Salary by the 7th! Full payment within two days of quitting a job—5 key highlights of the new labour code..

If you are a salaried employee, this news is crucial for you. Under the Central Government's new labor codes, rules regarding salary disbursement have been made clearer than before. According to the Code on Wages, if an employee receives a monthly salary, it must be credited to their account by the 7th of the following month. Furthermore, if an employee quits, is fired, or has their employment terminated for any reason, the company must settle all their outstanding dues within two working days.

Who will benefit from this rule?
Previously, many rules regarding salary payment applied only to employees earning up to a certain salary limit; however, under the new Code on Wages, these rules will apply to all employees, regardless of whether their salary is low or high. This means that every employee will now have a legal right to receive their salary on time.

By when must the salary be paid?
According to the new rules, the timelines for salary payment are as follows: Employees receiving a monthly salary must be paid before the 7th of the following month. Those receiving weekly wages must be paid by the last working day of the week. Those paid on a 15-day cycle must be paid within two days of the completion of the 15-day period. Daily wage earners must be paid for the day's work immediately after the work concludes.

When will full payment be received upon leaving a job?
If an employee resigns, is fired, or has their employment terminated, the company must pay all outstanding salary, leave encashment, and other dues within two working days. The objective of this rule is to prevent employees from having to wait a long time for their money.

What happens if a company delays salary payment?
If a company fails to pay the salary on time or deducts money from the employee's salary without authorization, the employee can file a complaint. For this purpose, the government will appoint 'Inspector-cum-Facilitators' to ensure that companies comply with the regulations. Employees can file their complaints within a period of three years. If, following an inquiry, the concerned authority orders the company to pay wages or compensation and the company fails to do so, the government can recover the amount in the same manner as land revenue.

What has changed compared to the old rules?
The new Code on Wages is a unified law that replaces several existing statutes related to wages, including the Payment of Wages Act, 1936. The most significant change is that regulations regarding timely wage payments and the prohibition of improper deductions will now apply to all employees, regardless of their salary level. Additionally, it will be mandatory for companies to provide wage slips to employees; these may be issued in either physical or digital format. Clear rules have also been established regarding the extent to which a company can make deductions from wages.

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