CorroHealth employees left without clarity; Kerala IT forum wants redeployment before fresh hiring

Kerala's IT employees' welfare organisation Prathidhwani has condemned the reported mass layoff of medical coding professionals at the Kerala operations of US-based healthcare technology company CorroHealth, saying the manner in which employees were dismissed has caused widespread uncertainty and distress.

The organisation said around 900 employees at the company's Kochi and Kozhikode centres were affected. It alleged that many workers were terminated without prior notice and stressed that business decisions should be implemented transparently, humanely and in accordance with the law.

Prathidhwani said employees are entitled to due process, adequate notice, statutory benefits, fair compensation and timely settlement of all legal dues. It added that corporate restructuring should not come at the expense of employees' dignity and livelihoods.

Labour Department intervention

The organisation welcomed the intervention of the Kerala Labour Department, which has called a meeting in Kochi on Monday to discuss the issue.

The meeting, scheduled for 11 am at the Ernakulam Guest House, will be chaired by the Labour Secretary on the instructions of Labour Minister Bindu Krishna. MLA Uma Thomas, Labour Department officials and company representatives are expected to attend.

According to the Labour Department, the layoff process has been temporarily kept in abeyance following its intervention. Whether employees will be able to resume work from Monday is expected to become clear only after the meeting.

Prathidhwani urged CorroHealth to cooperate fully with the authorities to safeguard the rights of the affected employees. It also said that if the company is continuing recruitment at other locations, eligible employees from Kerala should be given priority for redeployment before fresh hiring takes place.

The organisation said it would extend legal guidance, represent affected workers before the Labour Department and assist them in securing statutory benefits and other dues. It also called on IT and healthcare companies to adopt responsible and employee-centric employment practices, particularly during restructuring exercises.

Kozhikode office also shut

Meanwhile, CorroHealth has also shut its office at Chungkam in Kozhikode's West Hill, with employees being informed that operations will not resume.

The company also informed the Kochi-based private firm that had arranged facilities for the office about the closure. By Saturday, only a few employees of the private firm remained at the premises, while no CorroHealth personnel were present.

The closure follows the shutdown of the company's Kochi office. Senior managers were among nearly 400 employees who lost their jobs at the Kozhikode facility. Most of them left on Friday after being informed of the closure.

Employees from several districts had been working at the office. Many said they learnt about the closure and their termination only after reporting for work. They also said they had not been informed of the reasons behind the company's decision.

Kozhikode MLA K M Abhijith has intervened in the matter. However, with operations now fully suspended at the office, the chances of reopening appear uncertain.