Labour Behind the Label highlights scale of UK worker exploitation, calls for stronger enforcement

Labour Behind the Label has warned that widespread labour exploitation persists across the UK’s fashion supply chains, despite planned reforms aimed at improving worker protections. In a new briefing, the organisation outlines the scale of non-compliance in the UK labour market, particularly in fast fashion production.

Citing research from Resolution Foundation, the report highlights that 32 percent of low-paid workers are underpaid, while 900,000 workers miss out on paid holiday entitlements. A further 1.8 million workers do not receive payslips, limiting their ability to verify wages, and one in five workers report workplace discrimination.

The report argues that exploitation is driven by systemic issues, including insecure employment, subcontracting, and weak enforcement. Workers in sectors such as garment manufacturing face heightened risks, particularly migrants and those on precarious contracts, who may be reluctant to report abuses due to fear of retaliation or immigration consequences.

Labour Behind the Label welcomes the introduction of the UK’s planned Fair Work Agency, launching today, which will consolidate enforcement functions currently spread across multiple bodies. The agency is expected to introduce stronger inspection powers, recover unpaid wages, and provide a single access point for workers seeking support.

However, the organisation warns that the agency’s effectiveness will depend on sufficient funding, stronger collaboration with trade unions and local stakeholders, and a more proactive enforcement approach. It also calls for a separation between labour enforcement and immigration control to encourage reporting of abuses.

Beyond enforcement, the report highlights a “brand accountability gap,” arguing that fast-fashion business models, characterised by low prices and tight production timelines, continue to drive illegal labour practices within supply chains. To address this, Labour Behind the Label is calling for mandatory human rights and environmental due diligence legislation, requiring companies to take legal responsibility for conditions across their supply chains.