Forced labour may take different forms, such as those described by the International Labour Organization (ILO): “Penalties may include imprisonment, the threat or use of physical violence and preventing a worker from moving freely outside the work site. Threats also may be more subtle such as threats to harm a victim’s family; threats to denounce an illegal worker to the authorities; or withholding wages to compel a worker to stay in hopes of eventually being paid.” Determining whether work is performed voluntarily involves looking at external and indirect pressures. One-fifth of people in forced labour exploitation are in situations of debt bondage. Recruitment fees are a primary driver of this exploitation, creating financial burdens that trap migrant workers before they even begin work.
The Hidden Cost of Recruitment Fees
Recruitment fees create immediate debt for migrant workers who often borrow at exorbitant interest rates to secure jobs abroad. This debt transforms employment into bondage, with workers unable to leave exploitative conditions until debts are repaid. This power imbalance facilitates numerous abuses including excessive working hours, withheld wages, and dangerous conditions—all while workers fear reporting violations could result in job loss or deportation. In its report Fair Recruitment Roadmap: A guide for national implementation (2024), ILO outlines the following considerations:
Essential Action Steps
Organizations must implement these critical measures:
- Absorb all recruitment costs rather than passing them to workers
- Establish clear no-fee policies in recruitment documentation consistent with the Dhaka Principles
- Partner only with legally registered recruitment agencies
- Prohibit deposits or bonds from workers
- Verify through arrival interviews that no fees were charged
- Include recruitment practices in regular supply chain audits
- Create secure, confidential reporting channels for workers
A few multistakeholder initiatives have released clear guidance including Consumer Good Forum / AIM-Progress and IHRB.
From Commitment to Implementation
Effective implementation requires systematic integration of these principles throughout operations. Train all hiring personnel on ethical recruitment standards. Develop monitoring systems that verify compliance through worker interviews in their native language. When violations occur, prioritize both remediation for affected workers and addressing systemic gaps in your processes.
Conclusion: A Path Forward with Ksapa
Eliminating recruitment fees is both an ethical imperative and business necessity. Ksapa helps organizations develop tailored recruitment frameworks aligned with international standards. Our experts assess current processes, develop customized policies, train teams, implement monitoring systems, and provide remediation support. Through our global network of local partners, we ensure culturally appropriate implementation that protects migrant workers throughout your operations and supply chains, while reducing your legal and reputational risks.
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Author of several books and resources on business, sustainability and responsibility. Working with top decision makers pursuing transformational changes for their organizations, leaders and industries. Working with executives improving resilience and competitiveness of their company and products given their climate and human right business agendas. Connect with Farid Baddache on Twitter at @Fbaddache.
