CorroHealth layoff: Kerala Government freezes termination of 900 tech workers in Kochi and Kozhikode

KOCHI: The management of CorroHealth, a US-based medical coding firm, has put on hold its decision to implement mass layoffs following a swift intervention by the Kerala state government. The company's operations will continue under a status quo agreement until high-level discussions are held with senior management officials.

The development followed intense protests by employees after CorroHealth abruptly terminated nearly 900 staff members without prior notice and shut down its offices in Kochi and Kozhikode. Employees discovered they had lost their jobs only when they reported for work in the morning.

While the company cited financial constraints as the reason for closing its offices, the employees disputed this claim. Protesting workers alleged that the company’s justification was groundless, pointing out that CorroHealth is actively recruiting new candidates for its other locations, including Hyderabad. Labelling the management's sudden move as inhumane, the disgruntled workers staged a protest in the morning, demanding a minimum of 10 months' compensation if the company went ahead with the closure. The management had initially stated that compensation would be disbursed within three months.

The mass termination was temporarily frozen after the state Labour Minister and Uma Thomas, MLA, intervened in the matter. Following the government's mediation, it was decided that employees could continue to report to work as usual, and their salaries and other benefits would remain unaffected until a final resolution is reached.

A decisive meeting to resolve the crisis has been scheduled for the 6th of this month in Thiruvananthapuram. The talks will be conducted in the presence of the state Labour Secretary, where the next steps regarding the company's operations and employee security will be determined.