Thiruvananthapuram, 20 July (H.S.):

In a major relief for nearly 800 employees laid off by healthcare technology company CorroHealth from its Kochi and Kozhikode offices, the company has agreed to pay an additional five months' gross salary as compensation following talks convened by the Kerala government on Monday.

Labour Minister Bindu Krishna said the settlement was reached after a series of discussions involving the company, representatives of the affected employees, Labour Department officials and MLA Uma Thomas. Under the agreement, the additional compensation will be credited to the employees by July 26.

Addressing the media after the meeting, the minister said the state government had intervened immediately after receiving complaints from the employees. She said the Labour Department had actively pursued the issue through multiple rounds of negotiations, including meetings chaired by senior officials, the Labour Commissioner and the Special Secretary, before it was taken up at the ministerial level.

According to the minister, CorroHealth initially proposed relocating around 12 per cent of the affected employees to its other centres. However, the government urged the company to increase the number of employees who could be accommodated. The employees, meanwhile, expressed concerns that relocation would not provide long-term job security, as they could still face termination in the future.

Following further negotiations, the company agreed to pay an additional five months' gross salary over and above the salary already disbursed to the terminated employees. CorroHealth also assured the government that it would facilitate the employees' transition to new jobs by issuing experience certificates, relieving letters without adverse remarks and other required documents. It further committed to ensuring smooth background verification so that former employees do not face hurdles while seeking fresh employment.

The layoffs earlier this month had triggered widespread protests by employees, prompting the Labour Department to intervene. Both sides had initially agreed to maintain the status quo while conciliation proceedings were underway. However, the company later sought postponement of a scheduled meeting, leading the Labour Minister to convene fresh talks with the company's senior management.

Employees had also alleged that the company credited two to three months' salary into their bank accounts on the night the layoffs were announced, even as conciliation proceedings were pending before the Labour Department.

During the discussions, CorroHealth reportedly justified the retrenchment by citing provisions relating to fixed-term employment under the new Central Labour Code. The Kerala government, however, rejected the company's argument, maintaining that the new Labour Code has not yet been implemented in the state and therefore cannot supersede the existing labour laws currently in force.

---------------

Hindusthan Samachar / Arun Lakshman