CorroHealth layoff row: Kerala HC backs conciliation amid protests; crucial ministerial talks today

Kochi: All eyes are on a crucial meeting scheduled for Friday (July 10) between Kerala Labour Minister Bindhu Krishna and senior executives of US-based healthcare technology company CorroHealth, with the future of hundreds of retrenched employees expected to dominate discussions. The meeting comes after days of protests, political intervention and legal proceedings, while the Kerala High Court has directed both sides to attempt conciliation under the Industrial Relations Code, 2020.

The talks are being closely watched after the state government warned that it would consider legal action if the discussions fail to produce a settlement. Labour authorities have also maintained that the company did not provide prior intimation before deciding to shut its Kerala operations.

High Court backs conciliation process

The Kerala High Court on Friday directed CorroHealth and its retrenched employees to attempt conciliation as provided under the Industrial Relations Code, 2020.

Justice Gopinath P issued the direction while hearing a petition filed by the company challenging a communication from the District Labour Officer, Ernakulam, asking it to maintain the status quo over its decision to close operations in Kerala and discharge employees.

CorroHealth argued that it had been compelled to shut its Kerala operations due to circumstances beyond its control, resulting in the retrenchment of nearly 800 employees. It told the court that retrenchment compensation had already been transferred to employees' bank accounts.

The company contended that while the Labour Officer could initiate conciliation, the authority could not direct that employees continue in service during the process. It also submitted that the order had triggered organised protests led by labour unions, adding that it would cooperate with the conciliation proceedings.

Appearing for the state, Advocate General Jaju Babu said the majority of the affected employees were women and argued that the government had a social obligation to attempt conciliation before taking further action.

The court agreed, observing that the state's stand was justified, "especially when a large number of employees are likely to lose employment on account of the closure of operations by the petitioner in the state of Kerala."

It clarified that the Labour Officer's communication should not be treated as a binding direction but only as part of the ongoing conciliation process, and directed both parties to participate in conciliation in accordance with the Industrial Relations Code.

Government pins hopes on July 10 meeting

The Labour Department has convened Friday's meeting with senior company officials as part of its efforts to resolve the dispute.

Earlier this week, Labour Commissioner Safna Nazarudeen said the government would not initiate legal proceedings against CorroHealth before the ministerial meeting. However, she warned that legal action would be considered if the talks failed.

The commissioner also said the government had not received prior notice from the company regarding the closure of its Kerala operations. Under the Industrial Disputes Act, establishments employing more than 100 workers are required to obtain prior government permission before closing operations and must provide advance notice.

Employees remain locked out as protests intensify

Uncertainty continued through the week as employees reported being denied entry to CorroHealth's Kochi office despite earlier discussions between the Labour Department and the company.

On Wednesday and Thursday, Labour Department officials recorded the attendance of employees who reported for work after they were prevented from entering the office. Employees signed the attendance register before remaining in the parking area while awaiting the outcome of Friday's talks.

The Labour Department had intervened after laid-off employees were denied entry to the Kochi office, despite an earlier understanding that they would be allowed to continue entering the premises until the July 10 discussions.

The company has remained firm on its decision to close its Kochi and Kozhikode centres.

Trade unions, IT employees' forum stage demonstrations

Protests gathered momentum on Thursday, with CITU and INTUC organising marches to the company's Kochi office in support of the retrenched employees.

Kerala IT employees' welfare organisation Prathidhwani also held a solidarity campaign outside Technopark Phase I in Thiruvananthapuram on Thursday evening under the banner "United Against Unfair Layoffs."

The forum said it was deeply concerned by reports that employees had been laid off without prior notice or adherence to statutory procedures. While acknowledging that companies have the right to take business decisions, it said such decisions must be implemented in a lawful, transparent and humane manner.

Prathidhwani said employees who had served organisations for years should not lose their livelihood without adequate notice. It called on employers to ensure statutory benefits, fair compensation and dignified treatment for affected workers.

The organisation also expressed concern over what it described as a growing trend of unfair layoffs and forced resignations in the IT sector, saying employees are an organisation's greatest asset and their rights, dignity and job security must be protected.

The Congress and the CPM have also extended support to the affected employees, alleging that the Centre's labour codes have enabled companies to terminate workers without reporting the action to the Labour Department or the state government.