5 Answers
Dear Client,
At present, there does not exist any universal law in India which requires every employer to complete the final settlement process within 48 hours of the resignation by the employee. Even though the Labour Codes provide for the payment of wages at the appropriate time, the particular clause of settling within two days has not been made applicable to all the States equally and it may not be applicable to all establishments and to all types of employees. Consequently, it would depend upon the laws in the particular State, your employment agreement and the rules of the firm whether your small consultancy should pay your dues within 48 hours of your resignation. However, your employer cannot unreasonably withhold your dues without any lawful reason.
I hope this helps and if you have any further issues do not hesitate to contact us.
Dear sir or mam, as per your query,
Yes, you are entitled to your full & final settlement after resignation.
As per the new Labour Law, under the Code on Wages,2019 and most state rules: Full and Final settlement must be paid within 2 working days from the date of your last working day, after resignation.
This law is for all companies, big and small. Even if there are less than 10 peaple, the company still cannot stop your salary. It is illegal.
You are required to connect with OLQ Team and provide necessary details so that we can guide you on this matter.
Dear Client,
Regarding your query, there isn't a general rule that requires every employer to release the full and final settlement within 48 hours of resignation. Although Section 17(2) of the Code on Wages, 2019 provides for payment of wages within two working days once the provision is brought into force, it is not yet uniformly enforceable across all states, as the Labour Codes are still pending implementation. At present, the timeline is governed by the applicable state labour laws and the terms of your employment contract. This applies to small businesses and consultancies as well. However, an employer cannot indefinitely withhold your earned salary or any other lawful dues simply because you have resigned.
For any further legal assistance, feel free to contact OLQ.
Dear Client,
There is no specific law that requires every employer to pay Full and Final settlement within 48 hours of resignation. The timeline depends on the applicable State Shops and Establishment Act, your employment contract, and other labour law.
If your employer withholds your earned salary, or F&F without a proper reason, you can send a legal notice and file a complaint before the labour commission to recover your dues. An employer cannot legally withhold your earned wages simply because you resigned.
Hope this helped. For further legal assistance feel free to contact us.
Dear Client,
Yes it applies to all the commercial establishments including small business like consultancy firms ,sale agencies etc., and is clearly mentioned in Section 17(2) of the Code on Wages,2019 that employers are legally required to pay all final wages within two working days (48 Hours) of the employees last working day.
If the employer does not comply to it , inspite of your repeated request then you can send an email to the HR and Managemnet Department of your firm to pay you the final wages mentioning Section 17(2) of the Code on Wages, also attach the attempts made by your side.
After this if the company ignores your request, file a formal complaint in the State Labour Commision in your State, where the strict action is taken against the firm. You also have the option of complaining in the online portal of Ministry of Labour & Employment Grievcance portal.
Finally if you dont get any help for your problem you can send a legal notice to the employer stating the outstanding amount which is not paid and further legal action can be taken against the employer of the firm.