Final Settlement Timeline: Emerging Push for Time-Bound Salary Disbursement

The emerging regulatory position under India’s evolving labour law framework signals a move toward mandating time-bound disbursement of full and final settlement within two working days of an employee’s exit, thereby addressing longstanding delays in wage realisation and reinforcing the principle that earned wages constitute a statutory right not subject to employer discretion, with the proposed shift aligning with broader labour code objectives of standardised compliance, enhanced worker protection, and reduced post-employment disputes, while placing operational pressure on employers to streamline payroll closure processes, documentation, and clearance mechanisms to ensure immediate settlement upon cessation of employment.