AS per the previous ID Act 1947, the retrenchment compensation was payable to the retrenched/terminated worker, on his fulfillment of certain conditions, @ 15 days salary for every completed year of service. As per the IR code 2020, is it still applicable or is there any change on the above? Can any reader clarify me, please?
From India, Bangalore
1From India, Bangalore
Dear Gopal,
The rate of retrenchment compensation under the IRCode,2020 remains the same as that of the existing provisions of the IDA,1947 but an enabling provision has been incorporated in the same section to revise it to the Government.
In addition, the employer is required to contribute to the Reskilling Fund constituted under the Code @ 15 days wages last drawn per every employee retrenched.
From India, Salem
The rate of retrenchment compensation under the IRCode,2020 remains the same as that of the existing provisions of the IDA,1947 but an enabling provision has been incorporated in the same section to revise it to the Government.
In addition, the employer is required to contribute to the Reskilling Fund constituted under the Code @ 15 days wages last drawn per every employee retrenched.
From India, Salem
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Draft Notification for Industrial Relation code Rules 23.10.2020.pdf