Section 20 of the Code on Wages, 2019: Deductions for Absence from Duty

Section 20 of the Code on Wages, 2019 regulates when an employer may deduct wages because an employee was absent from the place where the employee was required to work. It also limits the ordinary deduction to the proportion of the wage-period for which the employee was absent.

Current legal status: Sections 1 to 41 of the Code on Wages, 2019, including Section 20, were brought into force with effect from 21 November 2025 by Central Government notification S.O. 5322(E).
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Text of Section 20 - Deductions for Absence from Duty

20. (1) Deductions may be made under clause (b) of sub-section (2) of section 18 only on account of the absence of an employee from the place or places where by the terms of his employment, he is required to work, such absence being for the whole or any part of the period during which he is so required to work.

(2) The amount of such deduction shall in no case bear to the wages payable to the employed person in respect of the wage-period for which the deduction is made in a larger proportion than the period for which he was absent bears to the total period within such wage-period during which by the terms of his employment he was required to work:

Provided that, subject to any rules made in this behalf by the appropriate Government, if ten or more employed persons acting in concert absent themselves without due notice (that is to say without giving the notice which is required under the terms of their contracts of employment) and without reasonable cause, such deduction from any such person may include such amount not exceeding his wages for eight days as may by any such terms be due to the employer in lieu of due notice.

Explanation. For the purposes of this section, an employee shall be deemed to be absent from the place where he is required to work if, although present in such place, he refuses, in pursuance of a stay-in strike or for any other cause which is not reasonable in the circumstances, to carry out his work.

Meaning and Scope of Section 20

Section 20 must be read with Section 18 of the Code on Wages, 2019. Section 18(2)(b) permits a deduction from wages for absence from duty, while Section 20 specifies the conditions and limits governing that deduction.

The provision applies where the employee is absent from the place or places at which the terms of employment require the employee to work. The absence may cover the whole working period or only part of it.

Ordinary Deduction Must Be Proportionate to Absence

Under Section 20(2), an ordinary deduction for absence cannot exceed the proportion that the period of absence bears to the total period during the relevant wage-period for which the employee was required to work. In practical terms, the provision prevents an employer from making an ordinary absence deduction that is disproportionate to the actual period of absence.

Example: If an employee is required to work for eight hours on a working day and is absent for two hours, Section 20(2) requires the deduction to remain proportionate to the period of absence, subject to the terms of employment and other applicable provisions of the Code.

Special Rule for Concerted Absence by Ten or More Employees

The proviso to Section 20(2) deals with a specific situation in which ten or more employed persons, acting in concert, absent themselves without the notice required by their contracts of employment and without reasonable cause. Subject to rules made by the appropriate Government, the deduction may then include an amount not exceeding wages for eight days if that amount is due to the employer in lieu of notice under the applicable terms of employment.

This is different from the ordinary proportional deduction rule. The additional amount is not automatic: the statutory conditions in the proviso must be satisfied, and the proviso itself makes the rule subject to rules framed by the appropriate Government.

When an Employee Present at the Workplace May Be Deemed Absent

The Explanation to Section 20 provides that an employee may be treated as absent even while physically present at the required workplace if the employee refuses to carry out work in pursuance of a stay-in strike or for another cause that is not reasonable in the circumstances.

For the statutory context, see Section 18 - deductions which may be made from wages, Section 19 - fines, and Sections 21 and 22 - deductions for damage, loss and services rendered.

Official Government material: Code on Wages, 2019 - Ministry of Labour and Employment and S.O. 5322(E), dated 21 November 2025 - commencement notification.

Note: The application of Section 20 may depend on the employee's terms of employment, the applicable rules and the identity of the "appropriate Government" under the Code. This page is a general legal information resource and should be read with the current statutory text and applicable rules.