CHAPTER XI: WORKER RE-SKILLING FUND
Section 83: Worker re-skilling fund
This section creates a national fund to help retrenched workers gain new skills and find new jobs.
Sub-Section (1): Creation of the Fund
- Legal Text: “The appropriate Government shall, by notification, set up a fund to be called the worker re-skilling fund…”
- Simple English: The Central or State Government must officially create a designated fund specifically to help workers who lose their jobs to retrenchment.
- Example: The Central Government publishes an official notice establishing the “National Worker Re-Skilling Fund, 2025.”
Sub-Section (2): Fund Composition
The fund is primarily financed by employer contributions.
- Clause (a) (Employer Contribution): “…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;”
- Simple English: When an employer retrenches a worker, they must contribute an amount equal to 15 days of that worker’s final salary to the Reskilling Fund.
- Example: An employer retrenches 50 workers, each earning Rs. 1,000/day. The employer must contribute $50 \times 15 \times 1,000 = \text{Rs. } 7,50,000$ to the Reskilling Fund. (Note: This is separate from the compensation paid to the worker).
- Clause (b) (Other Sources): “…the contribution from such other sources as may be prescribed by the appropriate Government.”
- Simple English: The government can decide to add money to the fund from other sources, such as grants or government budgets.
Sub-Section (3): Fund Utilisation (Direct Credit to Worker)
- Legal Text: “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…”
- Simple English: The money contributed to the fund is meant to be quickly accessed by the retrenched worker. The fund must transfer an amount equal to 15 days of the worker’s last drawn wages directly into the worker’s bank account within 45 days of their retrenchment.
- Example: Mr. Suresh is retrenched. Within 45 days, the Reskilling Fund deposits Rs. 15,000 (his 15 days’ wages) into his account. This money is intended to support him while he seeks training or a new job.
