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‘Cruel Farce’: Retrenched Workers May Have to Prove Re-skilling, says Report -Ronak Chhabra

-Newsclick.in

The re-skilling fund, introduced through a new labour code bill, may end up discouraging workers from using it, fear experts.

The re-skilling fund, introduced through the Industrial Relations (IR) Code Bill, 2020, with an aim to train the retrenched workers, may come with controversial provisions for the beneficiaries, including requiring them to produce a proof of conformity to the government, a media report on Monday has hinted.

A retrenched worker, who takes cash benefits from the new fund, may have to use it to get himself/herself trained within a deadline, failing which a refund can be claimed along with an interest on the sum transferred to him/her, Business Standard quoted a senior government official as saying.

The Bill has a provision for setting up a “worker re-skilling fund”, which will require the employer of an industrial establishment to contribute an amount equal to 15 days of last drawn wages of a worker to the fund “immediately before” his/her retrenchment. The amount will be credited to the bank account of the worker within 45 days of such retrenchment by the appropriate government – central or state.

The amount will be in addition to the compensation for retrenchment – 15 days average pay for every completed year of continuous service –a worker is entitled to.

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