Retrenchments in Kerala: Labour codes and its rules | Explained

Kerala is grappling with retrenchments under new labour codes, which mandate employers to contribute to a worker re-skilling fund when employees are laid off. This fund, set up by the appropriate government, requires the employer to pay an amount equivalent to 15 days' wages of the worker's last drawn wages. This measure aims to ensure that retrenched workers receive support for retraining and skill development, addressing the immediate financial impact and future employability. Such initiatives are crucial as they reflect a shift toward more comprehensive labour protection and worker welfare in India's evolving industrial landscape.