Govt revises Offence Compounding Rules under Code on Wages, 2019

On 19 August 2026, the Ministry of Labour and Employment issued a notification revising its earlier notification relating to the on compounding of offences under the Code on Wages, 2019 , clarifying that offences other than those punishable with imprisonment only or with imprisonment and fine may be compounded, while offences carrying imprisonment remain outside the scope of compounding. The revision clarifies that Deputy Chief Labour Commissioners and other designated officers can compound offences under the Code on Wages, 2019 only where the offence is not punishable with imprisonment alone or with imprisonment and fine. The earlier notification dated 12 May 2026 had authorised designated officers under Section 56 of the Code on Wages, 2019 to compound offences punishable with imprisonment only or with imprisonment and fine. Consequently, offences carrying imprisonment as a punishment cannot be compounded under the revised framework. Also Read: A Complete Guide to Four Labour Codes: Key Reforms, Compliance Checklists & Impact on India’s Workforce [Corrigenda of Notification under Code on Wages, 2019, dated 19-8-2026]