CorroHealth row intensifies as Kerala labour minister warns of legal action

The standoff between the Kerala government and US-based healthcare technology firm CorroHealth intensified on Friday (July 10), with Kerala Labour Minister Bindu Krishna warning that legal action would be initiated if the company fails to submit a proposal to continue its operations in the state.

The minister also said she would meet Union Labour Minister Mansukh Mandaviya on Monday to discuss the issue, adding that an appointment had already been secured.

Also read: CorroHealth denies entry to around 850 laid-off medical coders despite govt intervention

CorroHealth has come under scrutiny following the layoff of nearly 800 medical coders at its centres in Kochi and Kozhikode. The issue drew attention after employees were reportedly terminated without prior notice, prompting intervention by the Kerala Labour Department.

Govt’s support

The minister’s statement to reporters came after she met with the company’s representatives, which was also attended by Congress MP Hibi Eden, trade union representatives and district officials.

Krishna said that at the meeting, the government offered all possible help to the company to continue its operations in Kerala and suggested that the employees be transferred to other branches.

The minister said the government had pointed out that, since the company’s work was global in nature and could be carried out from anywhere in the world, there was no need to shut down its Kerala operations.

“The only response the company officials gave was that they did not have sufficient business to continue operating in the state,” she said.

Labour law violation

The minister said that, in view of this response, the company was told it had violated the Industrial Relations Code, 2020, as it had not given prior notice to the government before deciding to close its operations and could therefore face appropriate action.

Also read: Kerala labour department halts layoff process after 900 medical coders face termination

“Subsequently, the company officials, who attended the meeting online, said they would discuss the matter with their seniors and come to Kerala in person on July 20 with proposals for continuing operations in the state,” she contended.

She said the company refused the government’s request to allow employees to enter the office until then, and instead told them to “stay at home”. “This stand was strongly opposed by us, but they did not agree to our proposal on this aspect,” Krishna said.

She and Eden told reporters that the company officials had appreciated and acknowledged the work of their employees in Kerala, noting that many of them had travelled to the company’s other centres to train staff there.

‘Double standards’

Furthermore, the company had so far been operating profitably in Kerala, they said, adding that this exposed CorroHealth’s “double standards”.

Eden said the company had claimed it was unable to hire new employees or secure new business because of the latest US policy.

“However, the minister pointed out that it was hiring new people in other states and suggested that some of the new verticals they were getting in those centres be diverted to Kerala,” he said.

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Krishna said the issue of compensation was not being considered at present, as the government wanted the company to continue operating in Kerala and retain the employees there. “We have told them to try and bring more business here,” she added.

Kerala HC’s intervention

The Kerala High Court had on Wednesday (July 8) directed the company, its employees and the government to attempt conciliation to resolve the labour dispute.

The court said that the state had a social obligation to attempt conciliation, “especially when a large number of employees are likely to lose employment on account of the closure of operations by the petitioner (CorroHealth) in the state of Kerala”.

Labour department officials had intervened on Tuesday after a US-based healthcare technology company, CorroHealth, denied entry to laid-off employees at its Kochi office.

Timeline of events

On Monday, Kerala Labour Commissioner Safna Nazarudeen and Thrikkakara MLA Uma Thomas held talks with CorroHealth’s legal adviser after the company recently laid off around 850 employees from its medical coding units in Kochi and Kozhikode.

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Following the meeting, it was decided that the company would allow the employees to enter the office until July 10, when Krishna was scheduled to hold discussions with the management.

However, when the employees turned up for work on Tuesday, they were denied entry to the office, officials said.

The Congress and CPI(M) have extended support to the employees, alleging that the central government’s labour codes enabled companies to terminate employees without reporting it to the labour department or the state government.

(With agency inputs)