Section 80 of the Factories Act 1948 - Wages During Leave Period
Section 80 of the Factories Act, 1948 prescribed how wages were calculated when a worker took leave allowed under the Act. The provision is important for understanding the earlier statutory system of paid annual leave in factories.
What Section 80 Provided
Section 80 dealt with the rate of wages payable for leave allowed under Sections 78 and 79 of the Factories Act, 1948. In simple terms, a worker taking statutory leave was entitled to wages based on the daily average of full-time earnings for the relevant preceding period.
| Component | Position under Section 80 |
|---|---|
| Basic calculation | Daily average of total full-time earnings for days actually worked during the immediately preceding month. |
| Included | Dearness allowance and the prescribed cash equivalent of benefits arising from concessional sale of food grains and other articles. |
| Excluded | Overtime earnings and bonus. |
| No work in preceding month | The last earlier calendar month in which the worker actually worked was used for calculating the daily average. |
Section 80 - Wages During Leave Period
Sub-section (1): For leave allowed under Section 78 or Section 79, a worker was entitled to wages at a rate equal to the daily average of total full-time earnings for the days actually worked during the month immediately preceding the leave. Overtime and bonus were excluded, while dearness allowance and the cash equivalent of the advantage from concessional sale of food grains and other articles were included.
If the worker had not worked on any day during the immediately preceding calendar month, the calculation was based on the last preceding calendar month in which the worker had actually worked, applying the same inclusions and exclusions.
Sub-section (2): The cash equivalent of the benefit from concessional sale of food grains and other articles was to be computed as prescribed, on the basis of the maximum quantity admissible to a standard family.
Sub-section (3): The State Government could make rules governing the manner of calculating that cash equivalent and the registers to be maintained by factories for compliance.
Meaning of "Standard Family" and "Adult Consumption Unit"
For Section 80, a standard family meant a worker, the worker's spouse and two children below fourteen years of age, together requiring three adult consumption units.
An adult consumption unit referred to the consumption unit of a male above fourteen years. The statutory explanation assigned proportionate consumption units to a female above fourteen years and to a child below fourteen years for the purpose of the calculation.
Relationship with Sections 78 and 79
Section 78 governed the application of the Chapter dealing with annual leave with wages. Section 79 dealt with annual leave with wages. Section 80 supplied the wage-calculation rule for leave falling within that statutory scheme.
Current Law - Section 32 of the OSHWC Code 2020
The present central statutory framework is found in Section 32 of the Occupational Safety, Health and Working Conditions Code, 2020. Among other matters, Section 32 deals with eligibility for annual leave with wages, the rate at which leave is earned, carry-forward of leave and specified circumstances in which wages in lieu of leave or leave encashment are payable.
Historical Amendment Notes
The text of Section 80 was amended over time, including amendments by Act 94 of 1976 and Act 20 of 1987. These amendments changed the cross-reference to Sections 78 and 79, clarified entitlement to wages and inserted the proviso dealing with a worker who had not worked during the immediately preceding calendar month.
Practical Reading of the Provision
For disputes, records or legal issues relating to a period when the Factories Act, 1948 governed the matter, Section 80 may remain relevant to understanding the rights and liabilities arising during that period. For current compliance after commencement of the OSHWC Code, readers should check Section 32 of the Code together with applicable rules, notifications and State-specific provisions.
Note: This page is an informational legal reference. The applicable law can depend on the relevant period, establishment, worker status, State rules and transitional provisions.