Brunei Recruitment Fees - Transient Workers Count Tootwc2.org.sg/wp-content/uploads/2017/05/Brunei-Recruit… · · 2017-05-03... , The role of recruitment fees and abusive and

TWC2RecruitmentCostsResearchWorkingGroup

ResearchBriefMigrantWorkerRecruitmentCosts

Brunei

PeterTeoApril2017BruneiDarussalamhasthesmallestpopulationinSoutheastAsiaandisoneofthewealthiestcountriesintheworldpercapita.In2014thepopulationofBruneistoodat411,900andtheemployedworkforcewas 189,500. The Southeast Asian region hosts two of theworld’s leading countries of origin formigrantlabour,IndonesiaandthePhilippines,andtwoleadingdestinationcountries,SingaporeandMalaysia.BruneihasthehighestpercentageofmigrantworkersinSoutheastAsia.In2014,forty-sixpercentofthe100,879employeesintheprivatesectorwereforeigners.Althoughlargeinpercentageterms,thesmallernumberofmigrantworkersinBruneicomparedtoother destination countries in Southeast Asia has allowed the country to implementmeasures toprotectmigrantworkerrightsthatwouldbedifficultinlargercountriesintheregion.Nevertheless,mostlowskilledanddomesticworkersinBruneistillpayrecruitmentfeestoworkinBrunei.ThispaperexaminestheimpactofrecruitmentfeesonmigrantworkersinBruneiinthecontextofeconomicandemployment trends in thecountry. Italsoexamines thebehavioural influences thatestablishandreinforcetheuseofrecruitmentfeesandpossibledriversforchange.Lastly,thepaperhighlightssomeofthestepstheGovernmentofBruneihastakentoprotectmigrantworkerrightsanddiscussesactionsthatsomeemployersandthegovernmentandorigincountriesmightconsidertoeliminatemigrantworker-fundedrecruitmentfees.

RecruitmentCosts–Brunei,April2017 Page2of25

Background

TheInternationalLabourOrganization(ILO)estimatesthattherewere2141millioninternationalmigrants

in2014andoverhalfofthemigrantswerewomen.InternationalmigrantsremittedoverUS$400billionto

developingcountriesmakingthesupplyofmigrantworkersoneofthelargestindustriesintheworld.

RecruitmentFees

The task of meeting supply and demand for international migrants across the globe typically falls on

recruitmentagenciesandbrokers.Itpresentsalucrativebusinessopportunity.Employersneedrecruiters

andrecruitmentagenciestohelplocatetalentinforeigncountries.Workersrelyonrecruitmentagencies

toidentifyjobopportunitiesandmanoeuvercomplexhiringandimmigrationprocedures.Thisfunctionis

indispensablefornewunskilledworkerslivinginruralareasinorigincountries.Agenciesinmigrantworker

origincountriesanddestinationcountrieswherepotentialemployersarelocatedfacilitatevisas,medical

check-ups, travelarrangements,pre-departureorientationandtraining.Notwithstanding thegoodthat

theseagenciesbring,thecentralrolethattheyplaybetweentheimpoverishedseekingapathtobreakout

of the cycle of poverty and employers seeking low cost labour creates opportunities for abusive

recruitmentpracticesthroughtheuseofrecruitmentfees.

In a paper titled, The role of recruitment fees and abusive and fraudulent recruitment practices of

recruitmentagenciesintraffickinginpersons,theUnitedNationsOfficeonDrugsandCrimeswarnsof

thedangersofworker-fundedrecruitmentfees:2

“Inmanycountriesrecruitersandrecruitmentagencieschargeworkersfeesforrecruitmentservicesthat

farexceedthelegallimitsorthatmightbeprohibitedaltogether.Theindebtednessthatoftenfollowsand

the need to repay the debt often drives workers to accept difficult or exploitative working conditions,

makingthemvulnerabletotraffickinginpersons.Inaddition,theroleofrecruitmentfeesandagenciesin

trafficking in persons can go beyond just creating vulnerabilities in workers to trafficking in persons.

Recruitersandrecruitmentagenciesmightbedirectlyinvolvedintraffickingcriminalnetworksaimingto

exploitworkers.”

Feesmay be charged for identifying, interviewing, referring, selecting, or placing a worker. Theymay

1UNDevelopmentAgenda”.www.ilo.org.2015,"MainstreamingofMigrationinDevelopmentPolicyandIntegratingMigrationinthePost-2015”http://www.ilo.org/wcmsp5/groups/public/---ed_protect/---protrav/---migrant/documents/genericdocument/wcms_220084.pdflastaccessedJuly20162UnitedNationsOfficeonDrugsandCrime,2015,“TheRoleofRecruitmentFeesandAbusiveandFraudulentRecruitmentPracticesofRecruitmentAgenciesinTraffickinginPersons”lastaccessedJuly2016https://www.unodc.org/documents/human-trafficking/2015/Recruitment_Fees_Report-Final-22_June_2015_AG_Final.pdf


includetravel,documentandvisaprocessing,medicalexams,andunspecifiedservicecharges.Muchof

the fees go directly to the recruiter. The final price paid by the workermay be higher than the fees

themselves. Agencies also sometimes act as money lenders, charging steep interest rates, and press

workerstopurchaseotherservicesatinflatedrates.Workersmayalsohavetopayfeestobrokersinboth

theoriginanddestinationcountries.Lowerskilledworkerstendtobemorelikelytopayrecruitmentfees

andresearchshowstheypayahigherpercentageoftheirsalaryinfees.Theyarealsolessabletonegotiate

highersalariesorworkingconditionsonceonthejob.Thereisalsoastronglinkbetweenexcessivefees

andcontractsubstitutionasworkersarepersuadedtopayhighrecruitmentfeesinexchangeforexpected

highsalaries,onlytofindactualsalariesmuchlowerwhentheyarriveindestinationcountries.

Verité, a global advocate for fair labour conditions, calls high recruitment fees a hiring trap: “Big

recruitmentfees–sometimeslegal,sometimesillegal–areoftenchargedtotheworkertoobtainthejob

overseas.Theworkermightborrowmoneytopaythefees,wageringthatthedebtwillbeeasytopayoff.

Butwhatifthetermsofwork–especiallypay–windupbeinglessfavorablethanwhatthelaborbroker

promised?Once aworker is on-site at the foreignworkplace –with a big loan and attendant interest

paymentslikeaweightonherbackandaworkvisathattieshertooneworkplace–itisdifficult,ifnot

impossible,toescape.”3

Thedistinctionbetween theprocessesmanymigrantworkersgo throughduring their recruitmentand

thoseexperiencedbytraffickedworkerscanbeathinone.Recruitersandrecruitmentagenciesfrequently

recruitworkers through fraudanddeceptionandemploy formsof coercion to controlworkers for the

ultimatepurposeofexploitation.

BruneiDarussalam

BruneiDarussalam isasovereignstate locatedonthe islandofBorneo inSoutheastAsia. Thecountry

sharestheislandwiththeMalaysianFederalterritoryofLabuanandtheMalaysianstatesofSabahtoits

north,andSarawaktoitssouth.ItalsosharestheislandwiththeIndonesianregionofKalimantanfurther

to its south. Kalimantan occupies seventy-three percent of the island by area. Brunei is one of the

wealthiestcountriesintheworld,percapita,withoilandgasgeneratingasubstantialamountofforeign

investment,incomeandjobs.

