Section 86: Penalties

Finin2min analysis — what the section actually does

Full statutory text — Section 86

86. Penalties.—(1) An employer who contravenes the provisions of section 78 or section 79 or
section 80 shall be punishable with fine which shall not be less than one lakh rupees, but which may
extend to ten lakh rupees.
    (2) An employer who after conviction for an offence under section 78 or section 79 or section 80
again commits the same offence under section 78 or section 79 or section 80, then, he shall for the
second or subsequent offence be punishable with fine which shall not be less than five lakh rupees, but
which may extend up to twenty lakh rupees or with imprisonment for a term which may extend to six
months, or with both.
    (3) An employer who contravenes the provisions of section 67 or section 70 or section 73 or section
75 shall be punishable with fine which shall not be less than fifty thousand rupees, but which may
extend to two lakh rupees.
    (4) An employer who after conviction for an offence under section 67 or section 70 or section 73 or
section 75 again commits the same offence under section 67 or section 70 or section 73 or section 75,
then, he shall for the second or subsequent offence be punishable with fine which shall not be less than
one lakh rupees, but which may extend to five lakh rupees or with imprisonment for a term which may
extend to six months, or with both.
    (5) Any person who commits any unfair labour practice as specified in the Second Schedule shall
be punishable with fine which shall not be less than ten thousand rupees, but which may extend to two
lakh rupees.
    (6) Any person who after conviction for any unfair labour practice again commits the same offence,
then, he shall, for committing the second or subsequent offence, be punishable with fine which shall
not be less than fifty thousand rupees, but which may extend to five lakh rupees or with imprisonment
for a term which may extend to three months, or with both.
    (7) If default is made on the part of any registered Trade Union in giving any notice or sending any
statement or other document as required by or under any of the provisions of this Code, every office-
bearer or other person bound by the rules of the Trade Union to give or send the same, or, if there is no

such office-bearer or person, every member of the executive of the Trade Union, shall be punishable
with fine which shall not be less than one thousand rupees, but which may extend to ten thousand rupees
and any continuing default shall be punishable with an additional penalty of fifty rupees per day so long
as the default continues.
   (8) Any person who wilfully makes, or causes to be made, any false entry in, or any omission from,
the general statement required by section 26 or in or from any copy of rules or of alterations of rules
sent to the Registrar under that section, shall be punishable with fine which shall not be less than two
thousand rupees, but which may extend to twenty thousand rupees.
   (9) Any person who, with intent to deceive, gives to any member of a registered Trade Union or to
any person intending or applying to become a member of such Trade Union any document purporting
to be a copy of the rules of the Trade Union or of any alterations to the same which he knows, or has
reason to believe, is not a correct copy of such rules or alterations as are for the time being in force, or
any person who, with the intent, gives a copy of any rules of an unregistered Trade Union to any person
on the pretence that such rules are the rules of a registered Trade Union, shall be punishable with fine
which shall not be less than five thousand rupees, but which may extend to twenty thousand rupees.
   (10) An employer who fails to submit draft standing orders as required by section 30, or who
modifies his standing orders otherwise than in accordance with section 35, shall be punishable with fine
which shall not be less than fifty thousand rupees, but which may extend to two lakh rupees and in the
case of a continuing offence with an additional fine of two thousand rupees per day till the offence
continues.
    (11) An employer who does any act in contravention of the standing orders finally certified under
this Code shall be punishable with fine which shall not be less than one lakh rupees, but which may
extend to two lakh rupees.
    (12) Any person who after conviction under sub-section (11) again commits the same offence, then,
he shall, for committing the second or subsequent offence be punishable with fine which shall not be
less than two lakh rupees, but which may extend to four lakh rupees or with imprisonment for a term
which may extend to three months, or with both.
    (13) Any worker who commences, continues or otherwise acts in furtherance of a strike which is
illegal under this Code, shall be punishable with fine which shall not be less than one thousand rupees,
but which may extend up to ten thousand rupees or with imprisonment for a term which may extend to
one month, or with both.
     (14) Any employer who commences, continues, or otherwise acts in furtherance of a lock-out which
is illegal under this Code, shall be punishable with fine which shall not be less than fifty thousand
rupees, but which may extend to one lakh rupees or with imprisonment for a term which may extend to
one month, or with both.
    (15) Any person who instigates or incites others to take part in, or otherwise acts in furtherance of,
a strike or lock-out which is illegal under this Code, shall be punishable with fine which shall not be
less than ten thousand rupees, but which may extend to fifty thousand rupees or with imprisonment for
a term which may extend to one month, or with both.
    (16) Any person who knowingly spends or applies any money in direct furtherance or support of
any illegal strike or lock-out shall be punishable with fine which shall not be less than ten thousand
rupees, but which may extend to fifty thousand rupees or with imprisonment for a term which may
extend to one month, or with both.

   (17) Any person who commits a breach of any term of any settlement or award, which is binding on
him under this Code, shall be punishable with fine which shall not be less than twenty thousand rupees,
but which may extend to two lakh rupees or with imprisonment for a term which may extend to three
months, or with both.
   (18) Where the breach under sub-section (17) is a continuing one, the offender shall be punishable
with an additional fine which may extend to one thousand rupees for every day during which the breach
continues after the first conviction and the court trying the offence, if it fines the offender, may direct
that the whole or any part of the fine realised from him shall be paid, by way of compensation, to any
person who, in its opinion, has been affected by such breach.
   (19) Any person who wilfully discloses any such information as is referred to in section 61 in
contravention of the provisions of that section shall, on a complaint made by or on behalf of the Trade
Union or individual business affected, be punishable with fine which may extend to twenty thousand
rupees, or with imprisonment for a term which may extend to one month, or with both.
   (20) Any person who contravenes any other provision of this Code not covered under sub-sections
(1) to (19) or the rules or regulations framed under this Code shall be punishable with fine which may
extend to one lakh rupees.

How to apply this provision

1. Primary statutory test — (1) An employer who contravenes the provisions of section 78 or section 79 or section 80 shall be punishable with fine which shall not be less than one lakh rupees, but which may extend to ten lakh rupees.
2. Additional operative limb — (2) An employer who after conviction for an offence under section 78 or section 79 or section 80 again commits the same offence under section 78 or section 79 or section 80, then, he shall for the second or subsequent offence be punishable with fine which shall not be less than five lakh rupees, but which may extend up to twenty lakh rupees or with imprisonment for a term which may extend to six months, or with both.
3. Numerical or timing control — Penalties.—(1) An employer who contravenes the provisions of section 78 or section 79 or section 80 shall be punishable with fine which shall not be less than one lakh rupees, but which may extend to ten lakh rupees.
4. Central Rule mapping — 44. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
5. Evidence file — retain facts and records proving the role/status of: Employer, Worker, Trade union.

Rules, forms and cross-references

A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.

Worked example

Q&A — Section 86

Source & verification trail