New Wage Code: Employees to get a salary, FnF settlement in 2 days after the resignation
New Delhi: The New Wage Code directs a company to pay the due salary and full and final settlement of wages within two days of the last working day of the employee. Most companies currently take 45 days to 60 days to process the full and final settlement. It is a common practice followed by most firms. However, this is all set to change with the new wage code in place.
According to a new rule, The dues will have to be paid by the company in two days in case of resignation, dismissal, or removal from employment and services.
On the new wage code, experts have said, if the central government implements four labor codes on wages, social security, industrial relations, and occupation safety, health, and working conditions from tomorrow (July 1), then there could be significant changes in salary restructuring, PF and gratuity component, working hours, and Earned Leaves.
“If these labor codes are implemented, the new wage code will have an impact on all of the previously mentioned factors. Because these are still early speculations, nothing concrete should be inferred until the government formally announces the rules,” Experts added.
On August 8, 2019, the central government notified four labour codes, namely the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health, and Working Conditions Code, 2020.
(Vinayak)
