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Chapter XI · Industrial Relations Code

Worker Re-skilling Fund

This chapter has the appropriate Government set up a worker re-skilling fund by notification. For every worker it retrenches, the employer of an industrial establishment pays into the fund an amount equal to 15 days' wages last drawn by that worker (or another number of days the Central Government notifies). The fund then credits 15 days' wages last drawn to the retrenched worker's account within 45 days of the retrenchment, in a manner to be laid down by rules, so every retrenchment carries this cost for the employer and a payment for the worker.

1 section ~1 min read Official text, PDF p. 39
HR managersFactory ownersIndustrial relations managersTrade union representatives

Key points

  1. 1The appropriate Government must set up a worker re-skilling fund by notification. §83
  2. 2For every worker retrenched, the employer of an industrial establishment contributes an amount equal to 15 days' wages last drawn by that worker immediately before the retrenchment. §83
  3. 3The contribution applies to retrenchment only, and the Central Government can notify a number of days other than 15. §83
  4. 4The fund credits 15 days' wages last drawn into the retrenched worker's account within 45 days of the retrenchment, in a manner to be laid down by rules. §83
  5. 5Besides employer contributions, the fund can receive money from other sources that the appropriate Government prescribes by rules. §83

At a glance

15 days' wages last drawn (the Central Government can notify a different number of days)Employer contribution per retrenched workerSection 8315 days' wages last drawnAmount credited to the retrenched worker's accountSection 83Within 45 days of retrenchmentDeadline to credit the retrenched workerSection 83
83

Worker re-skilling fund

In plain words

The appropriate Government sets up a worker re-skilling fund, into which the employer of an industrial establishment pays 15 days' wages last drawn (or another number of days the Central Government notifies) for every worker retrenched, along with money from any other sources the appropriate Government prescribes. From the fund, 15 days' wages last drawn are credited to each retrenched worker's account within 45 days of the retrenchment, in a manner to be laid down by rules.

(1)

The appropriate Government shall, by notification, set up a fund to be called the worker re-skilling fund (hereafter in this section referred to as "fund").

(2)

The fund shall consist of—

(a)

the contribution of the employer of an industrial establishment an amount equal to fifteen days wages last drawn by the worker immediately before the retrenchment, or such other number of days as may be notified by the Central Government, for every retrenched worker in case of retrenchment only;

(b)

the contribution from such other sources as may be prescribed by the appropriate Government.

(3)

The fund shall be utilised by crediting fifteen days wages last drawn by the worker to his account who is retrenched, within forty-five days of such retrenchment, in such manner as may be prescribed.

Source: The Industrial Relations Code, 2020, official gazette copy, page 39

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