Notification: S.O. 210
Date: 3 September 2026
Issuing Authority: Government of Bihar
Legal Provision: Section 83(1), Industrial Relations Code, 2020
The Government of Bihar, through Notification No. S.O. 210 dated 3 September 2026, has constituted the Worker Re-Skilling Fund under Section 83(1) of the Industrial Relations Code, 2020.
The notification has been issued by the Governor of Bihar in exercise of the powers conferred under the Industrial Relations Code, 2020 (Act No. 35 of 2020).
Purpose of the Fund
The Fund is intended to support retrenched workers by providing assistance for:
Re-skilling and skill development;
Improving employability;
Supporting transition to alternative employment; and
Rehabilitation after retrenchment.
Employer’s Financial Responsibility
Under Section 83(2)(a) of the Industrial Relations Code, an employer is required to contribute an amount equivalent to 15 days’ last-drawn wages of the retrenched worker to the Worker Re-Skilling Fund.
This contribution is payable in addition to:
Retrenchment compensation;
Notice pay, wherever applicable;
Unpaid wages and other statutory dues; and
Any other contractual or statutory benefit payable to the worker.
The contribution applies in cases of retrenchment and is not a substitute for the retrenchment compensation payable directly to the worker.
Compliance Implications for Employers
Employers operating industrial establishments in Bihar should:
Identify cases falling within the definition of retrenchment;
Calculate the worker’s last-drawn wages accurately;
Maintain retrenchment and wage calculation records;
Deposit the prescribed contribution within the applicable timeline;
Preserve proof of payment and related correspondence; and
Ensure that retrenchment procedures under the Industrial Relations Code are followed independently.
The exact procedure for payment, administration and utilisation of the Fund will depend upon the rules, directions or operational guidelines issued by the appropriate Government.
Key Takeaway
The constitution of the Worker Re-Skilling Fund strengthens the statutory protection available to retrenched workers in Bihar. Employers must treat the Fund contribution as a separate compliance obligation arising at the time of retrenchment.