Kochi, 10 July (H.S.): The labour dispute arising from the closure of US-based medical coding and healthcare analytics firm CorroHealth Infotech Pvt. Ltd.'s Kerala operations is set to enter a crucial phase on Friday, with a tripartite conciliation meeting scheduled at the Ernakulam Collectorate.
The meeting, to be chaired by Kerala Labour Minister Bindhu Krishna at 11 a.m., will bring together senior Labour Department officials, representatives of the terminated employees and the company's management in an effort to resolve the dispute triggered by the termination of more than 800 employees.
The conciliation process has gained significance after the Kerala High Court directed all stakeholders to participate in the statutory proceedings under the Industrial Relations Code, 2020, and explore the possibility of an amicable settlement.
Justice P. Gopinath issued the direction while hearing a writ petition filed by CorroHealth challenging a communication from the Ernakulam District Labour Officer (DLO), which had asked the company to maintain the status quo and keep its offices open pending the conciliation process.
The High Court clarified that the DLO's communication should not be treated as a binding direction compelling the company to continue its operations, but as part of the statutory conciliation proceedings initiated by the state government. At the same time, the court accepted the state's contention that the government has a responsibility to intervene when the livelihoods of hundreds of employees are suddenly affected.
Appearing for the state, Advocate General K. Jaju Babu argued that the government had a social obligation to protect the interests of workers, particularly as the majority of those affected were women whose livelihoods had been abruptly disrupted.
Following the court's observations, counsel for CorroHealth informed the High Court that the company would cooperate with the Labour Department and participate in the conciliation proceedings.
The dispute began last week after employees arriving at the company's offices in Palarivattom in Kochi and Kozhikode found themselves locked out of the company's systems and were served separation letters with immediate effect. Since then, the employees have been staging protests demanding reinstatement.
The employees contend that the terminations were illegal as they were communicated through plain-paper notices without the mandatory one-month notice period. They have also disputed the company's claim that retrenchment compensation has been paid, arguing that the amounts credited to their bank accounts were only their accrued statutory dues and not retrenchment compensation.
CorroHealth has defended its decision, stating that the closure of its Kerala operations was necessitated by operational challenges beyond its control. The company has argued that the District Labour Officer has no authority under the Industrial Relations Code to compel an employer to continue operations or retain employees during a closure. It has also informed the High Court that retrenchment compensation has already been transferred to the bank accounts of the affected employees.
The outcome of Friday's conciliation meeting is expected to determine whether the dispute can be resolved through negotiations or whether the legal battle between the company, employees and the state government will continue.
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Hindusthan Samachar / Arun Lakshman
