In a major enforcement action following recent worker unrest in Gautam Budh Nagar, the labour department has initiated proceedings against 203 contractors across 24 factories for alleged violations of labour laws, officials said on Friday.
The department has also issued notices to the contractors, directing them to pay over ₹1.16 crore to workers who were allegedly denied statutory benefits.
Labour department officials said the action includes cancellation of licences, recovery of dues and blacklisting of firms found to be in violation. “Action is being taken against 203 contractors engaged across 24 factories for non-compliance with labour laws,” said additional labour commissioner Rakesh Dwivedi.
Officials said notices have been issued for payment of ₹1,16,05,067 to workers towards dues and benefits.
Linking the action to the recent unrest, the labour department flagged the role of some contractors as “suspicious”. “In cases where workers engaged by certain contractors were involved in vandalism during the agitation, the role of those contractors appears suspicious and is being examined,” Dwivedi said.
The crackdown comes in the backdrop of protests by workers demanding wage revisions, which had escalated into law and order concerns earlier this week. Officials said the state government had constituted a high-level committee to examine the issue, which has since recommended a wage increase.
“As per the recommendations of the high-level committee, wages of workers in 74 scheduled employments in Gautam Budh Nagar and Ghaziabad have been increased by 21%,” Dwivedi said. “The revised wage rates have come into effect from April 1, 2026, and payment at the enhanced rates will be made between May 7 and May 10.”
Officials further said that workers are entitled to a range of benefits, including provident fund, ESI, overtime wages at double the rate, bonus and gratuity. Officials also said no deductions other than those towards EPF and ESI are permitted from workers’ wages, and violations would invite strict action. “Contractors must ensure timely payment of wages. Any delay or underpayment will invite recovery proceedings, cancellation of licences and blacklisting,” he added.
In a significant move, the department also fixed responsibility on principal employers. “In cases where contractors fail to pay wages on time or make short payments, the principal employer will also be held accountable,” Dwivedi said, adding that recovery proceedings would be initiated and prosecution filed in court where necessary.
Officials said more contractors are being identified and further action is likely in the coming days as part of a wider compliance drive in the district.
The district administration had earlier warned contractors of strict action in cases where workers linked to them were involved in unrest or damage to property.