Brunei also has the smallest population in Southeast Asia. In 2014 the population of Brunei stood at

3Verité,June2010,“SummaryReport–HelpWanted:Hiring,HumanTraffickingandModern-DaySlaveryintheGlobalEconomy”http://www.verite.org/sites/default/files/images/Help_Wanted_2010.pdflastaccessedJuly2016


411,900andtheemployedworkforcestoodatonly189,5004.TheSoutheastAsianregionhoststwoleading

origincountriesformigrantlabourintheworld,IndonesiaandthePhilippines,andtwoleadingdestination

countries,SingaporeandMalaysia.TheabsolutenumberofmigrantworkersemployedinBruneimaybe

significantlylessthanthenumbersineitherofthelattercountries,butithasthehighestpercentageof

migrant workers in Southeast Asia within its borders. In a 2014 labour survey by the Department of

EconomicPlanning,only5,2775outof88,694employedinthepublicsectorwereforeigners,butforty-six

percent of the 100,879 employees in the private sector were reported to be foreigners. The size

distributionofearningsshowedconsiderableinequality.Thebottomtenpercentileearnedanaverageof

US$1.08 per hour. Since these low salaries are not attractive for migrant workers, some recruitment

agenciesadvertisemisleadinglyhigher salaries to justifyhigh recruitment fees. The low-skilledmigrant

workerthinksthefeesjustifytheexpectedsalaries,buttheactualsalariesaremuchlower,andtheworker,

uponarrivalissaddledwithdebtandlonghoursthatactasabondtotheworkplace3.

Excludedfromtheemploymentstatisticsare18,0005personsemployedinunregisteredprivatebusiness

enterprisesthatdidnotkeeprecordsofaccounts.Sixty-fivepercentofpersonsthatworkedinthisinformal

sectorwereforeignersincluding9,792domesticworkers.

StatisticsfromothersourcesreflectahighernumberofdomesticworkersinBruneithanofficialstatistics.

InastudyonIndonesianandFilipinodomesticworkersinBrunei,theSoutheastAsianWomen’sCaucus5

onASEANreported“IndonesiandomesticworkersinBruneinumbered17,000or30.9percentofthetotal

number of 55,000 Indonesian nationals in the country as of December 2012. The ease of travel from

Kalimantan, Indonesia through Sarawak,Malaysia and finally Brunei allowsmany Indonesianmigrant

domesticworkerstogotoBruneiundocumented.

SmallerinnumberthantheIndonesians,FilipinodomesticworkersinBruneitotaled4,884duringthesame

period,or23.2percentof the21,028Filipinonationalsemployed there.MostlyMuslims, theyoriginate

fromthesouthernPhilippineislandofMindanaowherethereputed“backdoor”gatewayofZamboanga

ProvinceaffordsawaytocrossbyseatoSandakan,SabahandbylandtoBrunei.Giventhisunofficialportal,

itishighlypossiblethattheactualnumberofFilipinodomesticworkersinBruneiismorethantheofficial

count.”

4DepartmentofEconomicPlanningandDevelopment,“Labourforcesurvey2014report”http://www.depd.gov.bn/DEPD%20Documents%20Library/DOS/Labour%20force%20survey_KTK/Preliminary%20Report%20Labour%20Force%20Survey%202014%20(updated).pdflastaccessedJuly20165SoutheastAsiaWomen’sCaucusonASEAN,“CompliancewithWomen’sRightsStandards.TheCaseofMigrationofDomesticWorkersfromIndonesiaandthePhilippinesinBruneiDarussalam”https://womenscaucusonasean.files.wordpress.com/2014/01/compliance-with-womens-rights-standards_domestic-workers-from-indonesia-and-the-philippines-in-brunei-2.pdflastaccessedJuly2016


AJuly2014articleintheBruneiTimes6(TheBruneiTimesceasedpublicationon8November2016,links

citedinthispaperarenolongeravailable)reportedthattherewere22,000domesticworkersinBrunei

andthattheyoriginatedmainlyfromIndonesiaandthePhilippines.

ManymigrantworkersinBruneimaybeundocumented.TheSoutheastAsiaWomen’sCaucusonASEAN

inapapertitledCompliancewithWomen’sRightsStandards:TheCaseofMigrationofDomesticWorkers

from Indonesiaand thePhilippines inBruneiDarussalam listed52,280 Indonesianmigrantworkers in

Brunei in 2011, only about 30,000ofwhomaredocumented.Undocumentedmigrantworkers usually

enterBruneithroughEntikong,WestKalimantan,themostaccessibleentrypointsinceitonlyrequiresland

travel,facilitatedbyfamilyandfriendswhohadexperiencedworkingthere.Indonesia’slabourlawsoffer

undocumentedworkersnoprotection.

6Quratul-AinBandial,BruneiTimes,August9,2011,“Betterjusticefordomesticworkers”http://www.bt.com.bn/news-national/2014/07/28/better-justice-domestic-workers#sthash.p0aXv52Y.dpbslastaccessedJuly2016


GovernmentProceduresandLegislationthatImpactForeignWorkers

ProceduresforEmployingaForeignWorker

Inorderforanemployertorecruitaforeignworkertheemployermust7:

1. RegisterwiththeLabourDepartment

2. Applyfora labourquota licensethatspecifiesthenumberof foreignworkershiscompanycan

employ

3. Obtain a bank guarantee ormake a deposit to protect the government against incurring any

expenseswhatsoeverinconnectionwiththesubsistence,housing,medicalcareorrepatriationof

theworkers. Thedeposit canbe as high as $3,463, dependingon the countryof originof the

foreignworkers.IftheworkerisfromanASEANcountry,abankguaranteeof$4628perworkeris

required.Thesedepositscanbepaidintheformofcashpaymentorbyusingbanker’sguarantee9.

4. Purchaseworkmen’scompensationinsuranceforthisworker

5. Obtain an approval letter from the foreign worker section at the Immigration and National

RegistrationDepartment

6. Requiretheforeignworkertoundergoapre-employmentmedicalexaminationinhis/herhome

countrywhichthenmustbesentbacktoBruneiforapproval

7. The application documentswhich are then filed should include an application letter from the

employer to the Director of Immigration and National Registration, an Employment Pass

applicationform,avisaapplicationformandtheemployer’sLabourLicense

7Dej-Udom&Associates,“WorkPermitsandVisasforForeignWorkersinASEANCountries”http://www.dejudomlaw.com/immigration/overview/lastaccessedJuly20168BorneoBulletin,May252016,“Needproperguidelinesonlabourquotadeposit”http://borneobulletin.com.bn/need-proper-guidelines-on-labour-quota-deposit/lastaccessedJuly20169BorneoBulletin,May28,2016,“LabourDepartmentclearstheaironforeignworkers’securitydeposits”http://borneobulletin.com.bn/labour-dept-clears-the-air-on-foreign-workers-security-deposits/lastaccessedJuly2016


8. After approval of the visa application, a foreigner can enter Brunei and the Department of

ImmigrationandNationalRegistrationwillissueanEmploymentPass

• AnEmploymentPassisvalidfor2-3yearsandcanbeextended2-3yearseachtime

9. TheforeignworkermustthenregisterwiththeNationalRegistrationIdentityCardsystemfora

SmartIdentityCard(Green).

Priorto2012,employersandindividualscouldhireforeignworkerswithoutusingarecruitmentagency.In

2004, the Government of Brunei wrote legislation to make it mandatory for employers to channel

applications for new workers, including domestic workers, through licensed recruitment and

recruitment(employment)agencies.

TheEmploymentAgenciesOrder

EmploymentAgenciesOrder, 2004 is designed to regulateemployment agencyactivitieswithinBrunei

Darussalamthrough registrationand licensingofallemploymentagencies. Itwas fullyenforcedon1st

January2012.

Therearethreeclassesofemploymentagencies.Eachrequiresitsownlicenseandsecuritydepositwhich

can be forfeited if the agency fails to complywith the law. An 'A' license, allows an agency to recruit

domesticworkersunderpersonalemployment.Thesecuritydepositforan‘A’licenseisUS$7,696.A'B'

license, allows an agency to recruit workers for companies. The security deposit for a ‘B” license is

US$11,544.A'C'licenseallowsanagencytorecruitbothdomesticworkersandcompanyemployees.The

securitydepositfora‘C’licenseisUS$15,392.

