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Noida protests: Admin cracks down on contractors — 203 blacklisted, fined Rs 1.16 crore

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.

SP delegation stopped by police at NoidaSamajwadi Party delegation being stopped by police personnel at DND Flyway as they were on their way to meet factory workers, in Noida, Gautam Buddha Nagar district, Uttar Pradesh. (PTI Photo)

The Labour department of the Gautam Buddha Nagar district administration on Friday initiated action to cancel licences of 203 contractors associated with 24 factories while imposing a penalty of Rs 1.16 crore on contractors who failed to comply with labour laws.

Following Monday’s protest by workers, which turned violent, 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. “Their role was found to be suspicious in some cases. Contractors who failed to comply with labour laws and denied workers their entitled benefits have been served notices of penalty, which must be paid to the workers,” he added.

While action is being taken to cancel licences, recover dues and blacklist firms of 203 contractors, the remaining contractors are being identified, and strict action will follow, Dwivedi further said.

“The government has made it clear that negligence towards workers’ rights will not be tolerated,” he added.

The action follows labour tensions in Gautam Buddha Nagar over wage hike demands, after which a government-appointed high-level committee recommended a 21% increase in wages for workers across 74 scheduled employments in Gautam Buddha Nagar and Ghaziabad. “The revised wages will be effective from April 1, and payments will be made between May 7 and 10. The hike applies equally to both contractual and permanent workers,” said an official.

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.

“Any violation will invite strict legal action. The Labour department has reiterated that overtime must be paid at double the rate, and statutory benefits such as bonus and gratuity must be ensured. In cases of delayed or underpayment of wages, both contractors and principal employers will be held accountable,” the official said, adding that prosecution will be initiated in court against those found violating payment norms.

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