Section 89 - Registration of agreements

Employee compensation agreements must be registered with the competent authority; failure to register keeps full statutory liability and limits deductions.

Employers must send a memorandum of any lump-sum compensation agreement to the competent authority, which, after verifying genuineness and observing a seven-day notice period, records it in a prescribed register; the authority may rectify or refuse registration for inadequacy, fraud or undue influence and make orders about sums already paid. Registered agreements are enforceable under this Code despite the Indian Contract Act. Failure to send the memorandum renders the employer liable for full statutory compensation and limits deductions to half of amounts paid unless the competent authority directs otherwise.