The employment agencies order appears to restrict the charging of recruitment fees by recruitment

agencies:10 “No licenseeshall chargeor receiveany formof fees, remuneration,profitor compensation

otherwisethanisprovidedinthisOrderorinanyregulationsmadethereafter.“

ThissectionofthelawhasnotbeenimplementedatthetimeofwritingbuttheDepartmentofLabourhas

said it will release guidelines that will cap11 Recruitment fees charged to employers in Brunei. The

DepartmentofLabourdoesnotplanonregulatingrecruitmentfeesincountriesoforigin12.

10GovernmentofBruneiStatues,Section20,TheEmploymentAgenciesOrder,2004http://www.agc.gov.bn/AGC%20Images/LOB/Order/DEF/Employment%20Agencies%20Order%2c%202004%20%28S%2084%29.pdflastaccessedJuly201611BorneoBulletin,November122014,“LabourDeptaddressesconcernsofthepublic”http://borneobulletin.com.bn/labour-dept-addresses-concerns-public/lastaccessedJuly2016


“… we can only regulate(sic) that are within our jurisdiction including foreign worker license security

deposits,visaapplications,medicalchecks,employmentpassandworkerinsurance.Anyrecruitmentfees

chargedbythoseoutsideofBruneiDarussalamaregovernedbythelawsandlegislationsoftherespective

Governmentsofthesendingcountries.Overtime,recruitmentpracticesabroadmaycauserecruitmentfees

to varyas sending countriesmay change their policies/regulationsas required in order to regulate the

activitiesoftheiremploymentagenciesandsuchchangesmayaffecttherecruitmentfees.”

Theconcernwithrecruitmentfeesoccurswhenthefeesarebornebythemigrantworker.Thesefeesare

carriedby themigrantworker as a heavydebt. Verité inHelpWanted:Hiring, human trafficking and

modern day slavery in the global economy writes that “Debt is perhaps the most powerful and

determinantfactorinsettingthestageforamigrantworkertobecomeenslaved.Intraditionalnotionsof

debtbondage,thedebtisheldbytheemployer,therebyestablishingadirectrelationshipofsubservience

andobligation.Amodern-dayunderstandingofdebtbondagemustbemorenuanced,andshouldinclude

scenarios under which debt is held by an independent party that does not work in collusion with the

employer. Rather, the existence of the debt – and the urgent need of themigrantworker to repay it,

particularlyifthemoneyisowedtothosewithconnectionstocriminalelements,forexample–meansthat

thisworkerwillbemoreeasilymanipulatedbytheemployertoacceptillegallylowwages,poorworking

conditions,excessiveworkhoursandthelike.Thisworkerwillalsobemuchmoreaffectedbythreatsof

deportation–andconsequentcessationofherearningpotential–thanaworkerwithnodebtobligations.”

Employment agency advertisements12 in Indonesia forwork in Brunei promiseworkerswill be able to

deduct recruitment fees from their salarieswhen theywork in Brunei. TheDepartment of Labour has

repeatedinnewspapersseveraltimesthatithasnoobjectiontopaymentofrecruitmentfeesbymigrant

workersinBruneiorintheircountryoforigin12.

“Variousemploymentagenciesoffer severalmeansofpayments for the recruitmentof foreignworkers

including deposits or down payment or even payments in instalments. The payment methods are an

agreementbetweenthevariouspartiesinvolvedincludingtheemployer,Bruneiemploymentagencies,the

migrantworkerandtheemploymentagenciesofthesendingcountries.”

Thedeductionofrecruitmentfeesfromworker’ssalariesisnotallowedunderILOConvention95of1949,

theProtectionofWagesConvention,whichprohibits all deductions fromworkers’wages intended to

12https://infotkibrunei.wordpress.comlastaccessedJuly2016


directlyorindirectlyobtainorretainworkers’employment.It isalsoprohibitedbytheILOinArticle713

paragraph 1 of the ILO Private Employment Agencies Convention (No. 181) of 1997, “…private

employment agencies shall not charge directly or indirectly, in whole or in part, any fees or costs to

workers”.

In addition to debt bondage, Verité4 identified a cluster of factorswhich, independently or in various

combinations,werecontributorstosituationsofhumantraffickingandforcedlabourformigrantworkers.

Veritéreferstotheseas“redflags”forvulnerability inrecruitmentagency-inducedhiringtraps.Oneof

thoseredflagsisraisedwhenrecruitmentagenciesgobeyondbeingintermediariesbetweentheemployer

andmigrantworkerandgoon tomanage theworker for theemployerduring thecontractperiod.An

exampleof thispracticeappearsbe found inaBruneicategory ‘C’employmentagencywebsite14 that

“…reservestherighttomanageandberesponsibleforallmigrantworkerHRintereststheyfacilitatehiring

throughthecontractperiod.”Thisuseofemploymentagenciestomanageamigrantworker’sHRinterest

blurs the line between intermediary and employer.Who is liable for unfair labour practices or unfair

dismissaloftheagencyworker? Whois liablefortransgressions inrespectofwageregulationorbasic

conditions of employment? The practice also increases the cost of hiring the migrant worker, and

compromisestransparencyandaccountabilityintherecruitmentandhiringprocess.Theriskofabusive

practices4ishighwheretheemploymentagencyisthemoneylenderbecauseofhighrecruitmentfees,or

hasconnectionstothemoneylenderinthecountryoforiginthatfinancedtherecruitmentfee.

Therewereeighty-oneemploymentagenciesoperatingin201412.TheDepartmentofLabourreceivedten

complaintsin2012,fiftyin2013andtwentyin2014.Frompressreports,mostifnotallcomplaintsappear

tocomefromemployersandwererelatedtoworkersfailingtoarrive,returningdepositsanddocuments.

Priortothelicensingofemploymentagencies,domesticworkersfromthePhilippineswenttoBruneiby

relyingontheirownsocialnetworksratherthandependingonlabourrecruitmentagencies.About3715

percentof216respondentsina1993surveyofpastandpresentFilipinodomesticworkersreportedthat

relativesalreadyworkinginBruneihadhelpedthemgetajob,while27percentreportedthatfriendshad

extendedhelp.Aboutsevenpercentsaidtheyweredirectlyrecruitedbytheiremployers.

13ILO“C181–PrivateEmploymentAgenciesConvention,1997(No.181)”http://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:312326lastaccessedJuly201614WanzeeEmploymentAgency,http://wanzeeagency.com/our-services/processlastaccessedJuly201615Mani,A,PhilippineSociologicalReview,Pg.203Vol.44,No.1/4,FilipinosasTransnationalMigrants(January-December1996),pp.194-209,“FilipinoMigrantWorkersinBruneiDarussalam”


BruneiLawsandRegulationsGoverningEmployment

ThetwostatutesthatgovernworkerrightsinBruneiareEmploymentOrder(2009),andtheWorkmen’s

CompensationAct,(1957).TheEmploymentOrder,200916,isthemainlegislationgoverningthetermsand

conditions of employment in Brunei Darussalam. It sets out the minimum terms and conditions of

employment includinghoursofwork, restdays,holidaysandpaymentof salaries.Theorder coversall

personswhoareemployedunderacontractofservice,includingmigrantworkers,butexcludesseamen,

domesticworkers,andanypersonemployedinamanagerial,executiveorconfidentialposition-exclusions

similartothoseunderSingapore’sEmploymentAct.Civilservantsandallemployeesofstatutorybodies

arealsoexcluded.Theorderspecifiestheminimumcontentsofacontractservice(section11).Itrequires

thatthecontractmustbe inwritingandsignedbytheworkerandemployer(section10). Itmakesany

contractwithtermslessfavourabletotheemployeethantheorderillegal(section12).

TheBruneiDepartmentofLabour17requiresthatforeignworkerssigntheircontractsinthepresenceofa

DepartmentofLabourofficertoavoidforgeryofdocumentsandsignatures.Domesticworkersarealso

required to sign their employment contracts18 before Department of Labour officers so that they can

briefedontheirrightsandobligations.

