US-based health technology company CorroHealth has agreed to pay five months' gross salary as compensation to around 850 employees laid off from its Kerala operations, following negotiations led by the state government.
According to statements made by Kerala Labour Minister Bindhu Krishna, the compensation will be credited by 26 July.
The settlement follows a series of discussions involving the Kerala Labour Department, CorroHealth's management, employee representatives and trade unions after employees at the company's Kochi and Kozhikode medical coding centres lost their jobs.
Months of discussions lead to settlement
Speaking to reporters in Kochi after a meeting with the company's management, Krishna said the agreement was reached after multiple rounds of negotiations.
According to the minister, discussions initially took place under the Labour Commissioner. After those talks failed to produce an agreement, the state government convened a ministerial-level meeting on 10 July.
Krishna said CorroHealth had initially declined several demands raised by the government and employee representatives before agreeing to the final settlement.
"The company has agreed to pay five months' gross salary, excluding the two months' salary announced earlier. The amount will be credited by July 26," she said.
Settlement includes compensation and employment support
Beyond financial compensation, the agreement also covers documentation and assistance intended to help former employees secure new jobs. Under the settlement, CorroHealth has agreed to:
- Pay five months' gross salary to around 850 laid-off employees, excluding the two months' salary announced earlier.
- Credit the compensation by 26 July.
- Issue experience certificates, relieving letters and other employment documents by 26 July without adverse remarks.
- Facilitate background verification for employees joining new organisations.
- Provide Form 16, payslips and full-and-final settlement documents.
- Formalise the agreement through a memorandum of understanding to be signed by company and employee representatives on 26 July.
Krishna said the company had assured the government all employment-related documents would be issued without negative remarks so employees would not face difficulties while seeking new opportunities.
Government rejects relocation proposal
During the negotiations, the Kerala government also rejected CorroHealth's proposal to relocate 12% of the affected employees to its other centres.
According to Krishna, the decision followed consultations with the laid-off employees, who expressed concerns about job security at the proposed locations.
The minister said the government prioritised employees' interests throughout the negotiations and maintained sustained engagement with the company until a settlement was reached.
Further support under discussion
Krishna described the layoffs as a matter of significant concern in Kerala, particularly for young professionals employed in the state's technology sector.
She said the government would now hold discussions with the IT Department, the IT Minister and Chief Minister V D Satheesan before deciding on further rehabilitation measures for the affected employees.
The minister also acknowledged the role played by employee representatives and trade unions during the negotiations, saying their coordinated efforts helped secure the final agreement.
The settlement concludes weeks of discussions over the layoffs and provides financial compensation alongside employment support for the affected workers. With payments and documentation scheduled to be completed by 26 July, attention is expected to shift towards helping the former employees find new opportunities.