• F&F settlement timelines

By what time is F&F settlement and experience letter expected from a company? They said 30 days from LWD to me over phone. On the 30th day, they said wait for 1 more week. Now that 1 week is also over. I read that as per new laws F&F settlement is to be given by 2 days. Is this true? Now 35 days have passed in my case.
Asked 10 hours ago in Labour

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6 Answers

Under Section 17(2) of the Code on Wages, 2019, employers are statutorily mandated to pay all unpaid wages, leave encashments, and pending bonuses within 2 working days of an employee's Last Working Day (LWD).

 

This applies universally across all separation types including resignation, termination, and retrenchment. While companies traditionally dragged this out over a 30-to-45-day window citing "internal policies", the statutory law strictly supersedes internal corporate timelines

 

3) 

Send a email to your HR Manager, Operations Head, and Finance Head.

 

in said notice request  tjek to  release your itemized F&F settlement sheet, credit the net amount to my bank account, and issue your Relieving Letterand Experience Certificate within 48 hours of this email. Failing this, you will be forced to escalate this matter to the Labour Commissioner's office to claim your dues along with statutory interest for the period of delay.

 

Ajay Sethi
Advocate, Mumbai
100520 Answers
8219 Consultations

Based on your timeline of 35 days, your employer is almost certainly in breach of the law. You are correct that a new, much stricter regulation exists: Section 17(2) of the Code on Wages, 2019 (India's new Labour Code), which came into force on November 21, 2025, mandates that an employee's full and final (F&F) settlement must be completed within two working days of the last working day. This provision applies to all separations, including resignation, and overrides the old 30-day industry standard. The common industry practice of a 30-45 day settlement cycle for full dues is no longer legally permissible. Regarding the experience letter, while there is no specific statutory deadline like the two-day rule, it is well-established that an employer cannot deny or unreasonably delay issuing it, as it's a crucial document for future employment. It is typically issued alongside the relieving letter, and courts have held that withholding it amounts to an unfair labour practice. Given that you have already exceeded even the old, outdated 30-day timeline, you should immediately send a formal written complaint to your company's HR and senior management. If they do not resolve the matter within a week, you should escalate by filing a complaint with the Labour Commissioner under the Industrial Disputes Act, 1947, or consider sending a legal notice. You are also legally entitled to claim interest on the delayed payment.

 

 

Lalit Saxena
Advocate, Sonbhadra
280 Answers

- There is no rule , that a company must complete F&F within 2 days today. 

- However, as 35 days already passed, then the said Company is bound to pay the same without any delay, and cannot extend it more days to give pressure to the employee. 

- You can lodge a complaint before the Labour Department/Labour Commissioner if you come under this category. 

- Send a legal notice if doing delay and seek compensation for mental harassment. 

Mohammed Shahzad
Advocate, Delhi
15983 Answers
244 Consultations

Dear Client,

Yes, the “2-day F&F rule” is being discussed under the new labour-code framework, and several current 2026 sources say final wages/settlement should be completed within two working days of the employee’s exit, instead of the older 30–45 day practice. But in real-life HR practice, many companies still delay settlements, and some guidance notes also say that paperwork, recoveries, and internal approvals can stretch the process beyond that ideal timeline.

So, if 35 days have already passed in your case, that is longer than both the old common practice and the newer two-day expectation. You should send a written reminder to HR asking for the exact reason for delay, the date of release of full and final dues, and the experience letter; if they still do not respond, escalate to the labour authority in your jurisdiction and keep all emails, messages, and phone-call notes as proof.

I hope this helps and if you have any further issues do not hesitate to contact us.

Anik Miu
Advocate, Bangalore
11303 Answers
126 Consultations

It’s 30 to 45 days if not done you can send them a legal notice 

Prashant Nayak
Advocate, Mumbai
35055 Answers
256 Consultations

Though there is no specific time limit for the F & F settlement to take place, it cannot be unduly and unreasonably delayed. In your case, it is better to follow up with your HR regularly and settle the matter amicably. If nothing works out, you may think of legal options later.

Swaminathan Neelakantan
Advocate, Coimbatore
3138 Answers
20 Consultations

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