Trigger
Document the fact pattern that activates section 89: composition of offences.
Section 89 — Composition of offences
Provision-level interpretation, linked Central Rules, authority, forms, evidence and consequence map. Always read the official provision for exact words.
Statutory identity
Clause and operative provision map
Test 1
Specified first offences may be compounded for the statutory percentage of maximum fine; repeat or excluded offences cannot be assumed compoundable.
Test 2
Rule 38, Form XV and the notified compounding officers govern the process.
Implementation control
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner
Assign HR/ER, legal, payroll/finance and authorised signatory roles; no action should depend on an undocumented oral decision.
Evidence pack
Keep notices, acknowledgements, muster/membership records, resolutions, calculations, hearing records, orders and bank/portal proof relevant to this section.
State overlay
Where the State Government is appropriate, verify final State rules, notifications and authorities; Central Rules are not automatically the entire answer.
Remedy and consequence
Use the Code forum, appeal/recovery/permission route and section 86 penalty matrix. Check unfair-labour-practice implications separately.
Linked Industrial Relations (Central) Rules, 2026
Authority, notification and form map
Worked control example
An establishment proposes an action connected with composition of offences. The legal owner first fixes the appropriate Government and coverage threshold, opens the official section and linked rules, creates a dated evidence file, serves the prescribed notice/form, records the hearing or consultation, and releases the decision only after the statutory waiting/permission condition is met. The file separately checks section 84 unfair labour practices and section 86 penalties.
Practical questions
Can an internal HR policy replace this section?
No. A policy may operationalise the provision but cannot reduce a statutory, certified-standing-order, settlement or award right.
Is the Central Rule always enough?
No. Identify the appropriate Government and check final State rules, authority notifications, exemptions and later amendments.
What evidence should be retained?
Retain source law, coverage memo, approvals, notices and delivery, worker/union records, calculations, hearing material, order, portal filing and implementation proof.