Penalties for Non-Compliance

Section 26 — Penalty on Employer

For failure to constitute ICC (or any other employer obligation under the Act):

• Fine up to ₹50,000
• Second and subsequent violations: Fine doubled — up to ₹1,00,000 AND cancellation of licence/registration to carry on business

Consequences of cancellation: No employer whose registration/licence is cancelled can re-operate without fresh registration — effective deterrent for large establishments.

Section 17 — Penalty for Breach of Confidentiality

If any person — including ICC members — breaches the confidentiality requirement under Section 16:

• Fine up to ₹5,000 — to be deducted from salary or paid as penalty

Key Numbers Summary:

Violation	Penalty
ICC not constituted	₹50,000 fine
Repeat violation	₹1,00,000 + licence cancellation
Confidentiality breach	₹5,000
Inquiry to be completed in	60 days
Complaint must be filed in	3 months (extendable to 6)
Annual report to be submitted by	End of each calendar year

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