A big change will come into effect from April 1, 2026, for working people. Under the new labor rules, companies must complete an employee’s full and final (F&F) settlement within just two working days after their last working day.
Earlier, this process could take more than 45 days. Now, completing it within two days will be mandatory.
What Has Changed in the New Rule?
Till now, companies did not have a fixed deadline for F&F settlements. Because of this, many employees had to wait a long time to get their money.
Under the new rule, companies must clear all dues within two days in case of resignation, termination, or layoff. This includes:
Salary
Leave encashment
Bonuses
Any other pending payments
Why This Rule Is Important for Employees
This rule is very helpful for people who are changing jobs. Earlier, delays in F&F payments created problems in their financial planning.
Sometimes, even after joining a new job, employees did not receive money from their previous company. This caused stress and financial issues.
Now, with payments being completed within two days, employees will get their money on time and can move ahead without worry.
Main Benefits of the New Rule
The biggest advantage of this rule is better transparency and trust.
Companies will not be able to delay payments
Employees will not need to follow up again and again
The process will become faster and smoother
This is seen as a major step to solve a long-standing problem.
Challenges for Companies
While the rule is good for employees, it may be difficult for companies to follow it.
F&F settlement includes many steps such as:
Checking attendance
Calculating leave balance
Deducting taxes
Getting approvals from different departments
Completing all these tasks within two days can be challenging for many companies.
What About Bonuses and Incentives?
In some cases, payments like performance bonuses or incentives are not immediate.
In such situations:
Fixed payments will likely be cleared within two days
Variable payments may be paid later, depending on company policy
This new rule will have a strong impact on sectors like IT, startups, retail, and the gig economy, where employees frequently change jobs.
