OFFENCES AND PENAL PROVISIONS UNDER THE LABOUR AND EMPLOYMENT ACT 2007
         
SL.NO SECTION OFFENCES PENALTY AS PER BHUTAN PENAL CODE 
         
1 8 Forced or compulsory labour Felony of Fourth Degree 3 - 5 years of imprisonment 
         
2 10 Child Labour Felony of Third Degree 5 - 9 years of imprisonment
         
3 15 Discrimination against employees  Minimum one year fine to a maximum Nu. 3,6500 -  Nu.10,9500
    and job seekers of three years of the Daily Minimum  
      National Wage Rate  
         
4 20 Sexual Harassment Petty Misdemeanour 1 month to one year of imprisonment
      In addtion, according to the severity of  OR
      the offence, Court may impose a fine at Nu. 100 - Nu.300,000
      the rate of the Daily Minimum National   
      Wage Rate to a maximum of 3000 days   
      of the Daily Minimum National Wage Rate  
         
5 33 Divulging confidential information Misdemeanour 1 - 3 years of imprisonment 
    by Labour Relations Officer, Labour     
    Inspector or Advisor     
         
6 36 Conflict of Interest exercised by  Misdemeanour 1 - 3 years of imprisonment 
    Labour Relations Officer, Labour     
    Inspector or Advisor     
         
7 38 Obstruction to entry and inspection Petty Misdemeanour 1month - 1 year of imprisonment 
         
8 41 Non compliance to Improvement Notice  fine at the rate of the Daily Minimum  Nu.100 to Nu.36,000
      National Wage Rate to a maximum of   
      360 days   
         
9 45 Non compliance to Prohibition Notice a) A Misdemeanour; or a) 1 - 3 years of imprisonment 
      b) If aggravated circumstances exist, b) 3 - 5 years of imprisonment
      a felony of the fourth degree  
         
10 50 Non compliance to the notice affirmed  a) A Misdemeanour; or a) 1 - 3 years of imprisonment 
    by the Chief Labour Administrator under b) If aggravated circumstances exist, b) 3 - 5 years of imprisonment
    section 48 a felony of the fourth degree  
         
11 63 Contract of employment not put  violation fine at the Daily Minimum National 
    in writing   Wage Rate for a maximum of 90 days
         
12 66 Terms and conditions of contract of violation and in addition Ministry may  fine at the Daily Minimum National 
    employment not as per the minimum direct for payment of appropriate  Wage Rate for a maximum of 90 days
    standard set by the Act damages or compensatory damages and compensation as per the gravity 
        of the case
         
13 71 Failure to specify a notice period of  violation fine at the Daily Minimum National 
    termination of contract of employment    Wage Rate for a maximum of 90 days
    in the contract of employment    
         
14 75 Probation period Petty Misdemeanour 1month - 1 year of imprisonment 
         
15 80 Failure to have an Internal Service Rules fine at the Daily Minimum National  Nu. 100 - Nu. 1,09,500
      Wage Rate for a maximum of 3 years of  
      the Daily Minimum National   
         
16 86 Unlawful reason for termination  A Misdemeanour and in addition the   1 - 3 years of imprisonment and/or
      court may direct the employer for  reinstatment and/or compensation 
      reinstatement of the employee or for  
      payment of appropriate damages or  
      compensatory damages.  
         
17 98 Non payment of compensation  Felony of fourth Degree  3 - 5 years of imprisonment
      Court may also order payment of   
      compensation as prescribed in the rules  
         
18 102 Non payment of benefits Felony of fourth Degree  3 - 5 years of imprisonment
      Court may also order payment of   
      compensation as prescribed in the rules  
         
19 116 Non compliance to Sections 111 to 115 Misdemeanour 1 - 3 years of imprisonment 
    (Night and Risky work, Work on return    
    from maternity leave, Nursing mothers     
    and continuous employment)    
         
20 123 Non compliance to the terms for payment fine at the Daily Minimum National  Nu. 100 to Nu. 9000
    of wages  Wage Rate for a maximum of 90 days  
         
21 126 Non payment of overtime pay for night work Petty Misdeneanour 1 month - 1 year of imprisonment 
         
22 128 Non payment of wages on termination  fine at the Daily Minimum National  Nu. 100 to Nu. 9000
    of contract of employment Wage Rate for a maximum of 90 days  
         
23 130 Non payment of unclaimed wages fine at the Daily Minimum National  Nu. 100 to Nu. 9000
      Wage Rate for a maximum of 90 days  
         
24 133 Unlawful decuctions Petty Misdeneanour 1 month - 1 year of imprisonment 
         
25 137 Non-maintenance of wage record Fine at the rate of the Daily Minimum Nu. 100 - Nu. 1,09,500
      National Wage Rate to a maximum of 3  
      years of the Daily Minimum National   
      Wage Rate.  
         
26 145 Non performance of employer's duties Felony of Fourth degree  3 -5 years of imprisonment
    to employees under Occupational  In addition, court may impose appropriate  and appropriate damages
    Health and Safety Rules compensatory damages  
         
27 156 Failure to report accident or incident Fine at the rate of the Daily Minimum Nu. 100 - Nu. 36,500.00
      National Wage Rate to a maximum of 1  
      years of the Daily Minimum National   
      Wage Rate.  
         
28 161 Non performance of employee's duties Fine at the rate of the Daily Minimum Nu. 100 - Nu. 36,500.00
    under the Occupational Health and Safety National Wage Rate to a maximum of 1  
    Rules years of the Daily Minimum National   
      Wage Rate.  
         
29 168 Non performance of duties by other  a) suspension of business licence in the   
    persons such as designers, manufacturers, first instance  
    importers or suppliers of machineries b) cancellation of business licence in the   
    or chemicals  second instance  
         
30 172 Employment of child below the minimum Felony of third degree 5 - 9 years of  imprisonment
    age limit set by the Act    
         
31 183 Non compliance of Workers' Association  As per the penal code of Bhutan As per the grading given by court
    to negotiate in good faith and for     
    propagating activities adversely affecting    
    the security of the country    
         
32 187 restraining the employees from exercising Petty Misdemeanour 1month - 1 year of imprisonment 
    their right to atttend court proceeedings     
    with pay    
         
33 191 Non compliance with the provision on  Petty Misdemeanour 1month - 1 year of imprisonment 
    Workplace Grievance Procedure specified    
    in the Act    
         
34 217 Non compliance with the terms and  Shall be penalised according to the  As priscribed by the Rules depending 
    conditions of licence by Employment Agent Licencing Rules and Regulations upon the gravity of the case
         
35 222 Employment of foreigner without permit Felony of the fourth degree 3-5 years of imprisonment
         
36 225 Non compliance to the provisions on  Misdemeanour 1 - 3 years of imprisonment 
    prohibitions on employment of foreigners    
         
37 229 Offences relating to permit Misdemeanour 1 - 3 years of imprisonment 
         
38 230 Forgery and counterfeiting a permit Felony of the fourth degree 3-5 years of imprisonment