Govt. Establishes Worker Re-skilling Fund Under IR Code

Notification no. S.O. 2316(E); Dated: 08.05.2026

The Central Government has constituted the ‘Worker Re-skilling Fund’ in exercise of powers conferred under Section 83 of the Industrial Relations Code, 2020.

1. Purpose of the Fund

The fund has been established to:

• Support re-skilling and rehabilitation of retrenched workers
• Facilitate transition and employability after retrenchment

2. Composition of the Fund

The Worker Re-skilling Fund shall consist of:

2.1 Employer Contribution

• Contribution by the employer of an industrial establishment equal to 15 days’ wages last drawn by the worker immediately before retrenchment or such other number of days as may be notified by the Government

2.2 Other Prescribed Contributions

• Additional contributions from other sources as may be prescribed by the Government

3. Regulatory Objective

The initiative aims to:

• Provide financial support for skill development and workforce transition
• Strengthen social security measures for workers affected by retrenchment

4. Significance under Industrial Relations Framework

The fund forms part of the broader framework under the:

• Industrial Relations Code, 2020
• Focused on balancing industrial flexibility with worker welfare protections

5. Conclusion

The establishment of the Worker Re-skilling Fund reflects the Government’s emphasis on labour welfare and employability support, ensuring that retrenched workers receive assistance for skill enhancement and future employment opportunities.

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