After the implementation of the new labor code, the employees will get full money under full and final only after 2 days of leaving the job. There will be no need to wait long for this. Also, the newly joining employees will get the first salary soon.
New Delhi. The new labor code is going to come into force from the 1st of July. Its implementation will have a significant impact on all the employees. A good thing has been included in this new labor code that after any employee leaves the company, he will get full money, whatever the company would have to owe. According to the current code, till now this full and final payment takes 30 to 60 days (average 45 days).
There are many other things in the new labor code in the interest of the employees, such as some changes related to his salary, social security and health, etc. Although after the implementation of this new labor code, the in-hand salary of the employees will be reduced, but the contribution in PF will increase. The increased contribution will be only on the employee’s side, but the company will also deposit the same amount in the employees’ account.
How will the payment be settled?
According to media report in the Code on Wages of 2019, when the wages will be paid to the employees, it has been explained in detail. Payment can be daily, weekly, economic or monthly. It is important to note that this (Code on Wages, 2019) excludes Statutory Bonus from the scope of Wages.
Talking about the present or before 1st July 2022, then the Provisions of Payment of Wages Act, 1936 is in force. Under its purview, only such employees have been told about the wages and their settlement, whose wages do not exceed Rs 24,000 per month. It also mentions bonuses along with salaries and allowances. According to the conditions of the job, the terms of their payment have been given.
The new labor code includes all employees in the new code,
There is no limit on the salary of the employees for the payment of wages or its settlement. Meaning all types of employees will come under it. Regarding full and final settlement, it has been said that wages should be paid to the employees within 2 days of leaving the company, dismissal, retrenchment and resignation. At present, the rules of most states are applicable on the payment and settlement of wages. These do not include ‘resignation’.
Some states, such as Tamil Nadu and Puducherry, have rules about the category of resignation. The rules of other states, such as Maharashtra and Tripura, include termination of the employee on behalf of the company for payment within 2 days.
The wage period is not more than one month,
The wages of the employees joining the job have also been told about this labor code. According to this, the wage settlement should be done within 7 days of the next month. The duration of the wedges cannot exceed one month. At present, every company has a different cut-off date for the calculation of salary. If an employee joins after this cut-off date, then most of the companies make payment by adding the wages of the remaining days of that month with the wages of the next month.
For example, suppose the cut-off day for salary calculation is 25th of the month. In such a situation, if an employee joins from 26 to 30 April, then his April salary is given by adding it to the May salary. In this way, the duration of the wedges becomes more than a month. With the implementation of the new labor code, this employee will not have to wait much for the wages of the days worked this month, irrespective of the date he joins.
