Stories
300 Indians to Receive Rs 335-Crore Payout in Landmark European Labor Exploitation Settlement
- •Around 300 Indian workers out of 480 total affected employees are set to receive payouts from a historic 31 million euro settlement in Milan, Italy.
- •Workers were recruited by a third-party intermediary in New Delhi for American construction company Caddell Construction to build a new US consulate compound.
- •Investigations revealed workers faced para-slavery conditions including 12-hour shifts, illegal wage deductions, and hourly earnings as low as 1.31 euros.
- •The massive settlement includes nearly 20 million euros distributed directly to the workers, with individual payments expected within 30 days of signing.
- •Italian prosecutors placed Caddell's Italian branch under judicial administration and kept criminal investigations open, while two managers remain under house arrest.
Key Questions Answered
Indian workers employed by Caddell Construction on a US consulate compound project faced severe labor abuses, including working 12-hour days for under $2 an hour, heavy illegal housing and meal deductions, threats of dismissal, and recruitment debts. This prompted Italian prosecutors to investigate the situation as para-slavery, culminating in a EUR 31 million settlement agreed upon in September 2026.
The workers were recruited in New Delhi by a third-party intermediary named Dynamic House. Before flying to Italy, they were promised three-year employment, residence arrangements, and annual salaries exceeding EUR 24,000, though many had to pay around EUR 5,000 to secure the jobs.
Nearly EUR 20 million of the settlement is earmarked for distribution among the roughly 480 affected workers, while over EUR 11 million goes toward Italy's social security and workplace-injury systems. Individual payouts are expected within 30 days of signing the agreement, and workers are also being granted permission to work elsewhere in Italy.
