Good news for all the working professionals who are planning to leave an organisation as they won’t have to wait for full and final settlement of wages for months from their last employer. Unlike the current scenario in which the timeline goes up to 45 to 60 days or even 90 days in a few companies.
However, according to a NDTV report, the new wage code under the labour law states that a company must pay the full and final settlement of wages and dues within two days of an employee’s last working day following his/her resignation, dismissal or removal from employment and services.
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.
-New wage code
There are total four labour codes which were passed in the Indian parliament on 29th of September in 2020. According to a Firstpost report, these codes will replace 29 labour laws, which have not been amended since India’s independence. The codes are as follows:
1. Code on Wages
2. Industrial Relations Code
3. Social Security Code
4. Occupational Safety, Health and Working Conditions Code
The new labour codes will be implemented by the Centre with effect from July 1.
According to the new laws, companies can increase the working hours from 8-9 hours a day to 12 hours. However, they will have to grant three days off a week to employees. The new wage code has made it compulsory for the companies to have 48 total working hours per week.
The take-home salary of the employees will also undergo changes. The basic salary will be at least 50 per cent of the gross monthly salary under the new wage code. It will increase the contributions of Provident Fund (PF) made by employees and employers.
So, if you are planning to draft a resignation letter, hit the send button and relax.
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