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Ahead of Kerala Labour Department talks, CorroHealth bars laid-off employees from entering office premises

The dispute follows the company's decision to lay off more than 800 employees without prior notice, including around 600 at its Palarivattom office in Kochi and about 200 at its Kozhikode office.

Published Jul 06, 2026 | 11:53 AMUpdated Jul 06, 2026 | 11:53 AM

CorroHealth.
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Synopsis: CorroHealth in Kochi allegedly prevented employees from entering the premises despite an earlier understanding that the mass layoff process would remain on hold until 10 July. Employees who reported for duty were stopped at the gate, prompting protests outside the office. Leaders of the AITUC reached the venue in support of the affected workers.

Tensions escalated outside the office of CorroHealth in Kochi in Kerala on Monday, 6 July, after the company allegedly prevented employees from entering the premises despite an earlier understanding that the mass layoff process would remain on hold until 10 July pending discussions with the state government.

Employees who reported for duty were stopped at the gate, prompting protests outside the office. Leaders of the AITUC reached the venue in support of the affected workers.

The dispute follows the company’s decision on Friday to lay off more than 800 employees without prior notice, including around 600 at its Palarivattom office in Kochi and about 200 at its Kozhikode office.

Also Read: TCS’ mass layoff pushes employees to unions

Sudden layoff

According to employees, they were informed through an unexpected office announcement that “today is your last day,” and were subsequently issued termination letters on plain white paper without the company’s logo.

The Labour Commissioner is scheduled to meet the employees to assess the situation and hear their concerns. The Labour Secretary is also expected to visit Kochi.

Meanwhile, the company has informed the government that the meeting scheduled for Monday has been postponed to Wednesday. A crucial round of talks is expected to be held under the leadership of Labour Minister Bindu Krishna.

The affected employees have alleged that while the company is carrying out mass layoffs in Kerala, it is simultaneously recruiting staff in Noida and Hyderabad.

CorroHealth, a Texas-based medical coding company, has maintained that the layoffs are in accordance with the new labour codes. However, official sources contend that the new labour codes have not yet been fully implemented in Kerala.

They argue that, under the Industrial Disputes Act, 1947, establishments employing more than 300 workers require prior government permission before carrying out such large-scale retrenchments, raising questions on the legality of the company’s action.

(With inputs from Dileep V Kumar.)

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