Employees to get salary, full and final settlement in 2 days after resignation, says new wage code
By Team Newsable | First Published Jul 1, 2022, 9:00 AM ISTThe new pay code will have an influence on all of the previously identified variables if these labour regulations are applied. Because these are still early rumours, nothing solid should be thrown about until the government actually publishes the guidelines.
The New Wage Code requires employers to pay the employee's due salary and complete and final settlement of wages within two days of the employee's last working day. According to the new laws, the corporation must pay the dues within two days after a resignation, dismissal, or termination from employment and services. Currently, most corporations need 45 to 60 days to finalise the entire and final settlement. It is a widespread practise among most businesses. However, with the new pay law in place, this is all poised to change.
The new pay code will have an influence on all of the previously identified variables if these labour regulations are applied. Because these are still early rumours, nothing solid should be thrown about until the government actually publishes the guidelines.
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"Where an employee has been - I removed or dismissed from service; or (ii) retrenched or has resigned from service, or became unemployed due to the 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," according to the new wage code under labour law.
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The newly mandated pay regulations include a number of additional changes that will result in higher work hours, PF (Provident Fund) contributions, and lower in-hand income for employees.
Companies can raise their working hours from 8 to 12 hours each day under the new legislation. They must, however, provide the staff with three weekly days off. As a result, the number of working days in a week will be decreased to four, but the overall number of working hours in a week will not be changed. The new pay rule requires a total of 48 working hours each week.
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At the moment, 23 states have pre-published draught rules on these laws, and the Centre has finished the process of finalising draught regulations on these codes in February 2021. The central government announced four labour codes on August 8, 2019, namely the Wage Code 2019, the Industrial Relations Code 2020, the Social Security Code 2020, and the Occupational Safety, Health, and Working Conditions Code 2020.
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