New Delhi: The New Wage Code, which is likely to come into force tomorrow, directs a company to make full and final settlement of pay and wages due within two days from the last working day of an employee. The new rules state that in case of resignation, dismissal or removal from employment and services, the company will have to clear the dues within two days. Most of the companies currently take 45 days to 60 days to process full and final settlement. This is a common practice followed by most of the firms. However, this is all set to change with the new pay code.
What the New Wage Code says:
“Where an employee has – (i) been removed or dismissed from service; or (ii) has been retrenched or resigned from service, or has become unemployed by reason of the closure of the establishment, payable to him The wages shall be paid within two working days. His expulsion, dismissal, retrenchment or, as the case may be, his resignation.” (Also read:
According to media reports, if the Modi government implements four labor codes on wages, social security, industrial relations and occupation security, health and working conditions from tomorrow (July 1), then the important in wage restructuring, PF and gratuity component. There may be changes. working hours, and earned leaves. (Also read: Sensex, Nifty end flat after trading volatility)
If these labor codes are implemented, the new wage code will have an effect on all the factors mentioned earlier. Because these are still early speculations, nothing concrete should be speculated until the government formally announces the rules. (Banks also well positioned to face severe stress situations: RBI Governor Shaktikanta Das)
Currently, 23 states have pre-published the draft rules on these laws, and the Center has completed the process of finalizing the draft rules on these codes in February 2021. On August 8, 2019, the central government notified four labor codes, namely Code of Wages, 2019, Industrial Relations Code, 2020, Social Security Code, 2020, and Occupational Safety, Health and Working Conditions Code, 2020.