Misuse of benefits under labour law may lead to notification-based deprivation after hearing and administrative satisfaction of misuse.

Misuse of any benefit under the Code or the rules may be determined on the recommendations of the authority, the competent authority, or the Social Security Organisation. If the Central Government is satisfied that an establishment or any person has misused such benefit, it may issue a notification depriving that establishment or person of the benefit for the period specified in the notification. No such order may be passed unless the concerned establishment or person is given an opportunity of being heard.

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