Section 20: Deductions for absence from duty
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Permits proportionate deduction for absence and addresses concerted absence without due notice in specified cases.
Principal remaining provisions commenced on 21 November 2025 under S.O. 5322(E), read with the earlier partial commencement; check section-specific footnotes in the current India Code text.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
Finin2min analysis — what the section actually does
Operative clauses
- (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…
- 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.
Provisos, explanations & qualifications
- 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…
- 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.
Thresholds and timelines in the text
- 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…
Actors expressly appearing in the text
Employer, Employee / worker, Appropriate Government
Full statutory text — Section 20
20. Deductions for absence from duty.—(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.How to apply this provision
- Primary statutory test — (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.
- Additional operative limb — (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:
- Qualification / exception to test — 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…
- Numerical or timing control — 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…
- Central Rule mapping — 17. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
- Evidence file — retain facts and records proving the role/status of: Employer, Employee / worker, Appropriate Government.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
An employer configuring payroll for deductions for absence from duty should first identify the employee and wage period, then apply the exact provision and any linked rule. The system rule should be tested against a sample payslip and bank/payment record. A text point to test is: “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 employme” Also test the express qualification/proviso before concluding the result. Read the mapped Central Rule(s) 17.
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 20
What does Section 20 of the Code on Wages cover?
Permits proportionate deduction for absence and addresses concerted absence without due notice in specified cases.
What is the main legal requirement or power in Section 20?
The first operative clause identified from the official text is: “(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.” Read it with the remaining subsections and any proviso below.
Does Section 20 contain a proviso or explanation?
Yes. A qualification extracted from the official text is: “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…”
What time limit, percentage or amount appears in Section 20?
The provision contains this numerical/time expression: “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…” Apply it only in the clause and context in which it appears.
Which 2026 Central Rules are linked to Section 20?
The current concordance maps Section 20 to Central Rule(s) 17.
Is Section 20 currently operative?
Principal remaining provisions commenced on 21 November 2025 under S.O. 5322(E), read with the earlier partial commencement; check section-specific footnotes in the current India Code text.
Source & verification trail
Act: Code on Wages, 2019 — official India Code PDF ↗
Central Rules: Code on Wages (Central) Rules, 2026 — G.S.R. 343(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.