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Apparel brands pressured to address severance ‘wage theft’ in factories: reports

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The same review also said Outerstuff had a responsibility under the university licensing standards to “ensure that the factory complied with Salvadoran law, including the payment to workers of their legally due compensation at the time their employment ended.”

Outerstuff initially denied responsibility over the claim, even arguing that Style Avenue was no longer its supplier when it shuttered in May 2023.

In a statement to The Guardian, however, Outerstuff said it is working on a plan to pay nearly $1 million to the workers of the shuttered factory.

“At this time, despite our strong feeling that we have met all licence requirements, Outerstuff is nonetheless working on a structured plan that will provide nearly $1m in finances to the workers as soon as possible,” the company told The Guardian in a statement.

It also maintained that it takes worker rights “very seriously,” and is managing a structured and global compliance programme that requires a code of conduct for all its suppliers.

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