Kerala’s labour department has summoned CorroHealth, a Texas-based medical coding and healthcare solutions company, for a high-level meeting on July 6 after the firm abruptly terminated close to 900 employees at its Kochi and Kozhikode offices without prior notice.
Employees said they reported to work as usual on Friday, July 3, only to be logged out of their systems within hours and told that CorroHealth’s Kerala operations, roughly 600 staff at the Palarivattom office in Kochi and about 200 at Kozhikode, were shutting down permanently.
The company cited financial constraints, but workers disputed the claim, alleging CorroHealth is simultaneously hiring for its Hyderabad and Uttar Pradesh centres. The protests that followed outside the Kochi office drew in Thrikkakara MLA Uma Thomas and the District Labour Officer, who negotiated an understanding that the terminations would be put on hold until the government-mediated talks.
That understanding came under strain almost immediately. Employees said CorroHealth credited three months’ salary to nearly 800 terminated staff late on Friday night and asked them to return Monday, moves the workers see as an attempt to close out the terminations before the scheduled meeting. Kerala’s Labour Minister, Bindhu Krishna, pushed back on the timing.
“We have a strong concern regarding the company’s sudden stance since the money was credited to the accounts last night. Initiating an action that directly violates that collective assurance is highly objectionable,” the minister said, adding that the government would “absolutely intervene in this matter to the highest extent of its legal jurisdiction to safeguard the rights of the workers.“
The state government has also rejected CorroHealth’s reported reliance on the new central labour codes to justify the exits, pointing out the codes have not yet been implemented in Kerala. Employees allege the real friction is over compliance with the state’s overtime rules.
“The reason they are giving is that they have no profit, but why is Kerala alone being ignored? They are already hiring thousands of people in the UP and Hyderabad offices,” said Vishnu, a manager among those terminated, who added that the branch had already filed several labour disputes against the company.
For now, affected employees continue reporting to work with salaries and benefits unchanged, pending the outcome of Monday’s meeting chaired by the state Labour Secretary, which CorroHealth’s senior management is expected to attend. Workers are seeking reinstatement, or failing that, compensation equal to ten months’ salary. CorroHealth has not issued a public statement on the layoffs. The case adds to a string of sudden India job cuts at global back-office and BPO units this year, and will be watched closely for how it tests the reach of state labour departments over US-headquartered employers operating in India.
