What is the penalty for retrenching workers illegally?

Breaking the rules on retrenchment, lay-off compensation, transfer or closure compensation can bring a fine of ₹50,000 to ₹2,00,000 s. 86(3).
Breaking the rules that need Government permission can bring a fine of ₹1,00,000 to ₹10,00,000 s. 86(1).

Last checked 1 Nov 2026 · written from the official text · not reviewed by a lawyer. This explains the law in general and does not decide your case.

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