programme

Project Context and Scope:

Under its Migration, Business and Human Rights programming, IOM supports private sector actors to ensure they are able to uphold the rights of migrant workers in their operations and supply chain, in line with international standards, as laid out in ILO's General Principles and Operational Guidelines for Fair Recruitment and Definition of Recruitment Fees and Related Costs and in IOM's Migrant Worker Guidelines for Employers. Similarly, the ILO promotes the adoption and application of international labour standards (ILS) in the framework of its regional programmes on protection of the rights of migrant workers and effective labour migration governance. International standards require that no recruitment fees or costs related to the recruitment process should be charged to the migrant workers, although narrow exceptions can be made based on certain criteria. Adhering to this principle is important in preventing risks to migrant workers during recruitment and employment, as payment of recruitment fees and related costs by migrant workers may lead to debt bondage, which in turn can lead to vulnerabilities during employment. For instance, migrant workers may not be able to leave their job due to debt, even if they find themselves in exploitative or abusive conditions. The principle on prohibition of recruitment fees and related costs also prescribes that where worker-paid fees and/or costs are identified, companies have a responsibility to provide remediation, typically in the form of reimbursement or repayment.

Due to increased awareness of international standards and legislation (such as the EUCSDDD, the Australia Modern Slavery Act, the French Duty of Vigilance Act and several other upcoming regulations at various stages of approval) requiring companies to carry out human rights due diligence and ensure there is no forced labour present in supply chains, brands increasingly make commitments to the 'employer pays principle' and expect their suppliers globally to implement this commitment throughout their operations and supply chains. However, in the changing and complex landscape of labour migration and as companies advance on the implementation

of the principle, technical questions arise regarding its application, such as what fees and related costs should be included and what falls outside the remit of the definition; or fees and costs in the context of in-country recruitment; and how to remediate 'historical fees' paid by migrant workers recruited prior to a company's commitment to the employer pays principle, among others.

Various actors, such as consultancy firms, civil society organizations, and UN agencies, already provide guidance, advice and recommendations to companies on the repayment and reimbursement of worker-paid fees and costs. However, different actors have different interpretations, and this may result in conflicting recommendations and guidance provided to companies. Conflicting guidance may be confusing to companies and may lead to non-satisfactory reimbursement or repayment provided to affected workers.

In this light, IOM, in collaboration with the ILO, seeks to engage a consultant to support the development of a case compendium on emerging practices among businesses on reimbursement and repayment of worker-paid recruitment fees and related costs, aiming to provide a streamlined reference point for relevant actor.

Organizational Department / Unit to which the Consultant is contributing: MBHR Asia, LM.0532, LMI IOM Malaysia