Rule 182 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 182 sets the procedure for compounding, that is, settling a compoundable offence by paying a sum fixed under section 114 of the Code. The accused applies in Form XXVI, the notified officer issues a compounding notice in Form XXVII, the amount is paid within fifteen days, and a composition certificate follows within ten days of receipt.
Application in Form XXVI; the officer issues electronically a compounding notice in Form XXVII; the person applies in Part III and deposits the entire amount within fifteen days of receipt; the officer issues a composition certificate in Part IV within ten days of receiving the amount. If the amount is not deposited in time, prosecution follows after one month from the last date.
The Code behind the rule
Section 114(1) of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) lets certain penalties and offences be compounded, before or after the enquiry or institution of prosecution, by an officer notified by the appropriate Government, in the manner prescribed. The compounding sum is:
| What is compounded | Sum under section 114(1) |
|---|---|
| A penalty | Fifty per cent of the maximum penalty provided for it |
| An offence | Seventy-five per cent of the maximum fine provided for it |
The section lists the provisions covered: the penalty under section 12(3), section 94, section 96, section 97(1), section 99, section 106 and section 114(3), and offences under section 97(2), section 100(1), section 101, section 103(1)(b), section 105 and section 113(2). Sub-section (2) says that once compounded the person is discharged and no further proceedings lie. Sub-section (3) adds a further penalty equal to twenty per cent of the maximum penalty or fine for failing to comply with the officer's order. Sub-section (4) credits the sums to the social security fund under section 115(1). Sub-section (5) bars compounding for a second or subsequent penalty or offence within three years of one earlier compounded or convicted. Our explainer on sections 113-114 covers the section.
The Central Rules apply where the Central Government is the appropriate Government. Where the State Government is the appropriate Government, the State's own OSH rules apply. If you are considering compounding, our legal dispute resolution team can help you decide and file.
Rule 182 step by step
| Step | Sub-rule | Detail |
|---|---|---|
| 1. Application | 182(1) | The accused person desirous of composition applies in Form XXVI to the officer notified by the Central Government under section 114(1), before or after the enquiry or institution of prosecution |
| 2. Notice | 182(1) | The officer issues electronically a compounding notice in Form XXVII for the compoundable offence |
| 3. Response and payment | 182(2) | The person applies in Part III of Form XXVII electronically and deposits the entire compounding amount, by electronic transfer or otherwise, within fifteen days of receipt of the notice |
| 4. Certificate | 182(3) | The officer issues a composition certificate in Part IV of Form XXVII within ten days of receipt of the amount |
| 5. Default | 182(4) | If the amount is not deposited in time, prosecution is instituted after one month from the last date of the specified time, against the person, for the offences in the notice |
| 6. Pending case | 182(5) | Where prosecution is already in court, the officer sends a copy of the order to the court for intimation and further action |
The rule gives the amount only by cross-reference. It does not restate the fifty and seventy-five per cent figures; those come from the Code, and the actual sum is stated in item 6 of Part I of the notice.
Form XXVI: application for composition of offence
The form (headed "See rule 182(1)") asks for:
- name of applicant;
- father's or spouse's name;
- address;
- name of establishment;
- particulars of the offence;
- section of the Code under which the offence is committed;
- maximum fine provided for the offence under the Code;
- whether prosecution against the applicant is pending;
- whether this is a first offence or whether the applicant has committed any other offence earlier, with full details;
- any other information the applicant wishes to provide.
It ends with the applicant's name and signature and the date. Items 8 and 9 line up with section 114(5): the officer needs to know whether the applicant has a compounded or convicted offence in the past three years.
Form XXVII: the notice, in four parts
Form XXVII is headed "Notice to the employer for an offence committed under the provisions of the Code for the first time for composition of offences". It carries a notice number and date, and states that on the basis of records and documents produced the officer has reasons to believe the employer (with registration number) has committed an offence.
| Part | Content |
|---|---|
| Part I | Name of the person; name and address and registration number of the establishment; particulars of the offence; provisions of the Code, Scheme, Rules, Regulations or Standards violated; amount required for compounding; name and details of the account for depositing it |
| Part II | The option to pay the entire amount within fifteen days from the date of issue of the notice and return the application filled in Part III; if not paid in time, action for institution of prosecution is initiated without any further opportunity. Signed by the officer |
| Part III (see rule 182(2)) | The employer's application under section 114: details of the amount deposited (copy of the electronically generated receipt attached), details of any prosecution filed, whether first offence or earlier offences, other information |
| Part IV (see rule 182(3)) | The composition certificate: the offence under the stated sub-section of section 114 in respect of which the notice was issued has been compounded on receipt of the full amount, to the satisfaction of the notice |
Points to watch. First, the fifteen days run differently in the two texts: rule 182(2) counts from "receipt of the notice", Part II of the form counts from "the date of issue of this notice". Where issue and receipt differ, act on the earlier date. Second, rule 182(1) says the accused applies in Form XXVI, while Form XXVII Part III is also an application. The rule contemplates both: Form XXVI to start the process, and Part III as the response with payment. Third, the title of Form XXVII refers to an offence committed "for the first time", consistent with section 114(5), which bars compounding of a repeat within three years. Fourth, the form uses the word "Scheme", though the rule speaks only of Code, Rules, Regulations and Standards.
What compounding does and does not do
- It is an option. Part II says "you have an option to pay".
- It ends the matter once the certificate is issued: under section 114(2) the person is discharged and there are no further proceedings for that penalty or offence.
- It is not available for a repeat within three years of an earlier compounding or conviction (section 114(5)).
- The money goes to the social security fund for unorganised workers (section 114(4)). Our rule 183 article covers the fund.
- If the person does not comply with the officer's order, section 114(3) adds a penalty equal to twenty per cent of the maximum penalty or fine. Rule 182 does not mention it; it is a Code provision.
Practical examples
Example 1. An employer receives a Form XXVII notice on 3 March stating the compounding amount. It applies in Part III and pays by electronic transfer by 18 March, attaching the receipt. The officer issues the certificate within ten days of receipt of the amount.
Example 2. An employer does nothing for the fifteen days. The prosecution can be instituted after one month from the last date, in the court, for the offences in the notice.
Example 3. An employer is already being prosecuted. It applies for compounding; if the officer compounds, a copy of the order goes to the court for further action.
Compliance checklist
- Check whether the offence is on the compoundable list in section 114(1) and whether a repeat within three years rules it out.
- Diarise the fifteen-day deadline from the notice date.
- Pay by electronic transfer and keep the receipt for Part III.
- Collect the Part IV certificate and file it with the case record.
Need help with compounding?
Compounding can close a matter quickly, but the deadlines are short and a repeat offence is excluded. Our team can assess eligibility, prepare Form XXVI and Part III, and track the certificate. Start with our legal dispute resolution service.
Key takeaways
- Apply in Form XXVI; the officer issues a compounding notice in Form XXVII.
- Pay the entire amount within fifteen days of receipt of the notice; the certificate follows within ten days of receipt of the amount.
- Section 114 sets the sum at fifty per cent of the maximum penalty or seventy-five per cent of the maximum fine.
- Non-payment leads to prosecution after one month from the last date.
- Repeat offences within three years of an earlier compounding or conviction cannot be compounded.
Read next
- Sections 113-114 of the OSH Code: power of court to make orders and composition of offences
- Rule 177: manner of holding enquiry
- Rule 183: social security fund
- Forms XXIV to XXVII: audio-visual agreement, improvement notice and composition forms
Disclaimer: Based on the Occupational Safety, Health and Working Conditions Code, 2020 (as enacted) and, where noted, the Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (G.S.R. 345(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.