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Firm owners face financial penalties and imprisonment for violating labor rights
Tekchandra Sanodia Shastri: 9822550220
New Delhi. According to the Indian Labor and Industrial Court’s decision, if the rights and privileges of contract workers employed in small-scale factories and heavy industrial units are violated, the manufacturing company owner can be punished with a financial penalty and rigorous imprisonment. According to labor law in India, labor rights violations are a serious offense for which company owners (employers) can face both financial penalties (fine) and/or imprisonment. The severity of the punishment depends on the nature of the violation and the specific labor law in question.
Regarding key provisions and penalties, it should be noted that failure to pay minimum wages on time and violations of the Minimum Wages Act can result in monetary penalties and legal action. Under the new Wage Code, 2019, a first-time violation is punishable by a fine of up to ₹50,000 and a repeat violation is punishable by up to three months’ imprisonment.
Regarding working hours and overtime, employers require workers to work more than the prescribed eight hours and fail to adhere to overtime or break rules. Such cases involve legal action, fines, or imprisonment of up to three months.
Regarding safety and health violations, the Factories Act, 1948, and the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) provide for strict penalties for serious safety violations. Employers can face a fine of up to ₹2 lakh per violation and imprisonment of up to two years. If a violation results in the death or serious bodily injury of an employee on the job, even more stringent penalties are provided, including imprisonment of up to seven years and a substantial fine.
Regarding unfair labor practices, it is stated that under the Industrial Disputes Act, 1947, anyone found engaging in unfair labor practices can be punished with imprisonment of up to six months, a fine (up to ₹1,000), or both.
Child Labor: Under the Child Labor (Prohibition and Regulation) Act, 1986, employing children under the age of 14 in hazardous industries is a punishable offense, punishable by both imprisonment and fine.
Regarding the legal process, it is stated that workers can file complaints with the Labor Department, Labor Court, or the relevant court. Courts impose fines and, in some cases, even imprisonment, depending on the severity of the case. According to the new Labor Codes, serious and willful violations are punishable by financial penalties and stringent punishments.
Please note: *The above news is based on general knowledge from the perspective of labor welfare. For more information, industrial workers can consult and discuss with an expert lawyer. Thank you
