Decent Work and Economic Growth


Sime Darby Plantation (SDP) recognises that ensuring decent work for all workers means providing equal and fair opportunities for employment, social protection, respecting rights at work and providing the platform for workers' voice and social dialogue. We respect the rights of workers by providing a platform for social dialogue and workers’ voices to be heard.

Eradicating Exploitation

We recognise that the recruitment practices relating to foreign workers may be vulnerable to the risks and associated with modern-day slavery and exploitation. We are therefore committed to enhancing the migration experience of our foreign workers through Responsible Recruitment practices.

Challenges faced by migrant workers in Malaysia are not unique to the palm oil sector and have varying levels of complexities depending on the workers' countries of origin. We engage with a wide range of stakeholders in an effort to advocate for policy reform that benefits the workforce and is better for society.

We practice direct hiring methods in our operations to ensure we have better oversight and management. In Malaysia, where we hire foreign workers, our dedicated Workforce Management Teams visit countries of origin to promote recruitment efforts, conducts interviews and selection of workers.

Our Responsible Recruitment practice include:
  • No Recruitment fees – we do not charge workers for employment, and are working with our stakeholders to understand procedures, mapping migration routes and identifying supply chain players to ensure the practice comes to a stop on our plantations.

  • No retention of documents – workers passports are not withheld by the management. Should they want us to keep their passports, workers must adopt an informed consent procedure.

  • No contract substitution – We ensure clear and concise communication on employment terms and conditions of work pre and post workers' departure from their country of origin. Contracts are translated with copies provided to workers.


Ensuring Favourable Working Conditions

We endeavour to provide decent working and living conditions to spur the social advancement of the communities where we operate. In all our operations, we remain steadfast in our goal to create a productive labour force by delivering fair income within reasonable working conditions. For our operations that are located in challenging and developing areas, living arrangements and access to basic needs are also provided and are considered central to the well-being of our people.
Decent wages

We ensure workers are paid minimum statutory wages. Workers are also provided with other in-kind benefits that make up the proportion of their wages. Depending on the location, this amount may vary, but the ratio remains similar. Work in the plantations typically comprises of harvesting, fruit picking and general upkeep work which include amongst others, spraying and weeding. Workers are either paid daily or by piece rate. Piece rate workers' prices are productivity based and have volume targets. Harvesting groups are further incentivised through premiums paid on additional fruits that are collected or harvested.
Working conditions

We provide adequate working and living conditions to spur the social advancement of the communities where we operate. Workers are furnished with basic housing and have access to basic needs, which are considered central to the well-being of our people. Sime Darby Plantation firmly believes that good working conditions help promote decent work and a productive workforce.
Freedom of Association

We respect the rights of our employees to join and form organisations of their own choice and to bargain collectively. Depending on the locations we operate in, we ensure workers are aware of and understand their freedom to choose to be part of unions. We also encourage them to voice their concerns and ensure collective agreements reflect their concerns. In localities where formal unions do not exist, we encourage the formation of joint consultative councils and other similar platforms for workers to raise their concerns and safeguard their rights. For us, it is crucial that our workers, including those who are not union members (approximately 30% of the workforce) to have access to proper channels to air their grievances.​

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