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No contracts, no rights: How the fashion industry is cheating its workers on minimum wages

Most workers in Pakistani garment factories are scammed for their rightful wages: The vast majority do not receive written contracts, payroll or wages that would allow them to feed their families. In addition, factories in Pakistan often employ only a small proportion of workers directly. Many workers are hired through third parties who act as intermediaries between the textile factories and the workers. Often these workers do not even nominally receive the statutory minimum wage and are not registered in the social security system.

As one of the first of its kind, the German Supply Chain Due Diligence Act (LkSG) entered into force on 1 January 2023. This law obliges companies to protect the human rights of workers in their value chains. These rights also include the payment of a reasonable wage, i.e. at least the national minimum wage of the respective country. In order to assess how companies covered by the new German law implement their due diligence obligations, the German human rights organisations ECCHR and FEMNET commissioned a survey of workers in Pakistan.

Scope: 14 pages

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