Workers in Iran who returned to factories after a temporary ceasefire are now going unpaid for two months, with labour representatives warning that economic resilience may not last beyond the summer. According to Akbar Shovkat, executive secretary of the Workers’ House in Qom province, the majority of Iran’s labour force already lives below the poverty line due to years of wage suppression, and the accumulation of unpaid wages from June and July is pushing households to the brink. He told Iranian media that without a change in conditions—whether through special economic measures or other interventions—the country is likely to face significant labour unrest by the end of the season. Some employers, he noted, have resumed operations at half capacity or rehired former staff, yet are unable to meet payroll because of disrupted supply chains and import-export bottlenecks linked to the wider military and sanctions environment.

In Indonesia, police and government officials have publicly acknowledged that layoffs are difficult to avoid amid global economic headwinds, but they insist that employers must still honour severance and other entitlements. Brigadier General Muhammad Irhamni, head of the labour desk at the national police’s criminal investigation unit, stated that the desk will oversee the fulfilment of workers’ rights and mediate industrial disputes. Deputy Manpower Minister Afriansyah Noor added that the government has prepared reskilling programmes for up to 50,000 people in 2026, while emphasising that companies would not resort to dismissals unless genuinely compelled. The Indonesian approach frames layoffs as a last resort, with the state positioning itself as a guarantor of legal compliance rather than a direct intervenor in employment levels.

Viewed from Washington, the legal architecture protecting workers from the downstream effects of debt offers only partial cover. Under US federal law, an employer cannot fire a worker because of a single wage garnishment order, but that protection disappears if multiple garnishments are in place for separate debts. Creditors, meanwhile, can often renew court judgments before they expire, extending collection efforts for years. In India, the new labour codes introduce a more time-sensitive obligation: wages owed upon resignation, dismissal, or retrenchment must be paid within two working days. However, analysts in New Delhi note that the full and final settlement often includes components such as leave encashment, gratuity, and reimbursements that follow separate statutory timelines, meaning the two-day rule applies primarily to the wage portion and does not guarantee immediate closure of all dues.

Iranian economist Albert Boghazian, speaking to domestic media, argued that in a war-adjacent economy characterised by aerial threats and sanctions, talk of economic growth is misplaced; the priority should be price stability and direct support for low-income households. He observed that while no acute shortages of basic goods are visible on shop shelves, purchasing power has fallen sharply, and the government must intensify market oversight to curb hoarding and opportunistic price hikes. The Iranian state, he suggested, had anticipated the supply challenge by pre-arranging imports and raw materials, but the main pressure point remains household budgets. Across these jurisdictions, the coming months are expected to test the adequacy of existing legal safeguards and social safety nets as firms and workers navigate an environment of constrained demand and disrupted trade.