What is the rule for settling full and final payments?
I am from Gujarat, and my salary is Rs. 100,000. I left a company over 30 days ago, and they have not settled my full and final payment. Their argument is that according to the Payment of Wages Act, if the salary exceeds Rs. 24,000, there is no timeframe mentioned for settlement. However, under the Code of Wages, which was implemented in 2021 in Gujarat, there is no salary limit, and even a person earning Rs. 100,000 must have their full and final payment settled within two days. Kindly guide me if I am correct.
Under the Code of Wages, 2019, which applies in Gujarat from 2021, there is no salary limit for full and final settlement. As per Section 17(2) of the Code, an employee who resigns must receive their dues within two working days from their last working day. Your employer's reliance on the Payment of Wages Act is incorrect, as it applies only to employees earning up to Rs. 24,000 per month. You can send a legal notice or approach the Labour Commissioner for redressal.
You are correct that under the Code of Wages all employees regardless of their salary should have their full and final payment settled within two days of leaving the company. The employer's argument based on the Payment of Wages Act regarding the salary limit is not valid in this context. You should formally request your pending payment in writing, citing the Code of Wages. If they still refuse to settle, consider filing a complaint with the Labor Commissioner in Gujarat for further action.
You are correct. Under the Code of Wages, 2021, there is no salary limit for full and final payment settlement, and it must be done within two days of leaving the company. The Payment of Wages Act's provision for salaries above Rs. 24,000 does not apply here. If the company fails to settle within two days, you can file a complaint with the Labour Commissioner or approach a Labour Court for further action. For further legal assistance contact us on our helpline number.
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