Get Salary, FnF Settlements Within 2 Days, As Per Revised Wage Code
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Get Salary, FnF Settlements Within 2 Days, As Per Revised Wage Code

According to the revised wage code, which is going to be in effect from July 1, a company will have to pay the salary and clear the full and final settlement dues within 2 days from the employee’s last working day. The last working day will be according to their employment terms and will follow their resignation or termination from the employment.

Wage Code, Get Salary, FnF Settlements Within 2 Days

India’s Revised Wage Code

Currently, companies are paying salary and settling the final dues within 45 to 60 days from the date of the last employment day of the employee. Even, in some cases, the FnF date is stretched up to 90 days.

Four labour law codes reformed and passed by the Parliament are the “Code on Wages, Industrial Relations Code, Social Security Code, Occupational Safety Health and Working Conditions Code (OSH).”

Labour law defines the new wage code as, “Where an employee has been – (i) removed or dismissed from service; or (ii) retrenched or has resigned from service, or became unemployed due to closure of the establishment, the wages payable to him shall be paid within two working days of his removal, dismissal, retrenchment or, as the case may be, his resignation.”

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Forming New Labour Law Codes

After assessing and reviewing the last 29 Central Labour Laws the new labour code is formulated. The government has planned to implement these new labour codes from July 1, but many states are still yet to assess the code, which should be done before the codes can come into effect.

Reports suggest, “According to Minister of State for Labour and Employment Rameshwar Teli’s written response to the Lok Sabha, only 23 states and union territories (UTs) have released the draft guidelines under the Code on Wages.”

Also, “Notwithstanding anything contained in sub-section (1) or sub-section (2), the appropriate Government may provide any other time limit for payment of wages where it considers reasonable having regard to the circumstances under which the wages are to be paid.”

There are many other modifications in the new labour laws according to which the Government is also increasing the working hours from 8-9 hrs to 12 hours.

Rishabh Sharma

Rishabh is an experienced content writer and editor, he is working for Viralbake to cover a diversified range of categories. His articles mainly focus on providing information, being a travel guide, educating others, and also making people aware of technology, after all, he is a technophile. When not writing he can be found gaming, watching movies, and travelling.

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