TheorderallowsemployeesearningUS$1,231orlessamonthtolodgecomplaintsandseekredressfor

grievancesundertheEmploymentOrdertoaCommissionerofLabourappointedbytheMinisterofHome

Affairsforviolationsoftheorder.ThisorderdoesnotprovidefortheCommissionerofLabourtoaddress

workercomplaintsagainstemploymentagencies.

The employment order excludes domesticworkers. There are no laws that formally and legally define

domesticworkerrightsandentitlements.

TheWorkmen’sCompensationAct,195719,setstheguidelinesforcompensatingaworkerinjuredinthe

courseofhisworkforthelossofearningcapacityandalsoappliestodomesticworkers.Theactwaslast

updated in 1984. The maximum compensation for death and 100 percent permanent disability, is

US$21,548andUS$27,705respectively.Thisseemslowforoneofthewealthiestcountriesintheworld,

16GovernmentofBruneiStatue,“EmploymentOrder(2009)”http://www.agc.gov.bn/AGC%20Images/LAWS/Gazette_PDF/2009/EN/s037.pdflastaccessedJuly201617BruneiDepartmentofLabour,MinistryofHomeAffairs,“DepartmentofLabourFAQs”http://www.labour.gov.bn/SitePages/FAQs.aspxlastaccessedJuly201618Quratul-AinBandial,BruneiTimes,August9,2011,“73%dropinforeignworkers'complaints”http://mail.bruneitimes.com.bn/news-national/2011/08/09/73-drop-foreign-workers-complaints#sthash.GE2q88Qx.MvFXtMzc.dpbslastaccessedJuly201619BruneiGovernmentStatues,“Workmen’sCompensationAct(1957http://www.agc.gov.bn/AGC%20Images/LAWS/ACT_PDF/cap074.pdflastaccessedinJuly2016


percapita.Asacomparisonthemaximumcompensationfordeathand100percentpermanentdisability,

isUS$154,225andUS$201,631respectivelyinnearbySingapore.

DespitetheexistenceoftheWorkmen’sCompensationAct,therearecomplaintsofinjuredworkersbeing

unable toobtain compensation. The SoutheastAsianWomen’sCaucusonASEAN reported6 that “…in

practice,someemployersmanagetoskirtthelawmandatingthemtoprovideforthehealthneedsoftheir

domesticworkers,includingcompensationforinjuriessufferedinthecourseoftheiremployment.Oneof

the Filipino domestic workers interviewed said she was unable to get compensation for an injury she

sufferedwhilecleaningheremployer’scar;theinjuryeventuallydisabledoneofherhands.Heremployers

broughthertothehospitalonlyforfirstaidtreatmentandrefusedtoshoulderfurthertreatment.”

A key strength of the Department of Labour procedures is the requirement for workers to sign their

contractsbeforeaDepartmentofLabourofficer.Thishelpstoavoidcontractsubstitutionaftertheworker

has arrived in Brunei. It does not, however, prevent differences in employment terms from those the

workeragreedtointhecountryoforiginandinBrunei.Thereappearstobenopracticallegalrecoursefor

workerswhopaidhighrecruitmentfeestoobtainhighersalaryjobsonlytofindthetermsoftheircontract

reduceduponarrivalinBruneiexceptcommonlaw,whichistooexpensiveaprocessformigrantworkers.

There appears to be little protection for domestic workers under the law, except for theWorkmen’s

Compensation Act, which as Southeast AsianWomen’s Caucus on ASEAN reports,may not be wholly

enforced.


MigrantWorkerExperienceswithRecruitmentFees

Reports of migrant worker experiences with recruitment fees come mainly from interviews in local

newspapersandnewspapersinmigrantworkers’countriesoforigin.TheBruneiCouncilonSocialWelfare,

SolidaritasPerempuan,Women’sLegalandHumanRightsBureau(WLB),Inc.andSoutheastAsiaWomen’s

CaucusjointlypublishedastudyontheMigrationofDomesticWorkersfromIndonesiaandthePhilippines

inBruneiDarussalam.

OriginandDestinationRecruitmentFees

Themagnitudeofrecruitmentfeeschargedbyrecruitmentagenciesdependsonthecountryoforiginof

themigrantworker.WorkerswhocomefromcountriesfurtherawayfromBruneiappeartopayhigher

recruitmentfees.AnexampleofhowfeesaredistributedisdescribedbyarecruitmentagencyinBrunei.

The agency reported that Indonesian agents were charging between $1,800 (US$1,385) to $2,400

(US$1,847) for each domestic worker. The Brunei agent in turn charges the employer over $3,000

(US$2,309)tomakeaprofit20. Therecruitmentagencywentontosay“If itcosts$2,200(US$1,693) to

bringonein,thenthecustomerwillenduppaying$3,000(US$2,309)andabove.Outofthesay$3,000,

$1,200(US$924)willeventuallybepaidbythemaid,$1,000(US$770)willgototheIndonesianagency,and

weare leftwith$800(US$616)asprofit.”The$1,200(US$924)recruitmentfeebornebythedomestic

worker was deducted from monthly salaries through the duration of the contract. The Indonesian

Governmenthasregulationsthatcurrentlycapthemaximumcostforhiring–whichincludestraining,flight

ticketsanddocumentprocessingat$1,200(US$924)forBrunei.TheHeadoftheLabourStandardsand

EmploymentAgencyDivisioninBruneisaidthatundertheEmploymentOrder,2009,onlyhalfofaworker’s

monthlysalarycouldbedeductedtopayrecruitmentfeesinBrunei.AformercounsellorofProtocoland

ConsularAffairsattheIndonesianembassydisagreedthiswassoinpractice.Hesaidthatalthoughthis

provisionislaidoutundertheEmploymentOrder2009,manyemployersdeductmorethanfiftypercent

of domestic worker’s salary and the recruitment fees recovered were $2,500 (US$1,924) to $2,900

(US$2,232)21.

20AaronWong,BruneiTimes,March14,2016,“ManpoweragentsupsetovercostofhiringIndonesianmaids”http://m.bt.com.bn/news-national/2016/03/14/manpower-agents-upset-over-cost-hiring-indonesian-maids#sthash.mxHPfpmg.dpuflastaccessedinJuly2016last21RachelThien,BruneiTimes,October26,2015,“Nomorethan50%canbedeductedfromamaid’ssalary”http://www.bt.com.bn/news-national/2015/10/26/%E2%80%98no-more-50-can-be-deducted-maid%E2%80%99s-salary%E2%80%99#sthash.CfB6gjt6.dpuflastaccessedinJuly2016


InaseparateBruneiTimesarticle22,theIndonesianembassywasquotedassayingtherewereover30,000

domesticworkersfromIndonesiaworkinginBrunei.TheIndonesianGovernmenthadsettheminimum

salaryforadomesticworkerinBruneiat$350(US$269)amonthbuttheembassysaidtheyhadreceived

somereportsfromIndonesiandomesticworkersaboutemployerandemployeehavingsideagreements,

andthesalaryendsupbeingonly$200(US$154)or$250(US$192)permonth.

A study by the Southeast Asia Women’s Caucus concluded that all Indonesian and Filipino domestic

workers interviewed for their study reported that employers in Brunei exact payment for these costs

throughsalarydeductions.Thestudysaidthepracticewasclearlyonerousconsideringthatanemployment

contractwasonlyfortwoyears.Thestudywentontosaythatitwasalsocommonfordomesticworkers

not to be informedof the actual amounts deducted from their salary. Theywere only told that these

deductionswererepaymentsforthecostsincurredinprocessingtheiremploymentinBrunei6.Contract

substitutionandheftysalarydeductionstorepayhighrecruitmentfeesweresomeofthemostcommon

complaints cited by Indonesian workers in a meeting with the Indonesian president when he visited

Brunei23in2015.

