Corrigendum Notification regarding under section 56 of the Code on Wages, 2019.

Executive Summary The Ministry of Labour and Employment issued this corrigendum on August 19, 2026, to rectify a specific provision in the previous notification (S.O. 2455(E)) dated May 12, 2026. The document clarifies the authority of designated officers to compound offences under the Code on Wages, 2019. It explicitly excludes offences punishable by imprisonment only, or imprisonment combined with a fine, from the scope of compounding.

Key Points / Main Content

Correction of Notification S.O. 2455(E)

• The document amends page 3 of the notification dated May 12, 2026, issued by the Ministry of Labour and Employment.
• The amendment replaces specific phrasing to ensure the legal interpretation of compounding powers aligns with the Code on Wages, 2019.

Scope of Compounding Offences

• Designated officers are authorized to compound offences within their specified jurisdictions as per the Code on Wages, 2019.
• Compounding is permitted for "any offence" under the Code, subject to specific exclusions regarding the nature of the punishment.

Prohibited Compounding (Exclusions)

• Offences that are punishable with imprisonment only cannot be compounded.
• Offences that are punishable with imprisonment and also with fine are also excluded from compounding.
• The corrigendum ensures that only offences involving fines (and not mandatory or exclusive imprisonment) are eligible for the compounding process.

Impact Analysis

Designated Officers (Enforcement Authorities) Impact The legal scope of their power to settle or "compound" offences is now strictly defined and restricted. Action Required Officers must update their enforcement protocols to ensure they do not compound any violations that carry penalties of mandatory imprisonment or imprisonment combined with a fine.

Employers and Establishments Impact Establishments facing prosecution under the Code on Wages, 2019, are now formally notified that serious offences involving imprisonment cannot be settled through the compounding process. Action Required Employers must ensure strict compliance with the Code on Wages, 2019, as the option for a settled resolution (compounding) is unavailable for more severe violations.

Legal Practitioners and Compliance Officers Impact The corrigendum provides the necessary legal clarity required for interpreting the penal provisions of the Code on Wages, 2019. Action Required Must update internal compliance checklists and legal advice to reflect that only non-imprisonment-related offences are eligible for compounding under the specified Code.