Changing jobs or leaving your job for any reason is a normal part of every working person's career. But, employees often struggle to withdraw their earned money from the old company. In the till now system, employees had to wait for 40 to 45 days, and sometimes even as long as 90 days, for their Full and Final (FnF) settlement. During this period, going through financial crisis and mental stress was a common thing. But now this old and tired system is going to change. Under the new labor law of the government, now employees will get their entire outstanding money within just two working days of leaving the job.

The hassle of 45 days is over, now the accounts will be settled in just 2 days

Earlier, when an employee resigned or was fired from the company, it would take months to complete the accounting paperwork. The employee was torn between the pressure of starting a new job and making rounds of the HR of the old company. Waiting for more than 45 days for one's salary directly affected the household budget. But now the picture is going to change completely. The new rule, which is going to be implemented from April 1, 2026, will directly provide a huge relief to the working class. According to the new provision, under any circumstances, after the departure of the employee, it will be mandatory for the company to make his full payment within just two days. With this, employees will not have to depend on companies for their own savings.

What is this new labor law?

This important change has been brought under 'Code on Wages, 2019'. Every situation in which an employee's journey ends with the company has been included in the scope of this new law. Whether you have resigned of your own free will, been fired from your job for some reason, or the company itself has closed down for some reason; In any case, your dues are guaranteed to be paid in full within two working days. This simply means that now companies will not be able to delay files for weeks in the name of completing accounts. This law makes the rights of employees stronger and safer than ever before.

What is included in the Full and Final (FnF) list?

When we talk about full and final settlement, it does not just mean your last month's salary. Many more important things are added to this, which the company will now have to pay within the stipulated time limit:

1. Final Salary: Your full salary for all the days you have worked up to your last working day.
2. Leave Encashment: Cash amount received in lieu of leave that you have not taken during your tenure.
3. Bonuses and Incentives: Your pending bonus decided based on your good performance and company policy.
4. New rule of gratuity: In some special cases, provision for gratuity has been made even after one year of service. According to the rules, it is necessary to pay it within 30 days. This will act as an additional financial shield for the employees.
5. Reimbursement: Travel expenses incurred for office work or any other expenses for which you paid from your own pocket, will also be refunded in this amount.
6. Necessary deductions: From this entire amount, tax, any advance salary taken earlier, loan running in your name or deduction on account of non-return of company property (like laptop, ID card) will also be adjusted during this period.

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