Skip to content The Milan Public Prosecutor’s Office has ordered urgent judicial control over the Italian office of Caddell Construction, a U.S. company involved in the construction of the new U.S. Consulate in Milan, as part of an investigation into alleged unlawful labour intermediation and labour exploitation.
Lack of oversight and unlawful labour conditions
According to the available reports, some Indian workers were allegedly recruited in India through a local company and subsequently employed in Italy under a procedure linked to transnational posting. This procedure allows, under certain conditions, the entry into Italy of non-EU workers at a host entity belonging to the same company or group. To obtain the transfer, the workers allegedly paid significant sums to the intermediaries involved in the recruitment process, amounting to approximately 500,000 rupees.
Once they arrived in Milan, the workers were allegedly assigned to the construction site with extended shifts, up to 10–12 hours per day, six days a week. Their wages, initially indicated as approximately EUR 1,200 to EUR 1,500 per month, were allegedly reduced by deductions for food and accommodation, resulting in an effective wage that in some cases amounted to only a few euros per hour.
Investigators reportedly identified possible violations of minimum wage requirements, working hours and rest periods under Italian law. The case also led to the arrest of the manager of Caddell Construction’s Italian branch, who was accused of unlawful labour intermediation and stopped at Bergamo-Orio al Serio Airport while allegedly attempting to leave Italy.
What this means for companies
The case highlights the importance for companies employing foreign workers or operating through contracts, subcontracts and transnational postings to verify not only the formal correctness of the documentation, but also the actual working conditions.
Companies should pay particular attention to wages, working hours, rest periods, deductions for food and accommodation, recruitment costs, workers’ understanding of employment contracts, and controls over the parties involved in the supply chain.
The lack of adequate safeguards may expose companies to employment law, criminal law and administrative liability risks under Legislative Decree No. 231/2001.
The planning of large-scale projects involving international profiles is therefore becoming increasingly important. Companies should rely on specialised consultants for the management of immigration, tax, employment law and social security aspects related to international mobility.
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