Amidst a complex regulatory environment, organizations face an increasing demand to disclose their operational strategies to foster responsible business practices. The European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) compels organizations to proactively address environmental and human rights issues in their operations. As businesses embrace the integration of CSDDD, it becomes imperative to stay updated and aligned with international standards and local regulations, particularly in the realm of recruitment practices.
Within Malaysia, the Federal Constitution unequivocally prohibits slavery and all forms of forced labor. The Malaysian government, in alignment with the Employment Act 1955, actively enforces measures to safeguard workers' rights and well-being. However, the management system for foreign workers still grapples with disarray, marked by a lack of policies and frameworks.
The imminent implementation of CSDDD regulations in 2025 poses potential ramifications for Malaysian businesses. Given the expansive reach of global due diligence across business operations, subsidiaries and value chains, it is crucial to establish clear guidelines and procedures for ethical recruitment practices within organizations. Organizations would need to integrate the necessary mechanisms throughout their supply chains and operations and prioritize the wellbeing of their workers to foster an ethical and sustainable legacy for future generations.
This whitepaper aims to provide insights into the enduring challenges surrounding recruitment practices for foreign workers, encompassing fees, procedures and more, as well as the significant challenges faced by employers in implementing ethical recruitment practices.
