Hello Everyone,
Can anyone please help me with all the information on the ESIC Act, the benefits, etc.?
Thank you
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Hello Community Member,
Greetings!
I need information on FNF settlement policy or amendment act for Maharashtra, Currently I am following 45 days structure to do FNF whether employee serve notice period or don’t serve notice period .
I recently got information that FNF nowadays getting settle on Same day of leaving the organisation or with 2 working days from leaving the organisation.
Is there any document I can refer to do so and follow the right procedure.
Thanks & Regards,
Sonal Pandey
Hr Manager
8433924496
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Dear Sonal,
The FnF process has to be followed as per your company policy.
The policy would have been defined by your company at the time of inception, if not you can create one.
If your policy says 45 days then continue with it.
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I do not agree to the 45 days timeline, if you see the gratuity act, it says you have to pay the gratuity within 30 days. the 2nd settlement is mentioned in new labour codes, if you retrench then you need to pay him the compensation 2nd day, including his leave encashment, pending salary, bonus and gratuity but here also one catch. As per bonus act, there is the timeline of bonus payment, hence f&f should be paid within 30 days in case of regular employees, if someone is retrenched it should be paid next day.
Please share if you feel anything is not appropriate.
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Dear Kamlesh,
Well at time of inception of the organisation it was 45 days but what is the current rule for the same.
Please update me on the same.
Thanks & Regards,
Sonal Pandey
Hr Manager
8433924496
1 Like
FYI:-
Full and Final Settlement Under the Payments of Wages Act
The current new age code says that a company has to pay the full and final settlement payments to employees within two days after their last working day.
What are the Rules for FnF Settlement?
The new labor law for FnF payments states that the company must pay the complete salary settlement within two days after the employee has completed their last working day, backing their dismissal, resignation, or terminationhttps://www.startuphrtoolkit.com/employee-termination-policy/. However, there isn’t a formulated date for the full and final payment settlement directed in the act. Usually, 30-45 days is ideal to pay the total and absolute compensation.
The HR unit is usually in charge of handling this process. The FnF settlement process usually takes a month to be completed from the date of the employee’s resignation. The full and final settlement is a complex process, which requires extensive knowledge of the subject and experience.
How does FnF Settlement Work?
For paying the employees within a specified time frame, there are several rules that the individual State Governments govern. Make sure you are abiding by the state laws in your state. It depends on the company’s decision if they want to provide the settlement before the termination or after. Create a program for salaried employees. It is a contractual obligation where an employee is supposed to let the organization know and give them a notice before quitting the job. This time gives ample time to the company to find a replacement. Additionally, it allows the employer adequate time to negotiate the settlement terms with the worker. Ensure that you are paying the employee during their entire notice period. Then, as an organization, you can choose whether you want your employee to work during the notice period.
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I think the changing of the settlement days was part of the new wage code which was supposed to be implemented last July 2022 .
“The new wage code says a company must pay the full and final settlement of wages within two days of an employee’s last working day following their resignation, dismissal or removal from employment and services.”
“All the states and UTs need to draft and notify these laws for these new regulations to be enforced, which has not been done yet.”
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