“Duringaquestionandanswersession,awomansaidtheburdenofrepayingrecruitmentfees—thatcan

runashighas$2,000(US$1,539)—wastoomuch,whensheonlyearnedasalaryofafewhundredamonth.

Sheaskedthepresident to look intoregulationof Indonesianemploymentagencies,andtostandardise

recruitment fees and employment contracts to avoid putting unnecessary financial burden onmigrant

workers.

SeveraldomesticworkersspoketoTheBruneiTimesabouttheprevalenceofcontractsubstitution,where

theyarepromisedhigherpayandweeklyrestdays,butonce inBrunei,amendmentsaremadetotheir

salarypackages,oftenwith$50(US$38)to$100(US$77)less.“

Highrecruitmentfeesarenotjustconfinedtodomesticworkers.TheBruneiTimesreported24thatfour

Bangladeshimenpleadedguiltytothechargeofwrongfullyconfininganagent.Theagencymanreceived

$29,400,whichwasmeant tobeused toobtain visas for thedefendant’s relatives inBangladeshwho

wantedtoworkinBrunei.Hisco-defendanthadpaid$26,000totheagent’sbusinesspartnerwhohadhad

22SallyPiri,RachelThien,BruneiTimes,March122016,“Indonesia:Maidsget$350ornoapprovalofcontracts”http://www.bt.com.bn/news-national/2016/03/12/indonesia-maids-get-350-or-no-approval-contracts#sthash.fEfpTJpE.dpuflastaccessedinJuly201623Quratul-AinBandial,BruneiTimes,Feb92015,“Jokowimeetsmigrantworkers,discusseslabourissues”http://www.bt.com.bn/news-national/2015/02/09/jokowi-meets-migrant-workers-discusses-labour-issues#sthash.JRUMNs9V.dpuflastaccessedinJuly201624BruneiTimes,11December2015,“Bangladeshispleadguiltytowrongfuldetention”http://www.bt.com.bn/news-national/2015/12/11/bangladeshis-plead-guilty-wrongful-detention#sthash.qLxB33dU.dpbslastaccessedinJuly2016


beensenthomebytheBruneiauthorities.Thedefendantsadmittedthatdesperationtogettheirmoney

backledthemtocommittheoffence.

Inmanyinstances,thepromisedvisasareobtainedbutthemigrantworkerarrivesinBruneitofindthat

promisedsalarieswereimaginaryandtheyhadfallenforabaitandswitchscam.TheBangladeshDailyStar

reported25thestoryoftwomigrantworkerswhoreturnedfromBruneiempty-handed.

“WepaidTk4.5lakhto5lakh(US$6,350)eachforthevisaofagardeningjobinBruneitotheagencieswith

thepromiseofamonthlysalaryof$400equivalenttoTk30,540(US$387).

"However, we were given jobs of day labourers for only Brunei dollar 254, equivalent to Tk 14,288,”

(US$181)JewelRana,oneofthecheatedworkerstoldTheDailyStar.

Atfourphases,atotalof34BangladeshiswenttoBruneithroughtheseagencieslastFebruary.Ofthem,

atotalof30migrantshadtoreturnhomewhileonlyfourarestillinBrunei.Thecheatedworkershadto

workasdaylabourersinsteadofgardeningjobs.

“Wehadnoovertimealthough theagencies toldusat least twohoursofovertimewouldbeprovided.

Besides,wehadnoweeklyleave,”allegedJewelwhohailsfromFaridpur.

Several times, they approached their Brunei employer about their contractual rights but were denied

outright,hementioned.

TheworkersalsoapproachedtheBangladeshHighCommissioninBruneitoresolvetheirproblems.

Upontheembassy’sintervention,theBruneiemployeragreedtogivethemweeklyleavebutdeclinedto

increasetheirsalaries.

“Wehadtoworkfor15to16hoursdaily.Whenthecompanyrejectedourdemandforincreasedsalary,we

requestedthentosendusbackhomebuttheydeclinedtodothat,”saidRamzan,anotherreturneefrom

BruneihailingfromBrahmanbaria.

So,theworkersleftthejobfromApril5andrequestedtheHighCommissiontoarrangetheirrepatriation,

headded.

TheBangladeshmissionthenarrangedtheirairticketstosendthembackhome.“

ThestoriesfitwhatVeritécallsthe“hiringtrap”.AworkerseeksoutarecruitertohelpfindworkinBrunei.

Thelabourbrokerorrecruiterchargesforrecruitment,travel,andvisa.Thefeesareexorbitant-someare

legalandsomearenot.Theworkerborrowsmoney,acquiringdebt.Theworker travels toBrunei.The

workerispaidlessthanwhatwaspromised.Theworkerisforcedtoworklonghoursorreturnhomeand

faceadebtcollector.Theloansmeantheworkercannotescapetheconsequencesofcrushingdebt.

25StarOnlineReport,BangladeshDailyStarMay142015,“TwomigrantworkersreturnfromBruneiempty-handed”http://www.thedailystar.net/top-news/penniless-they-return-brunei-82268lastaccessedinJuly2016


BruneiEmploymentandMigrantWorkerTrends

Brunei’sGDPstoodatUS$16.7billionin2014.63.3%oftheGDPwascontributedbytheoilandgasindustry.

Crude oil, LNG andmethanol account for 94.5% of Brunei’s exports. Oil production has been steadily

declining.Itstoodat165,873barrelsperdayin2011anddeclinedto126,425barrelsperdayin2014.GDP

growthhasmirroredthedeclineinoilproduction.RealGDPgrowthstoodat3.7%in2011anddeclinedto

-2.3%in2014.ThedeclineinoilproductionandlowerglobaloilpriceshasimpactedGovernmentrevenue.

Brunei’sgovernmentcarriedasurplusofUS$1billioninthefirstquarterof2013onrevenueofUS$2.6

billion. Inthefirstquarterof2015,thegovernmentrecordedadeficitofUS$631milliononrevenueof

US$910million26.

WiththedeclineinGDPandrevenuethegovernmenthastakenstepstoreducethenumberofforeign

workers.Withinoneyear,fromJuly2014toJune2015,10,772foreignworkerquotasissuedtocompanies

thatwereunusedwerewithdrawn27.InMay2014,theActingCommissionerofLabourannouncedthatthe

Government was planning to have private sector employers pay levies of up to $960 (US$739) when

employingaforeignworker.Thelevyontheemploymentofforeignworkerswouldbeimposedonatotal

ofninetypositionsunder the fivebusinesssectors:wholesaleandretail trade (16posts), transport (28

posts), hotel and restaurant (34posts), support services (eight posts) and InformationCommunication

Technology (four posts). The amount of the levy would depend on the number of employees in the

companyandtheratioofforeignworkerstolocals28.

Afterthequotaswereremovedandforeignworkerleviesannounced,thegovernmentannouncedaspecial

permissionlicense29thatwouldsignificantlyreducethetimeitwouldtaketorecruitforeignworkersinthe

serviceindustry.Theseseeminglycontradictorypoliciesreflectthegovernment’sneed,ononehand,to

findemploymentforitsyouthandontheotherhand,tomeetitsobjectiveofdiversifyingBrunei’seconomy

andmakingitlessreliantontheoilandgassector.Inordertodiversifyitseconomy,itneedstoattract

foreignanddomesticinvestmentinnewexportindustriesandhavepoliciesthatencourageproductivity,

economicopenness30whichintheshorttermmeansmoreforeignworkers.

