WORKER RE - SKILLING FUNDCentral

Section 83 of The Industrial Relations Code, 2020

(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---
1. (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;
2. (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.

Summary

The government will create a special Worker Re-skilling Fund to help workers who have lost their jobs.
Every time an employer retrenches (lays off) a worker, they must contribute a specific amount to this fund.
The fund is meant specifically for retrenchment cases, not for other types of leaving like retirement.

Practical examples

1Rajesh was a welder earning 20,000 rupees a month. When his factory reduced its workforce, the company had to calculate his 15-day wage (10,000 rupees) and pay that into his re-skilling fund account within 45 days so he could afford new job training.

2A textile mill in Ludhiana let go of 100 workers on May 1. By June 14, the mill owners had to ensure that 15 days' worth of wages for every one of those 100 workers was deposited into the government-managed fund for their future training.

FAQ

1. Can the employer take this money out of my final paycheck?

No, the Code says this is a contribution of the employer, meaning it is an extra cost they must pay, not a deduction from what they owe you.

2. Is this the same as my severance pay (retrenchment compensation)?

No, this is additional. This fund is specifically for "re-skilling" or training, whereas compensation is a direct payment for losing your job.

Test yourself

Q1.Under Section 83 of The Industrial Relations Code, 2020, what is the mandatory employer contribution for a retrenched worker?

Q2.Under Section 83 of The Industrial Relations Code, 2020, what is the deadline for the fund to be utilized for the retrenched worker?

Q3.Under Section 83 of The Industrial Relations Code, 2020, for which event must the employer pay into the re-skilling fund?

Q4.Under Section 83 of The Industrial Relations Code, 2020, who is responsible for setting up the worker re-skilling fund?

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