Noida Workers' Protest: Labour Dept Issues Notice To 203 Contractors For Wage Violation

In the wake of the workers’ protest in Noida, the labour department has issued notices to 203 contractors in the state for alleged violations of labour laws. The proceedings could include cancellation of licenses for these contractors, along with recovery of dues. They could also be blacklisted for violating labour laws.

As part of the proceedings, the department has directed the contractors to pay over Rs 1.16 crore to the workers as dues of their statutory benefits. While 203 contractors have been issued notices, the remaining are also being scrutinised for labour law violations, and strict action will be taken if they are found violating the labour law, reported PTI, citing officials.

Additional Labour Commissioner Rakesh Dwivedi said that action is being taken against the contractors who are depriving workers of statutory benefits. In case of delayed payment or less than stipulated payment, the principal employers will also be held responsible, and prosecution would be filed in court against violators if required.

The contractor is typically the direct employer of the worker who recruits and manages the labour, while the principal employer is the establishment that engages the contractor to provide the workers. So, the workers are recruited by a contractor, but eventually work for the principal employer. The labour department’s action will affect 24 factories where these contractors are providing services. 

The officials clarified that the workers are entitled to the Employees' Provident Fund (EPF), employees’ state insurance (ESI), gratuity, bonus, and double the standard wage rate for overtime work. No other deduction except EPF and ESI is permitted from their wages, and breach of these conditions will attract strict action against such contractors and principal employers.

Following the workers’ protest in Noida last week, the government constituted a high-powered committee on April 13, 2026 to facilitate dialogue between workers and employers. It also announced a 21 per cent hike in wages for workers engaged in 74 scheduled employments in Gautam Budh Nagar and Ghaziabad.

Unskilled workers' wages were increased to 13,690 per month, whereas semi-skilled workers and skilled workers’ wages were increased to Rs 15,059 and Rs 16,868, respectively. The revised rates are applicable for both contractual and permanent workers. The wage hike, however, is interim and the government plans to set up a formal wage board to conduct a comprehensive review and work out a permanent solution.

According to officials, the revised wages are applicable from April 1, 2026, and thus, the new wage rate payment will be made between May 7 and May 10.