Section 84 of Factories Act 1948 - Power to Exempt Factories
Updated: 26 September 2026
What Section 84 of the Factories Act provided
Section 84 formed part of Chapter VIII of the Factories Act, 1948, dealing with annual leave with wages. It empowered the State Government to exempt a factory from all or any provisions of that Chapter where the factory's own leave rules provided benefits that were, in the Government's opinion, not less favourable than the statutory benefits.
Historical text of Section 84
84. Power to exempt factories. Where the State Government is satisfied that the leave rules applicable to workers in a factory provide benefits which in its opinion are not less favourable than those for which this Chapter makes provision, it may, by written order, exempt the factory from all or any of the provisions of this Chapter, subject to such conditions as may be specified in the order.
Explanation. For deciding whether the benefits provided by any leave rules are less favourable than those provided by the Chapter, the totality of the benefits is to be taken into account.
The Explanation was inserted by Act 94 of 1976 with effect from 26 October 1976. Chapter VIII had earlier been substituted by Act 25 of 1954 with effect from 7 May 1954.
Meaning and scope of the former Section 84
- Authority: The power belonged to the State Government.
- Threshold: The Government had to be satisfied that the factory's leave rules gave benefits that were not less favourable than the statutory scheme.
- Totality test: The comparison was not confined to one isolated leave benefit. The overall package of benefits had to be considered.
- Form of exemption: The exemption had to be made by a written order.
- Conditions: An exemption could be made subject to conditions specified in the order.
- Extent: The exemption could cover all or only some provisions of the former Chapter VIII.
Current law from 21 November 2025
Section 32 - Annual leave with wages: Section 32 now contains the principal annual-leave-with-wages provisions under the Code. Among other conditions, a worker is generally entitled to annual leave with wages after working 180 days or more in the calendar year, at the rates and subject to the conditions specified in that section.
Section 127 - Power to exempt in special cases: The appropriate Government may, by notification and subject to stated conditions, restrictions and periods, direct that all or any provisions of the Code, rules or regulations do not apply to an establishment or class of establishments. The section also contains a State Government power concerning specified new factories where the statutory public-interest conditions are satisfied.
Sections 128 and 129: The Code separately provides exemption powers for public emergency, disaster or pandemic situations and for qualifying public institutions, subject to the requirements stated in those provisions.
Section 84 and the present position
The old Section 84 was a focused exemption provision tied to Chapter VIII leave benefits under the Factories Act. The current Code reorganises the subject. A present-day question concerning annual leave, exemption, or the continuing effect of an earlier Factories Act order should therefore be examined under the OSHWC Code, its repeal and savings clause, the applicable rules, and any relevant Central or State notification.
Official legal sources
Practical note
For a matter arising before 21 November 2025, or involving an exemption order, accrued right, proceeding, liability, or other saved matter under the repealed law, the historical Factories Act provisions may remain relevant depending on the facts and the applicable savings clause. For current compliance, users should verify the OSHWC Code, applicable rules, and the latest notification of the appropriate Government.