Labor Law Violation: Vidisha Municipal Body to Pay ₹10.18 Crore Compensation to 146 Workers

Vidisha: Municipality Penalized for Violating Labor Laws, Ordered to Pay ₹10.18 Crore Compensation Vidisha’s municipal body has landed in trouble for violating labor laws by paying its 146 sanitation workers less than half of the legally mandated minimum wage. Following the intervention of the National Human Rights Commission (NHRC), the labor department has now ordered the municipality to compensate the workers with ₹10.18 crore. Workers Were Paid Half the Minimum Wage for Nine Years The government has set the minimum wage for such workers at ₹10,500 per month, but Vidisha municipality had been paying its sanitation workers just ₹5,000 per month for the past nine years. How the Case Reached the Human Rights Commission Two months ago, NHRC member Priyank Kanungo visited the Valmiki Colony in Vidisha. During his visit, sanitation workers raised their concerns about underpayment. Taking immediate action, Kanungo registered the case with the commission and issued notices to the state government and municipal officials. When satisfactory responses were not provided even after two notices, the commission escalated the matter by issuing summons against the officials. This pressure led the state’s labor and urban administration departments to intervene. They assured that, starting from March, all sanitation workers would receive the revised minimum wage of ₹10,200 per month.

Labor Department Imposes Tenfold Penalty The Principal Secretary of the Labor Department informed the NHRC through an official letter that statements were recorded from all 146 sanitation workers by the Vidisha labor officer. The investigation confirmed that the workers were receiving only half of their entitled wages. Based on calculations, the labor department imposed a penalty ten times the underpaid amount, leading to a total compensation of ₹10.78 crore. A claim for this amount has been officially registered at the labor office in Vidisha. Municipality Assures Full Wages, Requests Time for Dues Payment Municipal Commissioner Durgesh Singh has assured the NHRC that starting from March, all employees will be paid as per the minimum wage regulations. He also confirmed that no worker would be terminated while the case remains under the commission’s review. In his letter, Singh mentioned that the pending wage difference of ₹92.57 lakh would be presented in the municipality’s budget meeting for approval. Citing financial constraints, he has also requested additional time to clear the outstanding dues.