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Verite’s analysis of thousands of recent recruitment transactions between employers and labor recruiters in high-risk labor migration corridors into the Southeast Asia, Middle East, and Gulf Cooperation Council regions finds that fewer than 10% of employers are recruiting workers ethically by paying the full cost of recruitment and preventing workers from being charged for their job.
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.
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
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.