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Labour Code Chapter XI Requires Employer Contribution of 15 Days' Wages to Worker Re-skilling Fund on Retrenchment

Target:MPSCUPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
13 Jul 2026
~2 min
Source: The Hindu
Key Data:800 employees retrenched15 days' wages contributionChapter XI of Code on Social Security
Bodies:CorroHealth InfotechKerala Labour DepartmentMinistry of Labour and Employment
Practice MCQs from today's news ▸
What This Article Covers

1.CorroHealth Infotech retrenched 800 employees in Kochi and Kozhikode without prior notice, citing operational losses.

2.Kerala government and opposition declared the retrenchment illegal; Labour Minister to raise issue with Union Minister.

3.Chapter XI of the Labour Code requires employer to contribute 15 days' last drawn wages to a worker re-skilling fund.

The Big Picture
Prelims · HighMains · Medium

The retrenchment of 800 employees by CorroHealth in Kerala without prior notice has spotlighted the new labour codes. Chapter XI of the Code on Social Security mandates employers to contribute 15 days' wages to a worker re-skilling fund before retrenchment. This incident tests state vs central enforcement of labour reforms and is crucial for understanding worker protection laws.

Exam Lens

Quick Exam Facts From News

Retrenched Employees800 (CorroHealth)
Employer Contribution15 days' wages to re-skilling fund
Legal ProvisionChapter XI of Code on Social Security

1-Minute Revision

  • ›Retrenched Employees: 800 (CorroHealth)
  • ›Employer Contribution: 15 days' wages to re-skilling fund
  • ›Target this Data: 15 days' wages contribution to worker re-skilling fund on retrenchment
  • ›Target this Nodal Body: Ministry of Labour and Employment (central) / Kerala Labour Department
  • ›Target this Legal Point: Chapter XI of the Code on Social Security

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which ministry is primarily responsible for the implementation of the Code on Social Security at the central level?

Q2Statement-basedHard

Consider the following statements regarding the retrenchment rules under the new labour codes:

1. Chapter XI of the Code on Social Security requires the appropriate government to set up a worker re-skilling fund.

2. The employer must contribute an amount equal to 30 days' wages last drawn by the worker to the re-skilling fund.

3. The Kerala government deemed the retrenchment of 800 employees by CorroHealth as illegal.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the news article, how many employees were retrenched by CorroHealth Infotech from its Kochi and Kozhikode centres?

Q4Application/ImpactMedium

What is the primary objective of the worker re-skilling fund mentioned in Chapter XI of the Code on Social Security?

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