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Finance ministry ties government tenders to labour law compliance and harsher penalties for violators
Economy
Published on 9 May 2026
Debarment and blacklisting may follow late wages
A May 8, 2026 office memorandum from India’s Department of Expenditure directs central ministries and agencies to link procurement with Labour Code protections. The move operationalises worker safeguards while raising the stakes for contractors. Firms that miss timely wage and social security contributions could face strict enforcement actions, including debarment and blacklisting, affecting future government contracts.
- Procurement now must align with protections under the four Labour Codes
- Contractors face stricter consequences for delays in wages and social security
- Actions can include debarment and blacklisting from government tenders
- Central ministries, autonomous bodies and CPSEs must implement the directive
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times