US construction firm Caddell Construction has agreed to pay EUR30.941 million (USD35.24 million) in a probe into alleged worker exploitation at the site of the new US consulate in Milan, Italy.

The company will pay nearly EUR20 million to workers in overtime, accommodation reimbursements, and compensation for non-material damages, and an additional EUR7 million to Italy's social security agency INPS and EUR4 million to the Labour Inspectorate.

Caddell did not admit any liability and stated that it was committed to treating and paying workers fairly.

The agreement involves the regularisation of around 500 workers, the recognition of residence permits for 270 foreign workers, and unemployment benefits for 60 workers who had been dismissed.