Under the new labour law code, employees will now get their full and final (FnF) settlement within two days of leaving or resigning the firm. In the past, some companies would pay FnF after 40 days, while some paid within the statutory timeframe of about 30 days.
When an employee resigns, there are many settlements like last working month's salary, gratuity and leave encashment, and returning the company's property, like, laptop and other formalities. Therefore, companies would often settle everything at once to ensure that they were following the law.
As per the industry experts, under the new labour law, all employees must receive their final wages, the complete full and final settlement (FnF) of salary within two working days after the last working day. This provision covers, Covers all forms of separation from employment, including voluntary resignation. Applies uniformly to all employees, irrespective of salary level or employment category.