In addition to providing immediate income support for workers, the wage assurance also includes a commitment
to negotiate an enforceable agreement to support stronger social protections for workers related to
unemployment and severance bene ts, in line with the relevant ILO conventions, through the establishment of a
Severance Guarantee Fund (SGF).
Workers who did not receive severance and were employed in the supply chain of a signatory brand or employer
can le a claim. The SGF will take up claims from workers whose employer can't be compelled to pay and cases
where national legislation falls short of the international standard. It will also provide nancial support to improve
social protection systems at the national level, and set up dedicated accounts for this purpose which can be
accessed by national committees including government, employers, unions, and civil society representatives. As
social protection systems improve, the brand premiums will be reduced accordingly.
The Severance Guarantee Fund therefore will mitigate the devastating consequences of unemployment for
workers in the future by nancially supplementing or strengthening government social protection programmes for
unemployment or severance bene ts. Brands and retailers would contribute to both funding streams through a
fee based on volume sourced from each country, and employer fees would be a percentage of their wage bill in
each country. This should be part of a larger effort to establish more sustainable and resilient industries in the
near future, consisting of supply chains with better planning and pricing models, which includes a costing model
that covers fair payment schedules, and nancial space for living wages, safe factories, and social bene ts.