More than 300 Indian workers are among nearly 480 people expected to receive compensation following an investigation into alleged labour exploitation at the construction site of the new US consulate in Milan, Italy. Alabama-based Caddell Construction has agreed to a €31 million settlement, equivalent to approximately ₹335 crore, in what prosecutors and trade unions have described as Europe’s largest settlement of its kind.
The agreement provides financial relief and employment protections for affected workers. However, the criminal investigation remains ongoing, leaving important questions about accountability and overseas recruitment practices unresolved.
Milan Settlement: How the Case Emerged
The controversy centres on workers recruited from India for the construction project. According to the investigation, Indian nationals accounted for 316 of Caddell’s workforce in 2025.
Several workers reportedly paid recruitment agents approximately €5,000 to secure overseas employment, expecting fair wages and decent working conditions. Instead, prosecutors allege that some faced exploitative employment arrangements after arriving in Italy.
The case has drawn attention to the vulnerability of migrant workers who borrow substantial sums to secure jobs abroad. Such financial commitments can make it difficult for them to leave abusive workplaces or challenge employers, even when the actual conditions differ sharply from recruitment promises.
Alleged Exploitation and Workers’ Ordeal
Investigators have alleged several violations involving wages, working hours and workers’ welfare.
· Extremely low pay: Some workers reportedly received less than $2 an hour after deductions.
· Long working hours: Workers allegedly worked up to 10 hours daily, six days a week, without proper overtime compensation.
· Unlawful deductions: Housing costs were allegedly deducted from wages.
· Threats and inadequate care: Workers reportedly faced intimidation and insufficient medical assistance following workplace injuries.
These allegations form the basis of the wider investigation; they should not be confused with a final judicial determination of criminal liability.
€31 Million Settlement: What Workers Will Receive
The settlement allocates approximately €19.7 million directly to workers, with the remaining funds directed towards Italy’s social-security and workplace-injury systems. Individual compensation varies according to unpaid wages, overtime, housing deductions and damages.
According to the Associated Press, payouts are averaging around €45,000, with some workers eligible for amounts approaching €90,000. More than 60 workers signed compensation agreements on October 7, 2026, as the payment process gathered momentum.
The agreement also provides employment protections, including special permits allowing eligible foreign workers to continue working in Italy beyond the Caddell project. However, the settlement does not directly address alleged recruitment abuses that may have occurred in India.
Justice Must Extend Beyond Compensation
Caddell has maintained that the settlement does not constitute an admission of liability. Meanwhile, Italian authorities continue investigating the allegations involving the company and two managers, while US authorities have also indicated that they are examining the case.
The settlement represents a significant step towards financial relief for affected workers, but money alone cannot undo the hardship associated with alleged exploitation, recruitment debt and unsafe working conditions.
The lasting lesson must be stronger protection at every stage of overseas employment. India needs rigorous recruitment oversight, transparent fee structures, accessible grievance mechanisms and stronger coordination between its diplomatic missions and foreign labour authorities. Only when workers can pursue opportunities abroad without risking their savings, dignity or safety will international employment deliver the promise of a better future.
(With agency inputs)
