Published Jul 08, 2026 | 5:17 PM ⚊ Updated Jul 08, 2026 | 5:17 PM
CorroHealth.
Synopsis: The minister also alleged that the company violated the Labour department’s directive to maintain the status quo until the talks. She said the retrenchment appeared to be unlawful, noting that establishments employing more than 300 workers must inform the Labour Department before closure or large-scale retrenchment.
The Kerala government is expected to initiate legal action against US based healthcare solutions company Corro Health if Friday, 10 July’s conciliation talks fail to resolve the dispute over the mass layoffs at its Kerala offices.
Labour minister Bindu Krishna said the government was trying to resolve the issue through discussions to protect employees jobs and retain the company’s operations in the state.
However, she said legal proceedings would follow if no agreement is reached at the July 10 meeting.
The minister also alleged that the company violated the Labour department’s directive to maintain the status quo until the talks.
She said the retrenchment appeared to be unlawful, noting that establishments employing more than 300 workers must inform the Labour Department before closure or large-scale retrenchment.
Meanwhile, uncertainty remains over whether CorroHealth’s senior management will attend the meeting.
Labour officials said the company has so far communicated only through its local legal representative and a formal notice has been issued directing its representatives to appear.
Employees were again denied entry to the company’s Kochi office on Wednesday, 8 July.
Labour officials continued recording the attendance of workers reporting for duty outside the premises and said they would be treated as on duty until the talks.
The dispute erupted after CorroHealth laid off nearly 800 employees, around 600 in Kochi and 200 in Kozhikode.
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 Sreelakshmi Soman)
