Retrenched staff to get reskilling fund within 45 days of losing job

NEW DELHI: An employee who loses a job is set to receive funds for reskilling within 45 days of retrenchment, the draft rules published under Industrial Relations Code, 2020 said. The amount - equivalent to 15 days of the worker's last drawn wages - has been introduced under the new Industrial Relations Code as a move to ensure timely financial support for workers affected by job cuts and acknowledges the need for structured support in transitioning to new job roles.

"The (fund) shall be transferred by (govt) electronically to each of the worker accounts within 45 days of retrenchment to enable him utilise that amount for reskilling," said the draft rules, released for public comment. It said an employer who retrenches a worker must electronically transfer the amount to the proposed reskilling fund within 10 days.

A govt official told TOI the fund for the first time 'institutionalises skilling' and recognises that when a job role becomes redundant, the system must support transition of workers and not only compensate for their exit.

"The fund will be available for all levels and categories of workers as reskilling is a everyone's need."

Besides, the rules also proposed the manner in which a retrenched employee will be given an opportunity for re-employment in case a similar vacancy arises in the establishment. An employer will need to prepare a list of employees being considered for retrenchment seven days prior and make it public.

"When any vacancy occurs and there are workers retrenched within one year prior to the proposal for filling such vacancies, the employer shall, if such workers are citizens of India and have given willingness for employment, give them preference over others on the basis of service seniority," the rules read.