India's April 1 law mandates dues cleared within 2 days
Starting April 1, 2026, India's new labor law makes it mandatory for companies to clear all dues within just two working days when someone leaves their job: no more waiting around for weeks or months.
If employers delay, they could face legal trouble, and employees can even claim interest on late payments.
Gratuity eligibility possible after 1 year
The law may allow gratuity eligibility after just one year in specific scenarios, instead of five, and it must be paid within 30 days of leaving.
There's also a new rule that basic pay has to be at least one-half your total salary package, which might mean slightly lower take-home pay but bigger provident fund contributions and higher gratuity payouts.
If you're planning a job switch, make sure your paperwork is sorted so your final payout goes smoothly under these new rules.