Mandviya Warns Agencies Over Wage Delays, Unveils New Employment Policy

Addressing the CII Annual Business Summit 2026, Mandviya said delays in salary payments by contractual agencies were creating distress among workers and increasing labour-related tensions.

"Trade union burdens are also becoming a huge concern for contractual workers," the minister said, adding that in many cases agencies fail to pay workers on time.

Mandviya said directions had already been issued to industries to ensure timely wage disbursal to contractual employees. "If you have contractual workers working here, they should get payment on time," he said.

He further warned that agencies violating labour norms should face strict action. "If agencies fail to comply, then do the backlash and also remove them from work," he said.

The minister stressed that contractual labourers deserve dignity and fair compensation. "He should also be respected, he should also get wages on time and full wages," Mandviya said, while calling upon industries to actively monitor compliance with labour laws.

Speaking on employment generation, the minister announced that the government is preparing a new Employment Policy, which will soon be placed in the public domain for stakeholder feedback.

Recalling the migrant labour crisis during the COVID-19 pandemic, Mandviya said the country witnessed severe hardships faced by workers during the lockdown period.

"We have seen the horrors of the crisis when labour had to go to his village, the railway stations were destroyed, our workers were out on the road," he said.

The minister proposed the creation of coordinated crisis-management mechanisms in industrial clusters involving industry bodies, federations and the government. Highlighting India's demographic advantage, Mandviya said the country's youth population gives it a strong position in the global economy.

"65 per cent of the population in the country is 35 and today it used to be that only labourers from India used to go to the world," he said, adding that India is now being viewed globally as a major market and investment destination.

"World is looking at India as a very big market. Why keep India's friendship? Because India is a huge market for them and we have to encash that market," he added.

Linking economic growth with employment generation, the minister said rising purchasing power boosts manufacturing and job creation. "When your economy grows then your purchasing power increases. If your purchasing power increases, demand will increase, then manufacturing will increase, when manufacturing increases, then employment will increase," he said.

Mandviya also highlighted reforms such as the Labour Code and GST, saying they had widened the tax base without increasing tax rates.

"Taxes did not increase in 12 years but the budget increased... We brought more people into the tax regime to pay taxes," he said.

Emphasising the need for cooperation between labour and industry, Mandviya said, "Through a catalytic approach, we have tried to cement the relationship between industry and labour through the implementation of the Labour Code," adding that no sector can function without workers.

- ANI