Published Jul 10, 2026 | 5:27 PM ⚊ Updated Jul 10, 2026 | 5:27 PM
Labour Minister Bindu Krishna intervened after the firm abruptly terminated nearly 800 employees without notice.
Synopsis: Nearly 800 CorroHealth employees are remaining enveloped in uncertainty after the first round of government-led conciliation talks failed to break the deadlock over the company’s decision to shut its Kerala operations. The state has rejected the firm’s justification and has now set a 20 July deadline for the company to come up with a job-retention plan, warning that violations of labour laws will invite prosecution.
The first round of conciliation talks over the mass layoffs at the US-based healthcare technology company, CorroHealth Infotech Pvt. Ltd., ended inconclusively on Friday, 10 July, leaving the future of nearly 800 employees in Kochi and Kozhikode uncertain.
With the company refusing to reconsider its decision to wind up its Kerala operations, the state government has given it until 20 July to return with a concrete proposal to retain jobs. The firm was also issued a warning that legal proceedings would follow if labour laws were violated.
The high-level meeting, chaired by Kerala Labour Minister Bindhu Krishna at the Ernakulam Collectorate, brought together senior Labour Department officials, company and employees’ representatives, trade unions and elected representatives.
While the company’s legal advisor attended in person, its senior management participated through video conferencing.
As the discussions failed to produce a compromise, both sides agreed to reconvene on 20 July. The government has asked the company to send senior officials to the meeting with fresh proposals.
After the meeting, Minister Bindu said the government had exhausted every possible option to persuade the company to continue its operations in Kerala. She questioned the firm’s explanation that declining business had forced it to shut down only its Kerala centres while continuing operations elsewhere.
The minister said publicly available information indicated that CorroHealth remained a profitable enterprise.
She said company representatives were unable to satisfactorily explain the functioning of its Noida and Hyderabad centres if the downturn in work was as severe as it had claimed. If certain business divisions remained profitable, she said, those operations should be shifted to Kerala rather than abandoning the state altogether.
She said the government viewed the company’s action not merely as retrenchment but as a closure of operations.
Such a move, she argued, carried different legal consequences and could not be undertaken without following statutory procedures, including prior intimation to the state government.
She also clarified that Kerala has not yet implemented the new Labour Codes, as the state was still framing the rules required under the central legislation. Therefore, the company could not rely on provisions of the proposed codes to bypass protections available under the existing labour laws.
The minister reiterated that the government’s immediate concern was preserving employment rather than negotiating compensation packages.
She said discussions on severance benefits were not taken up because the priority remained ensuring that the company continued its presence in Kerala and retained its workforce.
Krishna also disclosed that the company had suggested that employees remain at home until the next round of talks. The proposal was firmly rejected by the government delegation, which insisted on workers having continued access to their workplace.
However, employees have not been allowed inside the offices since the facilities were shut earlier this week.
Instead, the Labour Department has been recording the attendance of employees who report daily before asking them to return home.
Warning the company against ignoring the state’s position, Krishna said any attempt to undermine the dignity of Kerala’s workforce would not be tolerated.
She said the government would meet Union Labour Minister Mansukh Mandaviya on Monday to initiate the process for possible prosecution if the company failed to present an acceptable solution during the next round of talks.
The minister also announced that the state would examine the possibility of introducing a workplace wellness policy in the aftermath of the dispute.
Also Read: Kerala to initiate legal action against CorroHealth if talks fail
Ernakulam MP Hibi Eden criticised CorroHealth for what he described as contradictory conduct.
He pointed out that the company had consistently praised the performance of its Kerala employees and had even deputed many of them to train staff at other centres. Against that backdrop, he questioned why only the Kerala units had been selected for closure.
Eden further alleged that the company had gone back on its assurance to provide temporary work to affected employees while discussions were underway.
Labour Commissioner Safna Nazarudeen asked company representatives whether employees could be redeployed to its facilities in other cities. She also suggested that, if relocation for all workers was not feasible, at least experienced employees should be retained instead of terminating the entire workforce.
The meeting was attended by MLA Uma Thomas, the Additional Labour Commissioner, the Regional Labour Commissioner, representatives of trade unions and employees.
Also Read: CorroHealth bars laid-off employees from entering office premises
The dispute began after employees were abruptly told on 3 July that the Kochi and Kozhikode centres were being shut as part of a restructuring exercise.
Workers said the decision came without prior notice, and even local managers appeared unaware of the planned closures.
The workers then point out that it was difficult to accept the explanation of reduced workload when the company has actively been recruiting at its other centres in India.
Employees later received separation letters stating that the company had undertaken a workforce restructuring exercise following a prolonged decline in business in its HCC (hierarchical condition category coding) vertical.
The letters informed staff that their access to company email accounts and servers would end immediately, employee benefits would cease, and they would no longer be permitted to enter company premises or contact clients, consultants, agents or suppliers.
The abrupt action triggered protests from employees, who approached local MLA Uma Thomas.
She, in turn, alerted the Labour Department officials and the Labour Minister, leading to immediate government intervention.
An earlier conciliation meeting held after the layoffs reportedly resulted in an understanding that the existing situation would be maintained until discussions at the Labour Secretary level. The government has since accused the company of violating that assurance by preventing employees from entering the workplace.
Minister Krishna described the company’s decision to disregard the earlier understanding as deeply objectionable and maintained that the state would continue to intervene within the limits of the law to safeguard employees’ interests.
Employees have also questioned the company’s claim that falling business made the Kerala closures unavoidable.
They point out that CorroHealth continued operations in Noida, Hyderabad and Coimbatore, besides recruiting personnel elsewhere in the country.
Employee representatives argued that the decision to exit Kerala appeared to be driven by factors other than workload, alleging that the company found it more difficult to pursue labour practices in Kerala because of stronger legal protections and organised employee resistance.
Also Read: US-based firm puts on hold plan to terminate employees in Kerala
Meanwhile, the Kerala High Court on 9 July asked CorroHealth, employees faced with layoff and the state government to explore an amicable settlement through the conciliation process under the Industrial Relations Code, 2020.
Hearing a petition filed by the company, Justice P Gopinath observed that the state has a social responsibility to facilitate conciliation when the livelihoods of a large number of workers are at stake.
Recording the company’s assurance that it would participate in the conciliation proceedings, including the meeting on 10 July, the court directed all parties to make a genuine attempt to resolve the dispute in accordance with the provisions of the Industrial Relations Code, 2020.
CorroHealth had approached the High Court challenging a communication issued by the District Labour Officer, Ernakulam, directing the company to maintain the status quo on its decision to shut down operations in Kerala and terminate employees.
The company argued that the closure was unavoidable due to circumstances beyond its control and told the court that retrenchment compensation had already been credited to the bank accounts of the affected employees.
Justice Gopinath, however, emphasised that the state was justified in attempting conciliation given the scale of the job losses.
Nearly 800 employees have been reporting each day only to sign the attendance register maintained by the Labour Department before returning home, with no clarity on whether they would eventually regain their jobs.
All eyes are now on 20 July, when CorroHealth is expected to return to the negotiating table with what the government hopes will be a credible proposal capable of breaking the impasse.
(Edited by Majnu Babu).
