Shivam G. 13 January 2026

Full and final settlement after resignation under new labour codes

Respected Professionals / Learned Members,

If employee based in mumbai, Maharashtra resigned w.e.f. 20 December 2025. As of 13 January 2026, the employer has not processed the full and final settlement.

Please clarify whether the employer is still obligated to process the full and final settlement within two working days of the last working day or is any longer period (such as 30/45 days) permissible, and whether the labour code provisions are currently applicable in Maharashtra (Mumbai).

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7 Replies

T. Kalaiselvan, Advocate (Advocate) 13 January 2026

You have furnished piecemeal information here due to which no concrete opinion can be rendered, instead you can consult a local advocate practising service law and proceed as advised

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kavksatyanarayana (subregistrar/supdt.(retired)) 14 January 2026

Yes. What is your context?

Shivam G. 14 January 2026

Sir, It is understood that many corporates are still awaiting detailed rules and further notifications, and that existing practices continue to be followed in the interim.

In the present case, the employee resigned on 20 December 2025; 21 December 2025 being a Sunday (holiday), and 22 and 23 December 2025 being working days. In this context, is the employer legally obliged to complete the full and final settlement on or before 23 December 2025, i.e., within two working days, and failure to make payment within such period would constitute default? or existing practices continue to applyy?

Kindly guide.

Dr. J C Vashista (Advocate ) 15 January 2026

Your presumption qua payment of salary / funds after acceptance of resignation (whether it was a Sunday, Holiday on any account etc. is misconceived for that employer shall not favour the employee, accordingly payment till 20th December is correct.

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P. Venu (Advocate) 16 January 2026

What is the relevance of "two working days"? What is the law under which the company a registered? Is the employee a "work man"?

Shivam G. 16 January 2026

Sir,

I may not have been able to clearly articulate my query earlier

the person is employee working in Head office in mumbai.

On 21 November 2025, the Government of India brought the four Labour Codes into effect,In New labour code Section 17(2) of the Code on Wages, 2019 as per new Employer must settle wages within two working days from resignation/ last working day.

In this context, clarification is sought on whether the said provision is presently applicable and binding on employers, requiring strict compliance, or whether the organisation may continue to follow the earlier applicable labour law framework, under which Full and Final settlement is typically processed within a period of 30–45 days.