(1) If the person committing an offence under this Act is a company, the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
     Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
     (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of any director, manager, managing agent or any other officer of the company, such director, manager, managing agent or such other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
     Explanation.--For the purpose of this section--
         (a) "company" means any body corporate and includes a firm or other association of individuals; and
         (b) "director", in relation to a firm, means a partner in the firm.
                                                    STATE AMENDMENTS
    Uttar Pradesh.--
    Insertion of new Section 25-A.--After section-25 of the principal Act the following section shall be inserted, namely:--
    "25-A. (1) Any offence committed under this Act, punishable with fine or imprisonment up to six months or with both may, on an application of the accuses person, either before or after institution of any prosecution, be compounded by such Competent Officer, as the State Government may by notification, specify for a sum of fifty percent of the maximum fine provided for such offence, in such manner as may be prescribed:
Provided that the provision of compounding under this section shall be available only for commission of first offence.
    (2) Every application for the compounding of an offence shall be made in such manner as may be prescribed.
    (3) Where any offence is compounded before the institution of any prosecution, no prosecution shall be instituted in relation to such offence, against the offender in relation to whom the offence is so compounded.
    (4) Where the composition of any offence is made after the institution of any prosecution, such composition shall be brought by the officer referred to in sub-section (1) in writing to the notice of the court in which prosecution is pending and on such notice of the composition of the offence being given, the person against whom the offence is so compounded shall be discharged."
    [Vide the Uttar Pradesh Act 14 of 2018, s. 5]
Union Territory Of Ladakh
After section 25, insert-
        "25A. Compounding of offences.--(1) Any offence punishable under sub-sections (1) and (2) of section 22 and section 24 may, either before or after the institution of the persecution, on an application by the alleged offender, be compounded by such officer or authority as the appropriate Government may by notification in the official Gazette, specify in this behalf for such amount as specified in the Table below:--
                                    TABLE
S. No. Compounding amount
1 2 3
1 22(1), 22(2) and 24 Number of workmen employed in theindustryAmount not exceeding
1 to 50 Rs. 5000/-
51 to 100 Rs. 8,000/-
101 to 500 Rs. 12,000/-
    Provided that the appropriate Government may, by notification in the Official Gazette, amend the said specified compounding amount:
    Provided further that the offences of the same nature committed by the same offender for more than three occasions shall not be compoundable:
    Provided also that such offences shall be compounded only after the alleged offender has acted to the satisfaction of such officer or authority that such offence is not continued any further:
    Provided also that when an offence is compounded on an application by the principal employer or contractor, then seventy-five per cent. of the compounding amount received from him, shall be paid to the concerned employee or equally amongst the employees and if any employees are not identifiable, then the remaining amount shall be deposited in such manner as may be notified by the appropriate Government.
    (2) Where an offence has been compounded under sub-section (1), no further proceedings shall be taken against the offender in respect of such offence and the offender, if in custody, shall be released or discharged."
[Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, Notification no. S.O. 1123(E), dated (18-3-2020) and vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, Notification no. S.O. 3774(E), dated (23-10-2020).]