In recent months, Italy has been confronted with a serious and escalating phenomenon of labour exploitation attributable to caporalato (unlawful labour intermediation), which has emerged within the fashion and luxury goods supply chain. In particular, the reported cases concern production subcontracting arrangements involving workshops and small manufacturing units linked to major fashion brands, where workers have been employed under conditions of severe contractual and wage irregularities and, in many instances, in violation of fundamental human rights and applicable national collective bargaining agreements (Contratti Collettivi Nazionali di Lavoro – CCNL).
Judicial Authorities have required several luxury fashion companies to produce documentation relating to their organisational and management models, as well as internal audits or audits commissioned from external consultants, for the purpose of assessing the adequacy of internal supply-chain control systems and the nature of the legal and commercial relationships between lead companies and their subcontractors. Such requests are aimed at identifying potential negligence or, in the most serious cases, complicity in unlawful labour practices.
The alleged cases of caporalato reportedly involve primarily the employment of workers of Chinese nationality in so-called “workshop-dormitory” facilities, in which systemic violations of regulations concerning hygiene, occupational health and safety, remuneration, payroll documentation, and working time are alleged to constitute an established modus operandi.
These developments have triggered significant public and institutional debate in Italy. On the one hand, public institutions and industry associations have stressed the need to safeguard the reputation of the “Made in Italy” label—widely recognised as a hallmark of quality, tradition, and craftsmanship—from practices capable of undermining its credibility. On the other hand, trade unions, civil society organisations, and workers’ rights movements have strongly criticised the political and regulatory management of the issue.
The proposed anti-caporalato certification
In response to these concerns, the Italian Government has introduced, within the draft Small and Medium-Sized Enterprises Bill (Disegno di Legge sulle PMI), a new measure providing for the establishment of a voluntary supply-chain compliance certification. The purpose of this instrument is to certify compliance with labour legislation and to prevent and combat labour exploitation in contractual relationships with suppliers and subcontractors.
Under the proposed framework, fashion companies applying for the certification must demonstrate, through appropriate documentation, that their contractual arrangements and commercial relationships with suppliers comply with applicable labour, occupational safety, and social security legislation. At present, the certification scheme is voluntary in nature and does not предусматри mandatory inspections or structured independent third-party audits, unlike many product or process certification schemes.
The stated objective of the certification is to identify compliant supply chains, reward virtuous undertakings, eliminate anomalies and critical issues within the supply chain, and provide assurances to the market regarding regulatory compliance and respect for human rights.
The proposal has attracted substantial criticism from political actors and trade unions. According to several labour organisations, the certification risks being reduced to a purely formal or “facade” label in the absence of effective monitoring and verification mechanisms. Such shortcomings, critics argue, may weaken the legal accountability of lead companies and result in a form of de facto de-responsibilisation, including from a criminal law perspective, where violations by subcontractors or third-party manufacturers are subsequently identified.
Furthermore, critics contend that the absence of external oversight, periodic inspections, or binding obligations may significantly undermine the effectiveness of the certification and fail to produce tangible improvements in working conditions at the lower tiers of the supply chain, where labour exploitation is most prevalent and severe.
Conversely, proponents of the measure—including certain industry associations such as Confindustria Moda—maintain that the certification constitutes an initial step toward enhanced supply-chain transparency in a sector of international relevance and strategic importance to the Italian economy, and that it may assist companies in evidencing their commitment to preventing unlawful labour practices.
In any event, the effectiveness of the proposed certification will depend upon its future legislative development. In particular, should the scheme remain voluntary and lacking robust, independent oversight mechanisms, there is widespread concern that it may prove insufficient to ensure effective social sustainability.
The debate surrounding caporalato in the Italian fashion industry exposes a fundamental tension: the global celebration of luxury products associated with craftsmanship and quality on the one hand, and, on the other, documented instances of labour exploitation highlighting the need for more stringent regulatory frameworks and effective supply-chain enforcement. While the proposed anti-caporalato certification may represent a potentially useful instrument, its effectiveness will ultimately depend on stronger commitments to oversight, transparency, and corporate social responsibility.
Authors:
Camilla Gentile – Close to ius
Isabella Carantani – Close to ius
