The Kerala High Court has directed US-based healthcare technology firm CorroHealth and its retrenched employees to enter conciliation talks under the Industrial Relations Code 2020. The decision follows the company’s sudden shutdown of its operations in the state, which has impacted hundreds of workers.
Justice Gopinath P issued the directive in response to a petition filed by the company. CorroHealth had challenged a communication from the Ernakulam District Labour Officer that ordered the company to maintain the status quo regarding its closure and staff termination. The High Court clarified that the Labour Officer’s status-quo directive should not be treated as a mandate, but rather as an element of the ongoing conciliation process.
The court agreed with the state government’s position that the state has a social obligation to intermediate, particularly when a massive workforce faces sudden unemployment.
Government Interventions And Scheduled Meetings
Advocate General Jaju Babu, representing the Kerala government, told the court that a majority of the affected employees are women. He stated that the state is actively pursuing a resolution and has scheduled a conciliation meeting for July 10, to be led by senior Labour Department officials. The company has been requested to attend the discussions.
Prior to the court’s order, Kerala Labour Commissioner Safna Nazarudeen and Thrikkakara MLA Uma Thomas held talks with CorroHealth’s legal adviser on Monday. Although the parties initially agreed to allow employees entry to the Kochi office until a planned July 10 meeting with Kerala Labour Minister Bindhu Krishna, workers were reportedly blocked from entering on Tuesday, drawing further intervention from labor officials.
Company Position And Political Reactions
CorroHealth, which employed staff for medical coding work at its Kochi and Kozhikode branches, stated that unavoidable circumstances forced it to shut down its state operations, resulting in the layoff of around 800 to 850 employees. The management stated it has already transferred retrenchment compensation to the workers’ accounts.
While cooperating with conciliation, the company argued that the Labour Officer lacks the authority to mandate that staff remain employed in the interim, adding that the status-quo order had triggered large labor union protests.
The laid-off employees have received backing from the Congress and CPI(M) parties. Both political groups have criticized the central government’s current Labour Codes, claiming they allow companies to lay off employees without notifying state governments or local labor departments.
