(1) The Compounding Officer on receipt of an application shall examine all the documents, the nature of breaches of the Act and these rules and shall pass a detailed order within seven working days from receipt of the application. The Compounding Officer while determining the amount of compounding fees shall have regard to the seriousness of breaches, nature of an offence and evidence on record. The Compounding Officer shall on receipt of the compounding fees make the order for deposit of compounding fees and after deposit of such amount, the offence shall be compounded and the Compounding Officer shall make necessary entries in a register kept for that purpose.
(2) An order passed by the Compounding Officer shall be forwarded to the concerned local Inspector for serving the same to the defaulting employer within seven working days.
(3) The maximum fees for compounding of offence may be imposed by the Compounding Officer shall not be less than seventy five per cent of the maximum fine specified for such offence under the Act.
(4) In calculating the period for filling of prosecution under section 33, the time period taken for compounding of offence shall be excluded.