Noida crackdown: Action against 203 contractors over labour law violations

Authorities in Noida initiated action against 203 contractors for labour law violations after unrest, moving to cancel licences, recover ₹1.16 crore in dues, and enforce a 21% wage hike while warning of strict penalties for non-compliance across factories

Noida: Days after a violent workers’ protest in Noida, the Gautam Buddh Nagar district administration on Friday initiated action to cancel licences of 203 contractors and blacklist firms across 24 factories for alleged violations of labour laws, officials said.

The labour department has also directed the contractors to pay Rs 1.16 crore as dues to workers.
Additional Labour Commissioner Rakesh Dwivedi said notices have been issued to contractors accused of depriving workers of statutory benefits, directing them to clear pending payments.
“Action is being taken to cancel licences, recover dues and blacklist firms of 203 contractors found violating labour laws. The remaining contractors are also being identified, and strict action will follow,” they said.

---

Dwivedi added that the role of certain contractors whose workers were allegedly involved in vandalism during recent labour unrest is also under scrutiny. The action follows labour tensions in Gautam Buddh Nagar over wage hike demands, after which a government-appointed high-level committee recommended a revision in wages.

Accordingly, a 21 per cent wage hike has been implemented for workers engaged in 74 scheduled employments in Gautam Buddh Nagar and neighbouring Ghaziabad districts. The revised wages have come into effect from April 1, and payments based on the new rates are to be made between May 7 and May 10, the officials said.

The increased wages will apply to both contract and permanent workers. Authorities have clarified that no deductions other than Employees’ Provident Fund (EPF) and Employees’ State Insurance (ESI) will be permitted from wages, and any violations will invite strict action under labour laws.
The officials also said workers are entitled to overtime at double the standard rate, along with bonuses and gratuity benefits.

In cases of delayed or underpayment, recovery proceedings will be initiated against contractors, and their licences may be cancelled with firms being blacklisted. The principal employer will also be held accountable in such instances, the officials added. They said prosecution will be initiated in court against those found violating payment norms.