Companies will soon be required to pay for re-skilling retrenched workers

Companies will soon be required to pay for re-skilling workers — a sum which will go directly into their bank accounts within 45 days of their retrenchment.

The Industrial Relations Code Bill, 2019, introduced by Labour and Employment Minister Santosh Kumar Gangwar in the Lok Sabha on Thursday, has proposed that the government set up a re-skilling fund for workers affected by retrenchment or closure of units.

The fund will be formed through contribution from employers equivalent to ‘15 days of wages last drawn’ by workers being retrenched. “The fund shall be utilised by crediting 15 days’ wages last drawn