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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Industrial Relations Code, 2020

Sunrise Textiles Pvt Ltd, an industrial establishment, retrenches a worker whose last drawn wages were Rs 800 per day. Assuming the Central Government has not notified any other number of days, how much must the employer contribute to the worker re-skilling fund for this worker?

The employer must contribute Rs 12,000. The Code requires an amount equal to fifteen days wages last drawn by the retrenched worker, unless the Central Government notifies a different number of days. Fifteen days at Rs 800 per day gives Rs 12,000.

  1. ARs 8,000 (ten days wages)
  2. BRs 12,000 (fifteen days wages)Correct
  3. CRs 24,000 (thirty days wages)
  4. DRs 36,000 (forty-five days wages)

Explanation

The employer contributes an amount equal to fifteen days wages last drawn by the worker immediately before retrenchment, unless another number of days is notified. Here 15 x 800 = Rs 12,000. Thirty or forty-five days confuse the contribution with the credit timeline or notice periods.

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