India's new labour codes, effective November 21, 2025, pivot from job protection to worker empowerment via the Worker Re-skilling Fund. Employers deposit 15 days' wages per retrenched worker for skill upgrades amid AI disruptions, covering gig workers too, though implementation gaps persist
India's labour reforms signal a bold departure: protecting adaptable workers over static jobs in an AI-driven era. The Industrial Relations Code mandates a Re-skilling Fund, transforming retrenchment payouts into lifelong learning tools.
Core Provisions
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Employers contribute 15 days' wages directly to workers' accounts within 45 days of layoff, alongside compensation, enabling flexible, modular training aligned with Skill India.
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Threshold for government approval on retrenchments rises to 300 workers from 100, easing flexibility while funding transitions for millions.
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Gig workers, projected at 2.3 crore by 2030, gain formal inclusion with portable benefits and responsive skilling.
Experts hail it as elevating reskilling from optional to mandatory, but warn of uneven state rollout, quality risks, and low awareness among informal sectors. Collaboration among government, employers, and trainers is key to success.
Sources: India Today, Littler