Termination of employees without notice in Kerala

[manojt sarang]

Dear Comrades. 

The new Labour laws have statrted haunting the employees. In Kerala a US based company terminated more than 800 employees on Saturday without any notice. The company has two centres in Kerala. One in Kochi with more than 500 employees and another one in Calicut with 300 employees . Besides this the company have centres in  Chennai, Bengaluru. Noida,  Sector 142, Noida Sector 135, Hyderabad, Coimbatore Tidel Park abd Coimbatore KGISL Sez.

CorroHealth, a US-based healthcare analytics and medical coding company, abruptly terminated around 800–900 employees in Kerala without prior notice, according to employees. 

The company reportedly cited financial constraints and reduced business volumes as the reason for closing its Kerala operations. 

Employees dispute this explanation. They allege the company is continuing to recruit in other locations, including Hyderabad, and claim the Kerala closures are not due to a lack of business. Some employees also allege the company was unhappy with Kerala's labour regulations regarding overtime and working conditions. These are allegations made by employees and have not been independently established. 

The layoffs triggered protests outside the company's offices. The Kerala Labour Department intervened, and the state government called meetings with company representatives and employee representatives in an attempt to resolve the dispute. 

As of today, the government has said it is working to protect employees' interests and is holding further discussions with CorroHealth's senior management. 

The main points of disagreement are:

Company's position: Business conditions and financial viability require restructuring and closure of Kerala operations.

Employees' position: The layoffs were sudden, unfair, and possibly intended to shift work to other states rather than reflecting genuine financial problems.Though the company has violated all  Existing Trade Union Laws , the Govt has very limited powers to interfere. What provoked the company management was that formerly they terminated individual workers without showing any notice and those employees approvhed the labour department of Kerala.