Irrespectiveofthedirectionthegovernmenttakes,theneedformigrantlowskilledanddomesticworkers

26Departmentofeconomicplanninganddevelopment,August27,2015,“BruneiDarussalamrecenteconomicperformance”27DanialNorjidi,BorneoBulletin,July31,2015“Quashedforeignquotasboostlocalemployment”http://borneobulletin.com.bn/quashed-foreign-quotas-boost-local-employment/lastaccessedinJuly201628SallyPiri,BruneiTimes,May292014,“Foreignworkerlevycangoupto$960”http://www.bt.com.bn/frontpage/2014/05/29/foreign-worker-levy-can-go-960#sthash.88BWS2pq.dpbs29SitiHajar,BorneoBulletinJanuary23,2015,“NewchangeinLabourpolicy”http://borneobulletin.com.bn/new-change-labour-policy/)lastaccessedinJuly201630WorldTradeOrganization,December19,2014,“TradePolicyReviewreportbyBruneiDarussalam”https://www.wto.org/english/tratop_e/tpr_e/g309_e.pdflastaccessedinJuly2016


isexpected to remain.YoungBruneians tend toprefergovernment jobsas theyareperceived tooffer

betterjobsecurity,highwagesandbenefits31.Privatesectoremployersstillprefertohireforeignworkers

astheyareregardedasmorereliableandmorecommittedthanmanyBruneians,whowouldleaveassoon

astheyfindagovernmentjob32.

AsanASEANmember,Bruneihasendorsedprogrammesthatpromoteorprotectmigrantworkerrights.

ThisbeganwiththeVientianeActionProgramin2004;andatthe12thASEANsummitinCebu,Philippines

in January 2007, the ASEAN Heads of State adopted the ASEAN Declaration on the Protection and

PromotionoftheRightsofMigrantWorkers.TheDeclarationmandatesASEANcountriestopromotefair

andappropriateemploymentprotection,paymentofwages,andadequateaccesstodecentworkingand

livingconditionsformigrantworkers.HavingadoptedthisDeclaration,ASEANisnowatthejunctureof

definingaregionalregulatoryframeworkformanagingmigration.AllASEANmembersarealsoboundas

signatoriesand/orstatepartiestotwolegallybindingtreaties–theConventionontheRightsoftheChild

(CRC)andtheConventionontheEliminationofAllFormsofDiscriminationAgainstWomen(CEDAW)6.

TherearechallengestobeovercomebeforeacomprehensiveagreementbyASEANmemberstatescanbe

madeastheorigincountriesaspireforalegallybindingregional“agreement”butothermostlydestination

countriesarebargainingfornon-legallybindingguidelines.Fundamentaldifferencesbecomeroadblocks,

likethedefinitionandscopeofmigrantworkers,whichhadresultedinfouryearsofdeadlock33.

Brunei also has bilateral discussions with countries of origin on improving migrant worker working

conditions,althoughtheydon’tseemtomakemuchprogress.AmeetingtodiscussaMemorandumof

Understanding (MOU) between Brunei Darussalam and the Republic of Indonesia pertaining to the

recruitmentofIndonesianworkerswasheldin2013inBruneiandafollow-upmeetingwasscheduledfor

November2015 in Indonesia34.At timeofwriting, therewasnoannouncementofanagreementbeing

signed.

While forced labour and human trafficking were seen as shared problems within ASEAN nations,

destinationcountriesareperceivedasreluctanttodiscusssuchmatters.Origincountriesthereforehave

totakeunilateralmeasurestocontinuetoimprovemechanismstoholdrecruitmentagenciesaccountable

31BorneoBulletin,January21,2015,“Weneedforeignersbuthireonlydeserving”http://borneobulletin.com.bn/need-foreigners-hire-deserving/lastaccessedinJuly201632Employersstillprefertohireforeignworkers,August18,2015http://www.bt.com.bn/news-national/2015/08/18/employers-still-prefer-hire-foreign-workers#sthash.rlkwqtrz.dpbslastaccessedinJuly201633SinapanSamydorai,ASEANCivilSocietyConference(ACSC)/ASEANPeople’sForum,March22,2014“IsASEANclosertolegalprotectionoftherightsofmigrantworkers?”http://aseanpeople.org/is-asean-closer-to-legal-protection-of-the-rights-of-migrant-workers/lastaccessedinJuly201634AmandaYap,AdlienaHKamaludinBrunei,BruneiTimes,October11,2015,“Indonesiatomeetonlabourcooperationnextmonth”http://www.bt.com.bn/news-national/2015/10/11/brunei-indonesia-meet-labour-cooperation-next-month#sthash.WTXW6AtO.dpuflastaccessedinJuly2016


fortheiractions35.Someoftheseunilateralactionshaveresultedinlowerdemandformigrantworkers

fromtheorigincountriesmakingchanges.

InthecaseofthePhilippines,thedecisiontoraisethemonthlyminimumwageforFilipinomigrantworkers

inBrunei to$520 (US$400)causeda23percentdecline in thedemandfordomesticworkers fromthe

Philippines.ThePhilippineSecretaryofLabourandEmploymenttoldreportersthatdespitethedeclining

demandforFilipinoworkersoverseas,theminimumwagewillremainatitscurrentrateinordertoprotect

workersagainstexploitation36.

WhilethegovernmentofBruneiistryingtoreducethenumberofmigrantworkers,itisexpectedthatthe

demandforlow-skilledanddomesticmigrantworkerswillremain.Thecurrentpushbythegovernment

andBruneiansisforhigherskilledjobs.Theredoesnotappeartobeanyattempttoreininpaymentof

recruitment feesbyworkersexcept throughongoingdiscussionswith thegovernmentof Indonesiaon

signingaMOU.

35GMANewsOnline,November19,2014,“ASEANnationscomparenotesonprotectingwomenmigrantworkers”http://www.gmanetwork.com/news/story/388870/news/pinoyabroad/asean-nations-compare-notes-on-protecting-women-migrant-workers#sthash.HhV6iGDm.tg1Ihbjy.dpuflastaccessedinJuly201636ZafirahZaili,BruneiTimes,August28,2015,“DemandforFilipinohelpersfallsduetominimumwage”http://m.bt.com.bn/news-national/2015/08/28/demand-filipino-helpers-falls-due-minimum-wage#sthash.MIMYsQLr.dpuflastaccessedinJuly2016


ConclusionsandRecommendations

Itappearsthe“hiringtrap”formigrantworkersinBruneiwillcontinueforsometime.Highmigrantworker

salaryexpectationscoupledwithhighrecruitmentfeesandhighdebtfollowedbylowactualsalaries in

destinationcountriescreatean impossiblesituationforthemigrantworker.Thebehavioural influences

thatestablishandreinforcethesituationareunchanged.Fortheemployer,worker-fundedrecruitment

feesmean lowercost,higherprofitsand increasedcompetitivenessandtheredonotappeartobeany

negativeconsequences.Fortherecruitingagencies,worker-fundedrecruitmentfeesmeanlowprices,and

amoreattractiveproductforemployers.Theyalsomeanhighersalesandprofitsandtheredonotappear

tobeanynegativeconsequences.FortheBruneigovernment,worker-fundedrecruitmentfeesmeanlower

costsforbusinessesandagain,theredonotappeartobeanynegativeconsequences.Themigrantworker

whosufferstheconsequenceshasnovoiceorabilitytoenablechange.Itisnotsurprising,therefore,that

thegovernmentdoesnotsetanexpectationthatrecruitmentagencyandemployersshouldstopworker-

fundedrecruitmentfees.

Thepushforremovingworker-fundedrecruitmentfeesinBruneilieswiththeGovernmentofBrunei’slong

termgoalforthecountryasspeltoutinWawasanBrunei2035(BruneiVision2035).Thelongtermgoalis

toturnBruneiDarussalamintoanationwidelyrecognized37for:

• “the accomplishments of its well-educated and highly-skilled people as measured by the

highestinternationalstandard;

• qualityoflifethatisamongthetop10nationsintheworld;and

• dynamic and sustainable economywith income per capita within the top countries in the

world.”

Oneofeightapproachesidentifiedtomeetthisgoalis:

“Aneconomicstrategythatwillcreatenewemploymentforthepeopleandexpandbusinessopportunities

withinBruneithroughthepromotionofinvestment,foreignanddomestic,bothindownstreamindustries

aswellasineconomicclustersbeyondtheoilandgasindustry”.

