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US-based healthcare company CorroHealth Infotech Pvt. Ltd. last week shut down its operations in Kochi and Kozhikode, leaving around 800 employees without jobs and allegedly without prior notice.
The move triggered protests bylaid-off e mployees and trade unions, prompting the District Labour Officer to initiate conciliation, Live Law reported.
The direction came while Justice P Gopinath was hearing a writ petition filed by the company. The company had challenged the District Labour Officer's communication asking it to maintain status quo on its decision to shut down operations in Kerala and lay off employees.
Appearing for the company, senior counsel S. Sreekumar submitted that Corrohealth was forced to cease operations due to circumstances beyond its control.
The company also informed the court that retrenchment compensation had already been paid to employees and assured that it would cooperate with the conciliation proceedings.
The company also argued that the Labour Officer did not have the authority under the Industrial Relations Code, 2020, to direct it to continue employing workers while conciliation proceedings were underway.
Representing the State, Advocate General K. Jaju Babu told the court that the closure had affected around 800 employees, most of them women. He said the state had a social obligation to facilitate conciliation and informed the court that the Labour Minister had convened a meeting on July 10 at the Ernakulam Collectorate to resolve the dispute.
Agreeing with the state's submission, the High Court observed that the government had a social responsibility to attempt conciliation when a large number of employees were at risk of losing their employment.
“The submission made on behalf of the petitioner that the petitioner will participate in the conciliation proceedings and will attend the meeting convened on 10-07-2026 is recorded. It is directed that the parties shall attempt conciliation in the manner contemplated by the provisions of the Industrial Relations Code, 2020,” the court said, as per Live Law.
It also clarified that the Labour Officer's communication should not be treated as a mandate but as part of the ongoing conciliation process, before disposing of the petition.
Meanwhile, uncertainty continued to surround hundreds of CorroHealth employees in Kerala as they remained locked out of the company's Kochi office on Wednesday.
According to The Hindu, Labour Department officials recorded the attendance of employees who reported to work. A conciliation meeting convened by Labour Minister Bindhu Krishna with senior company officials is scheduled for Friday to discuss the issue.
The move triggered protests bylaid-off e mployees and trade unions, prompting the District Labour Officer to initiate conciliation, Live Law reported.
The direction came while Justice P Gopinath was hearing a writ petition filed by the company. The company had challenged the District Labour Officer's communication asking it to maintain status quo on its decision to shut down operations in Kerala and lay off employees.
Appearing for the company, senior counsel S. Sreekumar submitted that Corrohealth was forced to cease operations due to circumstances beyond its control.
The company also informed the court that retrenchment compensation had already been paid to employees and assured that it would cooperate with the conciliation proceedings.
The company also argued that the Labour Officer did not have the authority under the Industrial Relations Code, 2020, to direct it to continue employing workers while conciliation proceedings were underway.
Representing the State, Advocate General K. Jaju Babu told the court that the closure had affected around 800 employees, most of them women. He said the state had a social obligation to facilitate conciliation and informed the court that the Labour Minister had convened a meeting on July 10 at the Ernakulam Collectorate to resolve the dispute.
Agreeing with the state's submission, the High Court observed that the government had a social responsibility to attempt conciliation when a large number of employees were at risk of losing their employment.
“The submission made on behalf of the petitioner that the petitioner will participate in the conciliation proceedings and will attend the meeting convened on 10-07-2026 is recorded. It is directed that the parties shall attempt conciliation in the manner contemplated by the provisions of the Industrial Relations Code, 2020,” the court said, as per Live Law.
It also clarified that the Labour Officer's communication should not be treated as a mandate but as part of the ongoing conciliation process, before disposing of the petition.
Meanwhile, uncertainty continued to surround hundreds of CorroHealth employees in Kerala as they remained locked out of the company's Kochi office on Wednesday.
According to The Hindu, Labour Department officials recorded the attendance of employees who reported to work. A conciliation meeting convened by Labour Minister Bindhu Krishna with senior company officials is scheduled for Friday to discuss the issue.
