Resigned? Here's what labour laws say about final settlement
New Indian labour codes aim to standardize the exit process for employees by mandating that final wages be paid within two working days of resignation or termination. This change addresses the common uncertainty and financial stress employees face when waiting for their final settlement.
Why it matters
It provides clarity on workers' rights and financial security during the transition between jobs, potentially reducing economic hardship for employees.
You have a new job. But what about the money owed by the old one?Changing jobs is usually associated with excitement. There may be a better role, higher salary, new city, new team or simply a fresh start. But between leaving one organisation and joining another, many employees face a practical concern that does not always get enough attention: when will the previous employer release the final dues?For an employee, the last salary from the previous organisation is not just a payroll entry. It may be needed for rent, relocation expenses, family commitments, education fees, loan repayments or simply to manage the gap before the first salary from the new employer.
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