Good News! As soon as you leave the job, you will get full money within 2 days, the government’s new labor code will curb the arbitrariness of the companies.

Changing jobs or leaving your job for any reason is a normal part of every working person’s career. But, employees often struggle to withdraw their earned money from the old company. Under the current system, employees had to wait for 40 to 45 days, and sometimes as long as 90 days, for their Full and Final (FnF) settlement. During this period, going through financial crisis and mental stress was a common thing. But now this old and tired system is going to change. Under the new labor law of the government, now employees will get their entire outstanding money within just two working days of leaving the job.

The hassle of 45 days is over, now the accounts will be settled in just 2 days

Earlier, when an employee resigned or was fired from the company, it would take months to complete the accounting paperwork. The employee was torn between the pressure of starting a new job and making rounds of the HR of the old company. Waiting for more than 45 days for one’s salary directly affected the household budget. But now the picture is going to change completely. The new rule, which is going to be implemented from April 1, 2026, will directly provide a huge relief to the working class. According to the new provision, under any circumstances, after the departure of the employee, it will be mandatory for the company to make his full payment within just two days. With this, employees will not have to depend on companies for their own savings.

What is this new labor law?

This important change has been brought under ‘Code on Wages, 2019’. The scope of this new law includes every situation in which an employee’s journey ends with the company. Whether you have resigned of your own free will, been fired from your job for some reason, or the company itself has closed down for some reason; In any case, your dues are guaranteed to be paid in full within two working days. This simply means that now companies will not be able to delay files for weeks in the name of completing accounts. This law makes the rights of employees stronger and safer than ever before.

What is included in the Full and Final (FnF) list?

When we talk about full and final settlement, it does not just mean your last month’s salary. Many more important things are added to this, which the company will now have to pay within the stipulated time limit. First of all, it includes your last salary, which is till your last working day. Along with this, ‘Leave Encashment’ i.e. cash amount received in exchange of your remaining leaves is also included. Not only this, the bonus and incentive decided on the basis of your good performance will also be available within this time frame.

The new rules regarding gratuity are also much discussed. Now in some special cases, a provision has been made for gratuity even after one year of service, which is required to be paid within 30 days. Apart from this, reimbursement of expenses incurred due to office work will also be a part of this settlement. However, out of this entire amount, necessary deductions like tax, advance salary taken earlier or non-return of company property (laptop, ID card) will also be adjusted during this period.