Retaining the passports by the sponsor is not to be labelled as "Confiscation" rather it is to be under "safe control" by the HR dept., In practical, many of the company's still practice holding passports of not only labors but staff also.
Expatriates are the cause for this, they run away from the sponsor due to some reason, when you report to CID, you need to surrender expats PP also, this is why most of them collect PP from employees. In no way it should hurt an expat as long as he is under sponsor's magic stick.

Money says " Earn me "
Calendar says " Turn me "
Time says " Plan me "
Future says " Win me "
Beauty says " Love me "
But, GOD simple says " Remember me "