Labour Laws Q/A

NON-COMPLIANCE OF ACT – CONSEQUENCES OF

What consequences follow for non-compliance of the provisions of the Act?

The employer will be liable for punishment with a fine upto `50,000 if he has not constituted an ICC or if the employer has not taken action on the recommendation of the ICC/LCC or has failed to make disclosure in/file its Annual Report or has contravened or attempted to contravene or abets contravention of other provisions of the Act or any Rules made under the Act.

The employer is also liable to twice the punishment (which might have been imposed on a first conviction) if after having been previously convicted of an offence punishable under the Act, he commits and is convicted again of the same offence. However, in case a higher punishment is prescribed under any other law for the time being in force, for the offence for which the accused is being prosecuted, the court shall take due cognizance of the same while awarding the punishment.

Further, there can be cancellation of licence or withdrawal or non-renewal of approval or cancellation of the registration by the government or the local authority required for carrying on the business or activity by the employer.

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