NOIDA:
A government warning issued to labour contractors amid the wage hike protests in Noida has put the spotlight on recruitment practices in factories.
On Tuesday, the Noida administration said contractors would be “held accountable for any disruptive or damaging behaviour by workers associated with them”.
“Their licences can be cancelled and they may be blacklisted,” said district magistrate Medha Roopam.
While laws, such as the Contract Labour (Regulation and Abolition) Act, 1970, and the Employees’ Compensation Act, 1923 mandate registration, record-keeping, minimum wage compliance, and worker welfare safeguards, conversations with contractors and workers indicate that implementation on the ground varies, fragmenting accountability structures and implementation of labour norms.
Contract workers are those hired through third-party contractors rather than directly employed by a company, with the contractor responsible for sourcing labour while the principal employer oversees work and payments. In Noida’s industrial belt, a significant share of the shopfloor workforce is engaged through such arrangements, particularly in sectors like auto components, garments and electronics.
Labour contractors told HT that most companies in the industrial belt follow a mixed hiring approach: while some units recruit workers directly, others rely on contractors to source labour. The workforce in Noida’s industrial belt is largely migrant-driven, with only a small proportion of workers locals
“The contractor’s role is mainly to bring in labour and get the work done,” said a contractor associated with hiring for units in Noida’s Phase 2 industrial area.
“Recruitment is often carried out through outreach in villages across Uttar Pradesh, Bihar and West Bengal, where camps are organised to inform potential workers about job opportunities and wages. Workers typically join in groups, and in many cases, those already employed bring in others through personal networks,” said a contractor associated with the auto industry in Ecotech III, Greater Noida.
The wage payments however, are handled directly by companies. “Contractors mainly arrange the workforce and ensure the work is completed,” said Ecotech III contractor.
“Contractors further emphasised that wage levels are determined by government notifications. ‘We cannot decide wages on our own. Whatever the government notifies, we have to follow,’ said a contractor associated with units in Ecotech III, Greater Noida.
Their own earnings, they added, come from a service charge paid by companies — usually between 3% and 5% — rather than deductions from workers’ salaries.
Record-keeping and attendance are generally maintained at the company level. Workers are issued identification cards and their personal details — including family information — are recorded during onboarding.
One contractor maintained that licensed contractors and principal employers follow statutory requirements, including adherence to government-notified minimum wages and provisions such as the provident fund (EPF) and Employees’ State Insurance (ESIC).
“A lot of us don’t have any written contract. I was hired through a local contact and get paid on a monthly basis directly into my bank account, but there’s no formal appointment letter or job security,” said a worker in Noida’s industrial area, requesting anonymity.
Another worker employed at a manufacturing unit in the Phase 2 industrial area said, “Payment and work conditions depend on the company. Sometimes it’s daily, sometimes monthly, and we manage our own rooms and expenses. There is no uniform structure.”
When asked about the salary revisions, one worker, Tula Ram said, “How can we believe that factory owners will increase our compensation? The increase reported by the media also does not seem beneficial for us. How can we not agitate? There should be a respectable increase, and factory owners should paste the revised salary in printouts outside their gates. We are paid by factory owners, not the government.”
HT reached out to multiple companies and union representatives for comments. However, responses from industry players remained limited at this stage. One Noida-based auto components manufacturer declined to share details on workforce size, wages or recent revisions, citing the issue as part of a broader industry-wide matter.
In a statement released on Monday, Samvardhana Motherson International Ltd, which saw violent protests at its site in Phase-2. said it is aligned with applicable labour laws and industry practices, and is reviewing the implications of the recently announced wage revision.
District magistrate Medha Roopam said the administration is monitoring the situation closely and ensuring compliance with labour laws. “Contractors and principal employers are both accountable under the law. Any violation of labour norms will invite strict action,” she said.