Malaysia: Agency frees foreign domestic workers of hiring fee burden through an ethical business model

Author: Beh Li Yi, Reuters, Published on: 13 October 2019

"Malaysia's first 'ethical' job agency targets modern slavery," 07 October 2019

A Malaysian recruitment agency set to launch a pioneering "ethical" hiring model has called for an industry overhaul to tackle debt bondage among migrant workers and end modern slavery in the Southeast Asian nation.

Led by a team of three women, Kuala Lumpur-based Pinkcollar has billed itself as the first ethical recruitment agency in Malaysia, which relies heavily on foreign laborers to fill jobs in construction, factories, or domestic care.

The company will drop the hefty fees usually imposed by recruitment firms on workers for helping them find jobs...

Pinkcollar will focus on domestic workers from the Philippines in its first phase, recruiting through social media before matching them with employers through interviews that give both parties a say in the hiring process and terms.

 The hiring fees, which typically range from 12,000 to 18,000 Malaysian ringgit ($2,900-$4,300), will be payable by the employer, said Pinkcollar's Ms. Law.

Recruitment agencies are not allowed to charge workers in the formal sectors...[b]ut domestic workers are excluded from the clause, and typically have to spend six months with almost all their wages deducted to cover the costs they owe the recruiters for local travel or medical tests...

 

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Related companies: Pinkcollar