The Kerala Government held another round of discussions with representatives of CorroHealth, a US-based healthcare technology company, in an effort to resolve the ongoing dispute over the large-scale layoffs announced at its Kochi and Kozhikode offices. The talks, led by the State Labour Department, focused on protecting employees’ jobs while encouraging the company to continue its operations in Kerala.
The dispute began after CorroHealth announced the termination of around 800–900 employees, citing financial constraints and a decline in business volumes. The sudden layoffs triggered protests by employees and trade unions, who alleged that the company acted without following due legal procedures. The Kerala Government subsequently intervened and directed the company to maintain the status quo while conciliation efforts were underway.
During the latest meeting, Labour Minister Bindu Krishna urged the company to reconsider its decision and retain its workforce until a mutually acceptable solution could be reached. Government officials emphasized that protecting employment and ensuring compliance with labour laws remain the state’s top priorities. They also warned that legal action could be initiated if the company failed to cooperate with the conciliation process or violated labour regulations.
CorroHealth maintained that its decision was driven by global business conditions and operational challenges. However, employee representatives argued that the layoffs were abrupt and caused significant uncertainty for hundreds of families. They have demanded reinstatement, greater transparency, and adherence to applicable labour laws before any restructuring is carried out.
Meanwhile, the Kerala High Court has also taken note of the dispute and directed the company, employees, and the State to pursue conciliation under the provisions of the Industrial Relations Code in an effort to resolve the matter through dialogue. The court’s intervention has added momentum to the negotiations, with both sides expected to continue discussions in the coming days.
The outcome of these talks is being closely watched by Kerala’s IT and healthcare technology sectors, as it could have broader implications for employment practices and investor confidence in the state. Government officials have reiterated their commitment to balancing industrial growth with the protection of workers’ rights.
