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Q11 (CAPF/2026) Economy › Industry, Infrastructure & Investment

Consider the following statements about India's labour reforms introduced in 2025 :
1. The Industrial Relations Code, 2020 introduces Re-skilling Fund by an industrial establishment which is equal to 15 days wages for every worker retrenched in addition to the retrenchment compensation, and has to be credited in the worker's account within 45 days of retrenchment.
2. With respect to Trade Union Recognition, any union with 41% membership shall get recognition as the Negotiating Union.
Which of the statements given above is/are correct?

Result
Your answer: —  ·  Correct: A

Explanation

Statement 1 is correct. According to Section 83 of the Industrial Relations Code, 2020, a worker re-skilling fund is established. The employer is required to contribute an amount equivalent to 15 days of the last drawn wages of every retrenched worker. This amount must be credited to the worker's account within 45 days of their retrenchment.

Statement 2 is incorrect. Under Section 14 of the Code, if an industrial establishment has multiple registered trade unions, a union is recognized as the Sole Negotiating Union only if it has the support of 51% or more of the workers on the muster roll. If no single union meets the 51% threshold, a "Negotiating Council" is formed consisting of representatives from unions that have at least 20% membership support.

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