The five-year wait for gratuity is over… New Labor Code implemented in the country, every penny will be calculated in 2 days
New Labor Code: New Labor Code has been implemented in the country. This has brought about many changes. Like employees will get the final settlement within just 2 days of leaving the job. With this, the five-year wait for gratuity has also ended.
New Labour Code: The new labor code has come into effect in the country from April 1, 2026. These new rules are going to be a relief for crores of employed people. Now if you leave the job or are fired from the job, you will not have to wait for 45 days for your money. According to the new rules, the company will have to pay you your entire money within just 2 working days of leaving the company.
This provision has been made under Section 17(2) of ‘Code on Wages, 2019’. Till now, companies used to take 45 to 90 days for settlement after firing their employee or leaving the job. Due to this tall structure, the employees had to face a lot of trouble.
What will you get in full and final settlement?
After leaving the job, the employee will not only get the last month’s salary but will also get his leave money. In simple language, the full salary for the last days worked will be given. You will get money in lieu of the remaining holidays (Earned Leaves). If your company gives the past due bonus decided on the basis of the employee’s work performance, then that will also be given.
The five year wait for gratuity is over
According to the rules till now, gratuity received by the company was given to the employee after working for five years. But according to the new rules, a big change has been made in this also. Now, this limit has been reduced to just 1 year for fixed-term employees. It means clearly that if you work in any company even for one year, then the company will have to pay you gratuity. The entire gratuity amount will have to be paid to the company within one month of leaving the job.
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Different opinions of people on new rules
There are two types of talks going on regarding the new labor code. A section says that reducing in-hand salary in times of inflation will create difficulties. This will also affect everyday expenses. At the same time, some people believe that even if the salary will be a little less. But this money will be useful to them after retirement.
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