As new and emerging human rights due diligence (HRDD) legislation, such as the recently passed EU Corporate Social Due Diligence Directive (CSDDD), gains traction, the demand for transparent and accurate information regarding labor recruitment costs has escalated. As global supply chains grapple with the pervasive issue of debt bondage, a deeply rooted manifestation of forced labor, the urgent need to shed light on the hidden financial burdens shouldered by migrant workers has become critical.
The Fostering Fee Accountability and Cost Tracking (FFACT) project, a collaborative effort between Verité and over 10 other civil society organizations (CSOs) in India, Bangladesh, and Malaysia, is addressing the need for transparent, accurate calculations of recruitment costs through worker-led digital
Social audits have proven to be ineffective in detecting and preventing debt bonded labor, the most pervasive and entrenched form of forced labor in global supply chains today. While deep dive, focused, worker-centric investigations of the type conducted by Verité and like-minded organizations, are the gold standard to detect and remedy these abuses, it is neither practical nor cost effective for buyers, investors, and other stakeholders to use this approach at every workplace in high-risk countries, sectors, supply chain tiers, or migration corridors.
Dhaka Principle 7 – Working conditions are safe and decent – the vital principle to ensure migrant workers enjoy safe and decent conditions of work, free from harassment, any form of intimidation or inhuman treatment. They should receive adequate health and safety provision and training in relevant languages.
Debt bondage, due to the imposition of recruitment fees and costs on foreign migrant workers, remains the most pervasive and entrenched form of forced labor in global supply chains today. Reimbursement is an important remedy but, on its own, it is not a solution to the underlying root causes of this ongoing labor abuse.
The private security sector is one of the fastest growing in the world, as security guards are increasingly hired to guard factories, office buildings, extractive worksites, residential facilities, transport hubs, and hotels, in addition to military and other government facilities. Migrant workers are often hired for these positions and, as such, a risk of human trafficking exists.
