Contract labour in the garment and textile sector of Tamil Nadu, India, is widespread and involves risks for both workers and companies. According to the sector expert interviewed, about half of the workforce in many garment factories consists of contract workers, especially in small and medium-sized factories that rely on fluctuating orders from international brands.
Contract workers often face job insecurity, lack of social security and exploitation. They usually do not receive employment contracts and have limited access to grievance mechanisms. For manufacturers, contract labour offers flexibility, but often also leads to compliance issues and risks of reputational damage.
International buyers should be aware of the risks of contract labour and take steps to address these risks. Recommendations include improving procurement practices, promoting transparency in the supply chain, supporting suppliers to employ more workers on a permanent basis and improving labour recruitment practices and working conditions for all workers, including contract workers.
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