New Labor Laws: Under the new rule, if an employee quits or is fired, the company will have to pay the salary and full dues within 48 hours. Find out how much the employees will benefit.

New Labor Laws: Recently, four new labor laws have been implemented in the country. One of these rules concerns the full and final settlement after leaving a job. Previously, it took several weeks to receive salary and other dues after leaving a job. Often, companies would withhold payment under the guise of clearance, leaving the employee waiting for months. The government has made a major change to the Labor Code to eliminate this problem.

Now, if an employee quits, is relieved, or is laid off, the company will have to pay the full amount within 48 hours. This will include salary, leave encashment, bonus, and other dues. The new system is more beneficial for those who relied on money before finding a new job. Find out how much the benefit will be

Full payment will be made immediately under the new rule

Employees will directly benefit from the new label law. Its biggest advantage is that employees will receive their last month's salary and all outstanding balances within 48 hours. Previously, companies used to delay clearances, paperwork, or internal approvals, but now they will be required to make payments within the stipulated time.

This means that employees changing jobs will not face financial difficulties during the transition. Leave encashment and outstanding incentives will also be cleared within this time. This rule serves as a safety net for employees who are suddenly laid off. This immediate payment will ease the pressure of responsibilities like household expenses and EMIs.

How will PF, gratuity, and other amounts be received?

The new rule clearly states that the process for PF, gratuity, and settlement benefits will be faster and more transparent. Companies will now have to prioritize PF transfers and gratuity payments. This allows employees to access their funds without waiting. Previously, PF transfers took weeks. Now, the digital process will significantly reduce this time. Retirement and long-term service employees will also receive their gratuity within the stipulated timeframe, which will positively impact their savings and planning. The purpose of this rule is to ensure that no employee's funds are held by the company.