Athreattothisstrategyofattractingforeigninvestmentwouldbeanegativereputation.Allegationsof

forced labour and human trafficking can present serious threats to brand value and the country’s

reputation. InBrunei, recruitersandrecruitmentagencieschargemigrantworkers feesfor recruitment

servicesthat induce indebtedness. Theneedtorepaythedebtmakesmigrantworkersvulnerableand

oftendrivesthemtoacceptdifficultorexploitativeworkingconditions.Companiesdonotwanttobeseen

toinvestincountriesthathavedubiouslabourandhumantraffickingrecords.Protectingmigrantworkers

37BRUNEIVISION2035-WAWASAN2035,TheEmbassyofBruneiDarussalamtotheUnitedStates.http://www.bruneiembassy.org/brunei-vision-2035.htmllastaccessedinJuly2016


isnotjustaboutforeignindividualsandtheirgoals.Migrantworkersareindispensabletothefunctioning

oftheBruneieconomy.Whilesomeworkhasbeendonetoprotectmigrantworkersandimproveworking

conditions,morehastobedonebyemployersandthegovernment,inparticular,tostopthechargingof

workerrecruitmentfeestoworkersandbreakthisperfidiousbusiness.

Brunei’ssmallsizeoffersthecountrythepossibilityofmovingtotheUSTraffickingVictimsProtectionAct

(TVPA) Tier 1 from its current Tier 2 ranking with less resources and effort than it would take larger

destinationcountriestodoso.Forexample,ninety-twopercentofitsexportsaregeneratedbyjusttwo

employers rather than the hundreds or thousands of companies in larger countries. It is easier to

implement change in two companies than in hundreds or thousands of companies. The following are

recommendations to stopworker- funded recruitment fees. They are not comprehensive but they do

require commitment fromkeyemployers, theGovernmentofBrunei andmajormigrantworkerorigin

countries. They start by setting new expectations of government, employer and recruitment agency

behaviourwithregardtomigrantworkerrecruitmentfeesandrights.Therecommend-ationsstartwith

theonesforthosewiththemostresourcesinthecountrytomakechangesandforthosewhowillbenefit

mostfromthechanges.

Employers

Companiesandemployershaveapivotalroletoplayinthefightagainsthumantrafficking,inBrunei.They

arewell-placedatanumberoflevelstoprovideeffectiveandsustainedaction:forexample,(1)intheir

ownoperations;(2)inthecommunitieswheretheydobusiness;(3)alongsidetheirsuppliersandbusiness

partners38.Inrecentyears,manyobservershavenotedthatbusinessengagementisanessentialaspectof

global anti-trafficking campaigns, and this extends to tackling unethical recruitment in supply chains.

Principlesstatethatcompaniesshouldadheretointernationalstandardsonhumanrightsincountriesin

whichnational law isnot in compliancewith these standards,meaning that companies shouldprohibit

recruitmentpracticesandfeesthatviolateinternationalstandardsacrosstheirsupplychains3.

Thedrivetoendthechargingofrecruitmentfeesformigrantworkerstotheworkersthemselvesshould

be ledby the two largest privateoil and gas companies inBrunei. Together, they account forover 92

percentofexportsandhavethehighestnumberofemployees,contractors,sub-contractors,andvendors.

They both have international shareholders from whom they are likely to face new expectations that

recruitment and employment conditions in the production of their goods complywith internationally-

agreed human and labour rights standards. The following recommendations for these companies are

38AbolishingSlaveryandItsContemporaryForms.2002.Weissbrodt,DavidandAntislaveryInternational.OfficeoftheUnitedNationsHighCommissionerforHumanRights.http://www.ohchr.org/Documents/Publications/slaveryen.pdflastaccessedinJuly2016


adaptedfrom“AnEthicalFrameworkforCross-BorderLaborRecruitment39”,byVeritéandManpower

Group.

• The companies shouldhave aCodeofConduct committing to theprotectionofworkers in all

phasesoftheiroperations,andrecognizedistinctchallengesandresponsibilitiesrelatedtocross-

borderrecruitment.

• The Code references and reflects the principles elaborated in key international agreements

including:theUNUniversalDeclarationonHumanRights,UNHRCGuidingPrinciplesforBusiness

andHumanRights,andILOConventionsonCoreLabourStandardsincludingILOConvention95of

1949,theProtectionofWagesConvention,whichprohibitsalldeductionsfromworkers’wages

intendedtodirectlyorindirectlyobtainorretainworkers’employment.

• ThescopeoftheCodeshouldincludethecompanies’globaloperatingunits,globalsubsidiaries,

andfullglobalsupplyandrecruitmentchains.

• The Code should be supported by an institutional structure and written procedures for

enforcement,monitoringandreporting,includingappropriatemeasuresrelatedtocross-border

movementofrecruits.Inparticular,theprinciplesintheCodeshouldbe:

• communicated to all employees, partners, vendors, contractors, clients (employers,

jobseekersandworkers)and

• externalstakeholders,

• includedinemploymentcontractsatalllevels,and

• includedinbusinesscontractsatall levels.TheCodeand/oritssupportingdocumentation

should provide for corrective actions for non-compliance, establish sanctions where

appropriate, and adopt standards and timelines for continuous improvement to bring

agenciesintocompletecompliance.

• TheCodeshouldestablishgrievancechannelsandmechanismsforcross-borderrecruits,including

hotlinesandconfidentialreporting,inallcountrieswheretheCompanysourcesorplacesrecruited

workers. It creates documented procedures for investigation, reporting, mitigation, and

remediationofviolations,includingprotectionforwhistleblowers

• ThecompaniesshouldhaveamechanismforregularassessmentofCodecompliance including

reportingtoExecutiveManagement.

39VeritéandManpowerGroup.2012,“AnEthicalFrameworkforCross-BorderLaborRecruitment:AnIndustry/StakeholderCollaborationtoReducetheRisksofForcedlaborandHumanTrafficking”http://www.verite.org/sites/default/files/ethical_framework_paper_20120209_PRINTED.pdflastaccessedinJuly2016


TheGovernmentofBrunei,ThePhilippines,IndonesiaandBangladesh

Bruneibenefitsfromhavingasmallernumberofmigrantworkerswhencomparedtootherdestination

countriesintheregioneventhoughthenumberofmigrantworkersconstitutesalargerproportionofits

employedworkforce.Thecombinationofthetwoestablishedfactsmeansthatitmaybeeasiertomake

significantchangestoBrunei’smigrantlabourpracticesthaninmoreheavilypopulatedcountries.Thevast

majorityofthepopulationliveintheBrunei-Muaradistrict,wherethecapitalofBruneiissited,whichalso

makesexecutingchangeseasier.TheGovernmenthastakensomekeystepstoprotectmigrantworker

rightssuchashavingmigrantworkersbebriefedbyaDepartmentofLabourofficeronthecontentsoftheir

contractandhavingthemsignthecontractintheofficer’spresence.OtherkeyactionstheGovernment

mightconsiderare:

1. RatificationofUNandILOinstrumentsthatgovernrecruitmentandtreatmentofmigrantlabour

2. Nationallaw,regulationanddataanalysis

3. Reviewofhowworkerscanobtainaccesstojusticeinpractice.

RatificationofUNandILOtreatiesthatgovernrecruitmentandtreatmentofmigrantlabour

BruneishouldconsiderratifyingtheILONo.181,knownasthePrivateEmploymentAgenciesConvention,

which will assist with establishing international standards for the regulation of private employment

agencies to ensure fair recruitment practices, and prevent human trafficking and other forms of

exploitation.Thisconventionestablishes,inArticle7,that“Privateemploymentagenciesshallnotcharge

directlyorindirectly,inwholeorinpart,anyfeesorcoststoworkers.”Inaddition,Article8statesthat“A

Membershall,afterconsultingthemostrepresentativeorganizationsofemployersandworkers,adoptall

necessaryandappropriatemeasures,bothwithinitsjurisdictionand,whereappropriate,incollaboration

with other Members, to provide adequate engage in fraudulent practices and abuses.” While the

Conventionisapositiveadvanceandcouldgoalongwayinpreventingdebtbondagelinkedtorecruitment

fees,BruneishouldconsiderratifyingILOConvention189of2012onDomesticWorkerswhichrequires

that signatories ensure that private employment agencies do notmakedeductions from thewages of

domestic workers. Brunei should also consider ratifying ILO Convention 95 of 1949, the Protection of

WagesConvention,whichprohibitsalldeductionsfromworkers’wagesintendedtodirectlyorindirectly

obtainorretainworkers’employment.

