Non-compliance with the Industrial Disputes Act can lead to fines up to ₹5,000 and imprisonment up to six months. For the Contract Labour Act, violations can result in up to three months’ imprisonment or a fine up to ₹1,000.

Non-compliance with labour laws like the Industrial Disputes Act and the Contract Labour (Regulation & Abolition) Act can result in a range of penalties, including fines, imprisonment, and loss of credibility. Specific penalties vary depending on the nature and severity of the violation.
Industrial Disputes Act:
Unfair Labour Practices: Imprisonment up to six months, or a fine up to one thousand rupees, or both.
Closure without Notice: Imprisonment up to six months, or a fine up to five thousand rupees, or both.
Workplace Safety Violations: Imprisonment up to two years and/or a fine of up to ₹1 lakh.
Working Hour Violations: Fine up to ₹10,000 or imprisonment up to three months.
Repeated Violations: Penalties of up to ₹50 lakh and imprisonment of up to three years.
Contract Labour (Regulation & Abolition) Act:
Violations of Act or Rules:
Imprisonment up to three months, or a fine up to one thousand rupees, or both, and potentially additional daily fines for continuing contraventions.
Violations of License Conditions:
Imprisonment up to three months, or a fine up to one thousand rupees, or both, and potentially additional daily fines for continuing contraventions.
Other Potential Consequences:
Loss of Credibility: Non-compliance can damage a company's reputation and lead to loss of contracts.
Business Closure: In severe cases, non-compliance may lead to the closure of the business.
Lawsuits: Employers may face lawsuits from employees or unions.
Compensation Claims: Employers may be required to compensate employees for damages resulting from violations.