How Many Days Full & Final Settlement Is Compulsory As Per Rules.

Dear Senior,

Please send the rules of full and final settlement in PDF. How many days (time limit from the last working day) is full and final settlement compulsory as per rules?

Thanks

Hi Buddy,

There is no legislation specifying the time limit for F&F; however, it has to be settled in a reasonable time, say within 30 days from the date of relieving.

With Regards,

Mr. Thumbs Up

Salaries need to be paid within 2 working days from the last working day. This is specified in the Factories Act and Shop and Establishment Acts.

Further, for all other items due, payment must be made within 30 days unless specified otherwise. This is outlined in the Payment of Wages Act.

Gratuity is also payable within 30 days (from the date of application by the employee).

Additionally, the standing orders applicable to you will provide additional details or procedures, including time limits.

Hi,

There is no law regulating the payment period for F&F, and it varies from organization to organization. Some companies will pay within 30 days, while others pay within 45 days.

Saswata Banerjee,

For information regarding all sections/rules under the Factories Act/Shop & Establishment Act, please specify them as other professionals would benefit from knowing it.

Regards

Hi all,

If an employee resigns, the employer can pay the salary/wages on the next payday. However, if the employer terminates the services of the employee, the employee must be paid his dues (unpaid earned wages, cash in lieu of un-availed earned leave, retrenchment compensation equal to 15 days' wages for each completed year of service, unpaid bonus, if any) before the expiry of the second working day.

Thanks and Regards,
RL Dhingra, Advocate
Labour Law Consultant
Delhi & NCR
Mob. 09818309937
Email: rld_498@rediffmail.com

If the employee who has resigned and has obtained their clearance certificate and no-due certificate from all departments, their full and final settlement of accounts should be paid normally within seven working days from the date of relieving, except for bonus and gratuity. This timeline is not specified in any acts or rules but is a common practice. Gratuity should be paid within 30 days, and the bonus within 8 months from the close of the financial year.

Adoni Suguresh
Labour Laws Consultant

It's been 60 days, and my company has not cleared a rupee for full and final settlement. Their replies are in the negative. What should be done here?

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You should calculate the dues such as the last salary, leave salary (Privilege/Earned/Annual), bonus for the previous year if not paid, any other dues, etc., and send the claim to the employer. Endorse a copy to the Labour Officer of the local area and wait for a week. If nothing happens, you can submit an application to the Labour Officer stating non-payment of terminal dues and seek action. Follow up on that. You need to follow up on this. Failing all this, you need to approach the Labour Court.