The Swedish furniture maker said it initiated an investigation following claims that Nepali security guards had to fork out US$1,000 (RM4,400) to obtain the job, according to the Financial Times newspaper in London.

The investigation was led by Inter Ikea, which oversees the brand’s franchise stores, and Ikano Retail, which runs Ikea stores in Malaysia.

Ikano said the inquiry confirmed “many of the security guards working in our Malaysia business had paid recruitment fees”, contravening its code of conduct rules, the FT report said.

“Multiple layers of subagents were involved in the process in rural villages,” the report read.

Ikano subsequently decided to terminate its relationship with the security guard provider after it was unable to resolve its concerns and the incident had been reported to local authorities and the Nepalese embassy.

The group has since secured a new supplier that will recruit workers directly rather than using subcontractors, the FT reported.