India's new labour codes, effective from November 21, 2025, require companies to complete full and final (FnF) settlements within two working days of an employee's last working day. This reform aims to alleviate financial stress for employees resigning or being terminated, ensuring timely access to their dues.

• 01Full and final settlements must be completed within two working days starting April 1, 2026.
• 02The new labour codes consolidate 29 existing laws into a single framework governing employee rights.
• 03Key components of FnF include final salary, leave encashment, bonuses, gratuity, and reimbursements.
• 04Gratuity eligibility is now available after one year of service in certain cases.
• 05Employers can deduct amounts for taxes and other liabilities as per company policy.

These changes will significantly reduce the waiting time for employees to receive their dues, alleviating financial pressure during job transitions.