Published Jul 20, 2026 | 9:28 PM ⚊ Updated Jul 20, 2026 | 9:28 PM
The second-round settlement talk chaired by Minister Bindu Krishna on Monday.
Synopsis: Nearly 800 former CorroHealth employees in Kerala have secured an improved compensation package after fresh talks convened by the state government, with the company agreeing to pay an additional five months’ gross salary on top of the two months already announced. The agreement also provides for experience certificates, relieving letters and other employment documents, along with support to help workers find new jobs.
Nearly three weeks after US-based healthcare solutions company CorroHealth’s sudden decision to shut down its Kerala operations threw around 800 employees out of work, the affected workers have secured a significantly improved compensation package following fresh talks convened by the state government.
After a meeting chaired by Labour Minister Bindu Krishna at the Secretariat Annex on 20 July, the company agreed to pay an additional five months’ gross salary to the laid-off employees.
The amount will be paid over and above the two months’ salary that had already been announced by the company following the closure.
The additional compensation is expected to be credited to employees by 26 July.
An agreement formalising the decision was signed after the meeting.
The company also agreed to issue experience certificates, relieving letters and all other employment-related documents without delay. It has further committed to extending necessary support to help former employees secure new jobs.
While the enhanced compensation has brought immediate financial relief, it does little to address the biggest concern confronting hundreds of affected workers: finding fresh employment in a difficult job market.
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Labour Minister Bindu Krishna, speaking after the meeting, said the decision was reached after taking into account the hardships faced by those who lost their jobs.
Minister Bindu Krishna along with officials and other representatives during the settlement talk on Monday
She said discussions were held with company representatives, employee representatives and trade union leaders with the objective of ensuring justice for the workers.
According to the minister, the company accepted the government’s proposal to pay five additional months’ salary besides the two months already offered. It also agreed to provide experience certificates, relieving memos and other required documents, besides offering assistance to employees in finding alternative employment.
The minister described the outcome as positive, saying the company had accepted the government’s key demands aimed at protecting the interests of the affected workforce.
The meeting was attended by Thrikkakara MLA Uma Thomas, Labour Department Special Secretary Sheeba George IAS, the Labour Commissioner, senior Labour Department officials, representatives of CorroHealth, employee representatives and trade union office-bearers. While some company representatives attended in person, senior officials joined through video conference.
The agreement marks a major development in a dispute that began on 3 July, when CorroHealth abruptly announced the permanent closure and wind-down of its Kochi and Kozhikode centres, leaving nearly 800 employees without jobs.
The move sparked widespread protests by employees and trade unions and prompted intervention by both the state government and the Kerala High Court.
On 9 July, the High Court, while hearing a petition filed by the company, asked CorroHealth, the employees and the state government to explore an amicable settlement through the conciliation process under the Industrial Relations Code, 2020.
Justice P Gopinath observed that the state had a social responsibility to facilitate conciliation when the livelihoods of a large number of workers were at stake. The company had argued before the court that the closure was unavoidable and said retrenchment compensation had already been credited to employees’ bank accounts.
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The first round of conciliation talks, held on 10 July at the Ernakulam Collectorate, ended without any breakthrough, with CorroHealth maintaining that shutting down its Kerala operations was the only viable option.
After that meeting, Labour Minister Bindu Krishna said the government had extended every possible support to help the company continue operations in Kerala. She also noted that official records indicated the company was functioning profitably and questioned why such an international firm had chosen to exit the state.
The government asked the company to return with a proposal within 10 days and directed senior officials to attend the next round of discussions in person.
During that phase of the dispute, the minister also observed that the issue appeared to be one of closure rather than retrenchment, a distinction with important legal implications under labour laws.
Ernakulam MP Hibi Eden had meanwhile accused the company of adopting double standards, alleging that it had failed to honour its assurance of providing temporary work to the affected employees during the negotiations.
Monday’s agreement has eased one part of the crisis by substantially improving the compensation package. For hundreds of former employees, however, the larger battle now is rebuilding their careers after an abrupt end to their jobs.
One of the representatives of the laid-off employees said to the media, “The additional compensation will certainly help us manage for a few months, and we appreciate the government’s intervention in securing a better package. But our biggest worry is what comes next. The job market is already going through a difficult phase, and finding another job with similar pay and experience won’t be easy. Many of us have families, home loans and other financial commitments. The uncertainty is far more frightening than the layoff itself.”
