Article · PDF backgrounder

India's Labour Reforms: Simplification, Security, and Sustainable Growth (PIB backgrounder)

Press Information Bureau · static.pib.gov.in Free Intermediate India

The government's explainer on what each Code changes. For an employer letting people go, it states the re-skilling fund (15 days' wages per retrenched worker, on top of retrenchment compensation, credited within 45 days) and the higher threshold of 300 workers for needing approval to lay off, retrench or close.

  • Retrenching a worker now costs 15 days' wages into the re-skilling fund, in addition to retrenchment compensation.
  • Prior government approval for lay-off, retrenchment or closure applies only from 300 workers, up from 100.
  • Allowances above half of pay are added back to wages for gratuity and social security.
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The question it answers

  1. How do I let an employee go legally and fairly in India?

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