US firm backtracks on layoff promise, credits 3-month severance to 900

Employees alleged the company was acting under proposed new Labour Codes and decided to exit Kerala after concluding that labour law violations would not be tolerated there. State Labour Minister Bindu Krishna clarified that the new Codes have not been implemented in Kerala. The state is still drafting rules under the central legislation. She said the company cannot invoke the proposed codes to bypass existing protections or ignore the understanding reached during Friday's mediation.

Krishna criticized the severance payment as a breach of the company's earlier commitment. The state government will intervene within its powers to protect the affected employees, she said.

A veteran trade union leader told local media the mass layoff exposed what he called unhealthy provisions in the new Labour Code. He alleged the code gives employers greater leverage to resort to contract employment and large-scale retrenchment. The trend signals a dangerous situation for India's workforce, he warned, particularly without strong trade union intervention.