Sections 113-114 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.
Section 113 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) lets a court, after convicting the employer of a mine, factory or dock, order the employer to fix the problem that led to the offence. Section 114 lets listed penalties and offences be settled by composition, a payment to a notified officer, at a fixed percentage of the maximum.
Section 113: after conviction of the employer of a mine, factory or dock, the court may order remedial measures within a stated period; if the order is not fully complied with by the end, a further offence arises: imprisonment up to six months, or fine up to Rs 100 for every day, or both. Section 114: listed penalties can be compounded at 50 per cent of the maximum penalty, and listed offences at 75 per cent of the maximum fine; a person who does not comply with the officer's order pays an extra 20 per cent; the amounts go to the social security fund; and there is no composition for a repeat within three years.
Sections 113 and 114 at a glance
| Provision | Content |
|---|---|
| 113(1) | On conviction of the employer of a mine, factory or dock, the court may order measures to remedy the matters, within a period it specifies (extendable) |
| 113(2) | No liability for continuance during the period; if not fully complied with on expiry, a further offence: up to 6 months, or fine up to Rs 100 a day, or both |
| 114(1)(a) | Penalty compounded at 50% of the maximum penalty |
| 114(1)(b) | Offence compounded at 75% of the maximum fine |
| 114(2) | On composition, discharge and no further proceedings |
| 114(3) | Non-compliance with the officer's order: penalty of 20% of the maximum penalty or fine, in addition |
| 114(4) | Composition money is credited to the fund under section 115(1) |
| 114(5) | No composition for a second or subsequent offence within three years of an earlier composition or conviction |
Section 113: court orders after conviction
Who. The employer of a mine, factory or dock. Section 113 does not name other establishments.
Order (113(1)). In addition to any punishment, the court may by order in writing require the employer, within the period specified (which the court may extend from time to time on application), to take measures specified in the order for remedying the matters in respect of which the offence was committed.
Consequence (113(2)). The employer is not liable under the Code for the continuance of the offence during the period or extended period. But if, on expiry, the order has not been fully complied with, the employer is deemed to have committed a further offence, punishable with imprisonment up to six months, or fine up to one hundred rupees for every day after expiry on which the order has not been complied with, or both.
The trade-off is useful: the order gives time to cure, without running daily liability during that period. A company that asks for an extension should do so before expiry and on an application, as the text requires. This section is an offence listed for composition: the further offence under 113(2) appears in the section 114(1) list.
If a court order has been made against you, our legal dispute resolution team can help you plan the remedial work and apply for time.
Section 114: composition
What can be compounded. Section 114(1) begins "notwithstanding anything contained in the Code of Criminal Procedure, 1973". That Code was replaced by the Bharatiya Nagarik Suraksha Sanhita from 1 July 2024. Composition covers the following, either before or after the enquiry or the institution of prosecution:
| Kind | Provisions listed |
|---|---|
| Penalties | Section 12(3), section 94, section 96, section 97(1), section 99, section 106 |
| Offences | Section 97(2), section 100(1), section 101, section 103(1)(b), section 105, section 113(2) |
The scan of section 114(1) also contains a reference to "sub-section (3)" in the middle of the list whose meaning is not clear from the text, so this article does not rely on it.
Notice what is not in the list: sections 95, 98, 102, 103(1)(a) (death) and 104. Offences there cannot be settled by composition.
Who compounds. Such officer of the appropriate Government as that Government notifies, in the manner it prescribes.
How much.
| Case | Composition sum |
|---|---|
| Penalty | 50 per cent of the maximum penalty |
| Offence | 75 per cent of the maximum fine |
Worked examples from the text.
- Section 94 penalty: maximum Rs 3 lakh, so composition at 50% is Rs 1.5 lakh.
- Section 96(1) penalty: maximum Rs 1 lakh, so Rs 50,000.
- Section 103(1)(b) serious bodily injury: maximum fine Rs 4 lakh, so 75% is Rs 3 lakh.
- Section 105 offence: maximum fine Rs 1 lakh, so Rs 75,000.
These are computed from the statutory maxima and the officer's notified process governs the actual amount.
Effect (114(2)). The person is discharged of the penalty or offence and there is no further proceeding for it.
Non-compliance (114(3)). A person who fails to comply with the officer's order is liable to pay, in addition, a penalty equal to 20 per cent of the maximum penalty or fine. Section 111 lets the officer under that section deal with this penalty.
Credit (114(4)). The composition money goes to the fund under section 115(1) for unorganised workers; see sections 115 and 116.
Bar (114(5)). Sub-section (1) does not apply to a penalty or offence committed for a second or subsequent time within three years from the date of the penalty or offence, (a) which was earlier compounded or (b) for which the person was earlier convicted.
Rule 182 of the Central Rules, 2026: the steps
Where the Central Government is the appropriate Government, rule 182 sets the steps. Under the text:
- The notified officer, on an application in Form XXVI by an accused person wanting to compound a compoundable offence, issues a compounding notice in Form XXVII electronically (182(1)).
- The person applies in Part III of Form XXVII, electronically, and deposits the entire compounding amount within fifteen days of receiving the notice (182(2)).
- The officer issues a composition certificate in Part IV of Form XXVII within ten days of receiving the amount (182(3)).
- If the person fails to deposit in time, prosecution is instituted after one month from the last date of the specified time (182(4)).
- Where prosecution is already pending, the officer sends a copy of the order to the court for further action (182(5)).
See our article on rule 182. Where a State Government is the appropriate Government, its own rules govern.
Example. A warehouse is charged under section 96 for not producing registers. Before the enquiry, the employer applies in Form XXVI. The compounding notice comes with the amount, which is 50% of Rs 1 lakh. The employer deposits it within 15 days and receives the certificate, which ends the matter. A similar default within three years would not be eligible for composition.
Need help deciding whether to compound?
Composition saves time but it is not open for every charge, and a second lapse within three years loses the option. Our legal dispute resolution team can help you weigh composition against contesting, and handle the application.
Key takeaways
- Section 113: court can order remedial measures after conviction of a mine, factory or dock employer; non-compliance is a further offence.
- Section 114: 50% of maximum penalty or 75% of maximum fine, at the listed provisions only.
- Sections 95, 98, 102, 103(1)(a) and 104 are not in the composition list.
- No composition for a repeat within three years; non-compliance with the officer's order adds 20%.
- Rule 182: Form XXVI to apply, Form XXVII notice, 15 days to pay.
Read next
- Sections 111 and 112: officers imposing penalty and jurisdiction of courts
- Sections 115 and 116: social security fund and delegation of powers
- Rule 182: manner of compounding of offences
- Penalties under the Factories Act: sections 92 to 106
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.