Reduced demand from brands and cancelled orders have led to a rise in wage theft, reduced hours and violations of workers’ employment and pay rights, says a new study by the University of Sheffield and the Worker Rights Consortium.

Based on a survey of 1,140 workers from 302 factories in India, Honduras, Ethiopia and Myanmar the report reveals, almost 80 per cent workers had not received full severance pay while the pay and working conditions of over a third of workers had deteriorated. Around 68 per cent of workers had been employed without a formal contract, reports Business of Fashion. More than one third workers reported experiencing verbal abuse, threats or intimidation, while 22 per cent reported unfair reduction or withholding of wages. Around 39 per cent said they were forced to work without adequate COVID-safe measures such as PPE and social distancing.

The study further shows, number of workers with no personal savings have increased in all four countries compared to pre-pandemic levels, and their average household debt levels have increased by 16 per cent.