Section 80 of FA, 1948 : Section 80: Wages During Leave Period

Explanation using Example

Imagine a factory worker named Rohan who has been working consistently for the past month, except for a few days of approved overtime. Rohan decides to take his entitled leave under Section 78 of the Factories Act, 1948. According to Section 80, during his leave, he is entitled to receive wages that are calculated based on the average of his daily earnings from the previous month.

For instance, if Rohan worked for 20 days in the preceding month and earned a total of ₹10,000, excluding any overtime and bonus, but including dearness allowance and the benefits from concessional food grains provided by the employer, his daily average earning would be ₹500 (₹10,000 divided by 20 days).

During his leave period, Rohan's wages would be paid at this average daily rate. If the factory also offers concessional sales of food grains, the cash equivalent of this benefit would also be included in his leave wages, calculated as per the rules prescribed by the State Government.

If Rohan had not worked at all in the month immediately preceding his leave, his leave wages would be calculated based on the last month he did work.

This section ensures that workers like Rohan can take their entitled leave without suffering a financial penalty, thus providing financial security during their time off from work.