2026 · Q11
Consider the following statements about India's labour reforms introduced in 2025 :
- 1The 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.
- 2With 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?
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- A1 only
- B2 only
- CBoth 1 and 2
- DNeither 1 nor 2
Explanation
Under the Industrial Relations Code, 2020, an industrial establishment retrenching workers must contribute 15 days' wages per retrenched worker to a Re-skilling Fund, credited to the worker's account within 45 days — statement 1 is correct. However, recognition as the sole negotiating union requires 51% membership of the workers, not 41% — statement 2 is false. Hence only statement 1 is correct.