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Dashing the hopes of nearly 800 employees, a meeting chaired by Kerala Labour Minister Bindhu Krishna on Friday (July 10, 2026) to resolve the crisis over the unilateral mass lay-offs by US technology firm CorroHealth Infotech Private Limited at its Kochi and Kozhikode centres ended without a breakthrough. The State government has issued an ultimatum to the medical coding company to present alternative proposals to retain its workforce in Kerala or face prosecution for alleged violations of labour laws.
The meeting, held at the District Collectorate, was attended by Ms. Krishna and senior officials, while company representatives joined virtually, with its legal advisor present in person. The firm has been directed to return for a second round of negotiations with concrete proposals on July 20.
Move illegal: Minister
The Minister said that although the company described the lay-offs as retrenchment, in reality it amounted to closure, which is “illegal” even under the newly legislated Industrial Relations Code when carried out without prior notice to the State government.
“The company’s website shows it was profitable, yet officials had no clear explanation for why centres in Noida and Hyderabad remain operational while those in Kerala alone were shut citing loss of work. We have asked them to introduce their profitable verticals here if that is the case. We have made it very clear that any action undermining the dignity of Kerala’s labour force is unacceptable to us. We will meet Union Labour Minister Mansukh Mandaviya on Monday as part of initiating prosecution measures if the company fails to take a favourable decision,” Ms. Krishna said.
Asked about employee compensation, she clarified that it was not under discussion, as retaining the company in the State was the sole priority.
While the government delegation insisted that employees be allowed access to offices until the July 20 meeting, the company proposed that they remain at home. The suggestion was strongly opposed by the government delegation. Employees have been denied entry to offices, which have remained closed since Monday, and the Labour department has been marking attendance for those reporting daily.
MP accuses firm of double standards
Hibi Eden, MP, accused the company of double standards, pointing out that it had no complaints against the workforce but was appreciative of them and had even deployed them for training in other centres.
Labour Commissioner Safna Nazarudeen questioned whether employees could be accommodated in other centres, or at least whether those other than the new recruits could continue.
The meeting was also attended by MLA Uma Thomas, the Additional Labour Commissioner, the Regional Labour Commissioner, and representatives of trade unions and employees.
In the lead-up to the meeting, employees had been hopeful that their future would be secured and that they would be reinstated.
“We were expecting a positive outcome. After all, it is not easy for 800 people to find new jobs under the current circumstances. Competition is intense, with fresh batches entering the job market every three months, while vacancies available are far less,” said one employee.
Earlier in the day, the Democratic Youth Federation of India staged a protest march to the company’s office in Kochi.
English (US) ·