ThecompletionofthenegotiationofanMOUbetweenIndonesiaandBruneishouldbeexpedited.The

GovernmentsofIndonesiaandBruneishouldmakethedraftingprocessoftheMOUopenandparticipatory

by involving civil society organizations andmigrant domesticworkers6. Brunei should consider aMOU

betweenBruneiandtwootherorigincountriesformigrantlabour,thePhilippinesandBangladesh.The

MOUshouldincludeagreementstoinvestigateandprosecutethefullchainoftrafficking,agreementsor


arrangementstoconductjointproactiveoperations,investigations,andprosecutionsandopenchannels

ofcommunicationandadatabasetoidentifyRecruitmentagenciesthatarepartofatrafficking-in-persons

network.

Privateemploymentagenciesshouldbeobligedtoprovidemigrantswithinformationontheprocedures

forfilingcomplaintsaspartofthepre-departuretraininginorigincountries.Inaddition,theDepartment

of Labour should provide this information as part of orientation training during the contract signing

process3.

Nationallaw,regulationandinstitutionalmechanisms

Bruneishouldconsiderenactinglawsandregulationsthatrequire:

NoFeesforWorkers6

• Workersmayincursomecostsassociatedwiththeireligibilityforthejob(e.g.,trainingcourses)or

for items thatwill become their personal property (e.g., identity documents such as passports).

However,anycostsassociatedwiththeirrecruitmentoncetheyhavebeenformallyhiredaretobe

bornebytheemployer.

• Onceaworkerhasbeenhired,theagencymustnotchargeanyfees;all feesassociatedwiththe

worker’srecruitmentanddeploymentaretobebornebyemployers

• Theagencymustnotrequireworkerstopostabond,incashorinkind,forreimbursementatthe

endoftheworker’scontract

• Workersshouldbeinformedoftheirrighttorecruitmentwithoutfees

Transparencyinhiringprocess6

• Recruitmentagenciesmustprovideaccuratedetails,inwriting,onthenature,scope,andconditions

ofworkforeveryemployeehired

• Employmentcontractmustbeprovidedinalanguagetheworkercanunderstand,andtheworker

mustbeprovidedwithahardcopyofthesignedcontract

• Ifchangesarerequiredforthetermsofthecontract,theemployeemustbeinformedandgiventhe

opportunitytoconsenttoordeclinethechangeswithoutpenaltyorthreatofpenalty

DataAnalysis

Brunei parties should conduct and support quantitative and qualitative research, data collection and

analysis to identify theproblemsandneeds facedbymigrantworkers ineveryphaseof themigration

processinordertopromotetherightsofmigrantworkersandformulaterelevantpolicies.


Accesstojustice

Migrantworkersshouldhaveeasyproceduralaccesstoafairhearingandreceiveafairandjustremedyif

theirrightshavebeenviolated.Protectionofrightsmustcontinuethroughallstagesofthelegalprocess,

fromreportingacrimetotheauthoritiestofollowingtheorderofaremedybytheDepartmentofLabour

or court to make certain that it is enforced. Migrant workers are often fired by employers for filing

complaintswithGovernmentofficialsorexternaladvocacygroupslikeNGOs.Terminationofemployment

results in theendingof theemploymentpass,which is thebasis in lawfor themigrant right tostay in

Brunei.Filingacomplaintpromptsactionbytheemployerthatmakesthemigrantcomplainantsubjectto

immediatedeportation.Thisistheriskthatforeignworkerswillnormallyhavetofaceandthatdetersthem

from lodging a formal complaint against their employerswhich should be addressed. The government

should consider allowingmigrantworkers to change employers in Brunei whichwill help remove this

deterrencetoseekingredressforgrievances.

Accesstojusticedependsonthemigrantworker’sconfidenceinthejusticesystem.Keyelements40the

governmentshouldconsidertoprotectmigrantworkerrightsare:

• Legalawareness

AremigrantworkersfamiliarwiththeBruneiLabourCourtprocess,lawsetc.?Dotheyknowwhat

evidence they need to keep to support their claims? Can they easily obtain copies of their

recruitmentagreement,employmentcontract,insurancecard,andotherdocumentsneededto

pursueclaimsforredress,andeliminateopportunitiesforcorruptionorobstructionbyrecruiters,

brokersorinsurers?

• Legalaidandcounsel

Aremigrantworkersgivenlegalaidandcounseltohelpthempresenttheirclaim?

• Adjudication

Istheprocessopenandfair?Aresomelawsthatimpactmigrantworkersenforcedwhilelawsthat

impactemployersarenot?

• Enforcement

Isenforcementofremediesundertaken?Remediesareuselessiftheyarenotenforced.Ensure

adequateauthoritytoenforcejudgments,andimprovetheefficiencyofcourtadministrationand

management.Considertheneedforsufficientauthorityfor judges,AssistantCommissionersof

Labourandenforcementagents toenforce judgments, includingauthorities for issuing interim

orderstofreezeassets

40UnitedStatesInstituteofPeace,“NecessaryCondition:AccesstoJustice”http://www.usip.org/guiding-principles-stabilization-and-reconstruction-the-web-version/7-rule-law/access-justice


• Civilsocietyoversight

AretheDepartmentofLabour’sprocessestransparent;arestatisticsmadeavailabletothepublic?

Arecasesandtheirresolutionrecordedtopromoteconsistencyofdecisionsandtoprovideabasis

forappealtotheCommonLawsystem?

The above recommendations are by nomeans comprehensive but they should create awareness and

acceptanceofresponsibilitybyemployersforhowtheirgoodsandservicesaremadeanddelivered.Inthe

realmofworkerprotections,theseeffortstakeaccountnotonlyofworkingconditionsinworksites,but

alsooftherecruitmentandhiringpracticesthatprecedetheemploymentofworkers.Theleadershipof

Brunei Darussalam in this area will speed up the implementation of the ASEAN Regional Framework

Instrumentwhichwouldcreateanenvironmentwheretherightsofworkersareenforced,lawsandpolicies

areharmonizedwithcore international labourstandards,andsocial justiceassured forallworkersand

theirfamilies.Employers,governmentsandotherswithaninterest inpreventinghumantraffickingand

slaverywillrecognizethevulnerabilityofmigrantworkerstoworker-fundedrecruitment-feeforcedlabour

andseektodetectandremediatethehiringabusesthatcreatethisvulnerability.

Thegreatmajorityofmigrantworkerspaylargesumsofmoneyinorder

to obtain jobs in other countries. The costs, often exorbitant, leave

workers debt-ridden and in a more vulnerable position to pernicious

labourabuse. AtTWC2,werecognisetheconsequencesofrecruitment

costsandtheurgentneedtoeliminatesuchfees.

This report ispartofa seriesofpapersanalysing thepolicies invarious

countries regulating recruitmentcosts.Through thisevaluativeprocess,

we hope to be able formulate effective policy recommendations in

reducing the recruitment costs of workers who come to Singapore.

–

TransientWorkersCountToowww.twc2.org.sg5001BeachRoad,#09-86GoldenMileComplexSingapore199588

[email protected]

ThefulllistofourcountrybriefsandotherTWC2reportscanbefoundat:http://twc2.org.sg/category/articles/research/

TWC2RecruitmentCostsResearchWorkingGroup