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CS Professional · Labour Laws and Practice · Law of Industrial Relations

Sundaram Textiles Ltd, an industrial establishment to which the lay-off prohibition applies, retrenches Mr. Karthik, a worker whose last drawn wages were Rs 800 per day. Under the Industrial Relations Code, 2020, and assuming no other number of days has been notified, what amount must the employer contribute to the worker re-skilling fund for him?

The employer must contribute Rs 12,000. The Code requires a contribution equal to fifteen days wages last drawn immediately before retrenchment, unless the Central Government notifies a different number of days. Fifteen days at Rs 800 per day gives Rs 12,000 for this retrenched worker.

  1. ARs 8,000, being ten days wages
  2. BRs 12,000, being fifteen days wagesCorrect
  3. CRs 24,000, being thirty days wages
  4. DRs 6,000, being the wages of seven and a half days

Explanation

The employer contributes an amount equal to fifteen days wages last drawn by the worker immediately before retrenchment, for every retrenched worker. 15 x 800 = Rs 12,000. Ten or thirty days are not the statutory default, and the figure applies only unless the Central Government notifies another number of days.

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