Why did CorroHealth shut Kerala offices? Employees cite labour issues, job losses

Kozhikode: Employees of CorroHealth have alleged that the company’s decision to shut down its offices in Kerala was linked to the state’s labour regulations and workplace culture.

The company’s Kozhikode and Kochi offices were closed suddenly, leaving hundreds of employees in uncertainty. Around 400 employees were working at the company’s West Hill Chungam office in Kozhikode alone, while the Kochi office also had a similar number of staff.

Many employees, including those with loans and financial commitments, reached the Kozhikode office on Monday only to find it locked.

Employees allege long working hours and leave restrictions

The Kozhikode office began operations in September 2024. Employees said that during the initial period, staff who reported at 7 am were often made to work until 9 pm.

Following intervention by the Labour Department, the working hours were reportedly reduced from 8 am to 7 pm. 

They alleged that employees were allowed only two leaves per month, including one sick leave. Workers who used both leaves were reportedly downgraded from an A grade, given for good performance, to a C grade.

Employees further claimed that those who took maternity leave, medical leave or extended leave faced further downgrading to D or E grades.

Although Saturdays and Sundays were officially marked as holidays, some departments allegedly required employees to work on weekends without additional benefits. Complaints over these issues had earlier prompted intervention from the Labour Department.

Best-performing offices among those shut

CorroHealth, which operates offices in cities including Noida, Bengaluru, Hyderabad, Chennai and Coimbatore, is a company that spends on Corporate Social Responsibility (CSR) activities. This indicates the company has assets of over ₹500 crore and turnover exceeding ₹1,000 crore.

According to employees, the Kochi and Kozhikode offices consistently ranked among the top-performing branches in terms of productivity and quality during monthly performance reviews. They questioned why the two offices with the best performance records were closed citing losses.

Employees transferred from other states also affected

Several employees who had transferred to Kerala from offices outside the state were also affected by the shutdown. Some who had moved to Kozhikode just a month ago reportedly lost their jobs.

Three months’ salary promised, but only one month paid

Employees said the company had initially promised three months’ salary as compensation for those who lost their jobs. However, they claimed that only one month’s salary was paid.

They added that other payments received were only statutory benefits that employees were already entitled to.

The controversy erupted when hundreds of CorroHealth employees were denied entry to the Kochi office on Monday after receiving termination emails. Security personnel stopped them from entering, citing company instructions, leading to a protest joined by trade unions. The employees were later allowed inside the office.