My company is delaying my full and final settlement after I resigned.
Simple answer
Under the Code on Wages, your pending salary must be paid within two working days after you leave, whether you resigned, were removed or retrenched. If you are eligible for gratuity, it is due within 30 days. A company policy of 45 or 60 days does not override these limits.
Real-life examples
Ayesha resigned from a Bengaluru firm; her last working day was 30 June. HR said F&F takes 60 days. She wrote back citing Section 17(2) of the Code on Wages, which requires her unpaid salary within two working days.
Tenzin left a Delhi company without serving his full notice period. His contract lets the company recover notice pay, so his final amount may be lower. Before signing anything, he asked for a written break-up of every deduction.
What should you do?
- 1Email HR on your last day asking for your full and final settlement with a written break-up.
- 2Ask for unpaid salary within two working days, quoting Section 17(2) of the Code on Wages.
- 3If you have 5+ years of service, or completed one year on a fixed-term contract, apply for gratuity in writing.
- 4Transfer or withdraw your PF online using your UAN. Complain on EPFiGMS if it is held up.
- 5If dues stay unpaid, file a claim with the labour authority or on SAMADHAN within 3 years.
Exceptions & limits
- The Codes set no deadline for relieving or experience letters. These depend on your contract, company policy and, in some states, the Shops and Establishments law.
- If your contract allows recovery of notice pay, loans or company property, the final amount can be reduced. Ask for each deduction in writing.
Official legal reference
Code on Wages, 2019 — Section 17(2)
Wages of an employee who resigns, or is removed, dismissed or retrenched, must be paid within two working days.
Earlier: Payment of Wages Act, 1936, Section 5(2)Read the official textCode on Social Security, 2020 — Section 56
The employer must work out gratuity and pay it within 30 days of it becoming payable; late payment carries simple interest.
Earlier: Payment of Gratuity Act, 1972, Section 7Read the official textOccupational Safety, Health and Working Conditions Code, 2020 — Section 32
A worker who quits or is dismissed gets wages for unused annual leave by the second working day.
Earlier: Factories Act, 1948, Section 79Read the official textCode on Wages, 2019 — Section 45
Unpaid dues can be claimed before the claims authority within 3 years.
Earlier: Payment of Wages Act, 1936, Section 15Read the official text
Where to get help
SAMADHAN (labour disputes)
File labour disputes like unpaid wages with the labour authorities.
NALSA Free Legal Aid
Free lawyer and legal advice for eligible people through Legal Services Authorities.
Source & status
- Applies to
- Varies by state
- Governments can set a different time limit in some cases, and state rules under the Codes are still being notified. Service letters and leave rules for shops and offices may also depend on your state's Shops and Establishments Act.
- Law in force since
- 21 Nov 2025
- Legal review
- Draft — awaiting lawyer review
Educational information, not legal advice for your case. Exact facts and the law that applies matter — speak to a lawyer before acting.