LIN Non-Registration and Data Mismatch: The Penalty Framework Under 2026 Labour Codes

The question of penalties for non-registration or failure to update information under the new Labour Codes is not hypothetical. The legal framework is clear, and the financial and operational consequences are significant.

The Occupational Safety, Health and Working Conditions (OSH) Code, 2020, and the Code on Social Security, 2020, have established a unified compliance regime centered around the Labour Identification Number (LIN). Section 3(1) of the OSH Code mandates registration for every establishment, and Section 3(7) explicitly prohibits employing any employee if the establishment is not registered . The consequences of failing to register or update information are not just administrative; they carry real financial penalties and operational risks.

The Penalty Framework Under the OSH Code

Section 94: General Penalty for Contravention

Section 94 of the OSH Code prescribes the general penalty for contravention of the Code’s provisions:

“Save as otherwise expressly provided in this Code, if in, or in respect of, any establishment, there is any contravention of the provisions of this Code or regulations or rules, or bye-laws or any of standards, made thereunder or of any order in writing given under this Code or such regulations or rules or bye-laws or standards, the employer or the principal employer of the establishment, as the case may be, shall be liable to penalty which shall not be less than two lakhs rupees but which may extend up to three lakh rupees, and if the contravention is continued after the conviction, then, with further penalty which may extend to two thousand rupees for each day till such contravention continues.”

Enhanced Penalties for Serious Violations

Violation	Penalty
Non-compliance resulting in death	Imprisonment up to 2 years or fine of not less than ₹5,00,000 or both
Non-compliance resulting in serious bodily injury	Fine of not less than ₹2,00,000 which may extend up to ₹4,00,000
Obstructing an inspector	Imprisonment up to 3 months and fine up to ₹1,00,000
Registration obtained by misrepresentation or suppression of facts	Deemed contravention under Section 94

Section 3: Registration Obligation

Section 3(7) of the OSH Code explicitly states that no employer shall employ any employee in an establishment unless the establishment is registered under the Code. This is the direct statutory basis for the penalty framework.

The OSH Code provides a deemed registration provision under Section 3(8) for establishments already registered under any central labour law, subject to furnishing details within the prescribed time. The six-month window for existing establishments ends on November 9, 2026.

The Recovery Framework Under the Social Security Code

The Code on Social Security, 2020, provides a separate mechanism for recovery of contribution dues. Sections 125-128 deal with assessment and recovery, not with penalties for non-registration. They apply only after an employer has defaulted on contribution obligations.

Section	Subject Matter
Section 125	Assessment and determination of dues from employer – authorizes officers to conduct inquiries and determine the amount due, with a 5-year limitation period
Section 126	Appeal against order of Authorised Officer – allows employers to appeal orders under Section 125 within 60 days, requiring deposit of 25% of the amount due
Section 127	Interest on amount due – employers are liable to pay simple interest at the rate notified by the Central Government
Section 128	Power to recover damages – allows recovery of damages where an employer defaults on contribution payments

Section 128 explicitly states it applies only in the context of default in “payment of any contribution which he is liable to pay in accordance with the provisions of Chapter III or Chapter IV.”

What Happens After the Deadline

The six-month window for existing establishments to update their registration details on the Shram Suvidha Portal ends on November 9, 2026. If an employer fails to register or provide these details, they are in contravention of Section 3(7), which prohibits employing any employee in an unregistered establishment. This contravention attracts penalties under Section 94 of the OSH Code .

Violation	Legal Basis	Actual Penalty
Failure to register under OSH Code	OSH Code, Section 3(7)	Contravention punishable under Section 94 – fine of ₹2-3 lakhs for first offence; ₹2,000/day for continuing contravention
Registration obtained by misrepresentation	OSH Code provision	Deemed contravention under Section 94
Non-compliance leading to death	OSH Code provisions	Imprisonment up to 2 years or fine up to ₹5,00,000 or both
Non-compliance leading to serious injury	OSH Code provisions	Fine of ₹2-4 lakhs

DISCLAIMER: This content is for educational and informational purposes only, based on available Central and State notifications as of August 2026. It is not formal legal counsel. Please consult a qualified lawyer for advice tailored to your establishment’s specific operations.