Kerala Labour Dispute: Workers Allege Unlawful Termination Amid Centre's New Labour Codes
A labour dispute has erupted in Kerala after the US-based medical coding company CorroHealth Infotech Private Limited terminated employees at its Kochi and Kozhikode offices without prior notice. The company attributed the layoffs to loss of business, but former Labour Minister V. Sivankutty and the affected workers allege the dismissals violate existing labour laws and are enabled by the Centre's new Labour Codes.
Sivankutty, who is also the state secretary of the Centre of Indian Trade Unions (CITU), led a protest march in Kochi on Thursday. He pointed out that under the Industrial Disputes Act, which remains in force in Kerala because the previous Left government refrained from notifying the new codes, mass layoffs require prior approval from the state government and the Labour department. He said the terminations are illegal without such approval.
The workers claim they were dismissed under the provisions of the new Labour Codes passed by the central government, which they argue give companies the power to hire and fire at will. Sivankutty criticised the Centre for introducing the codes under the pretext of 'ease of doing business', stating that they allow corporate entities to shut down operations arbitrarily. He also noted that the Industrial Relations Code seeks to exclude workers earning above a certain threshold from the definition of 'worker', thereby reducing legal protections.
The company has said the shutdown is due to a loss of business. However, Sivankutty pointed out that CorroHealth is simultaneously recruiting at its centres in Uttar Pradesh and Bengaluru, suggesting a strategy to exploit cheaper labour. He described this as a 'use and dump' policy that threatens the future of educated youth in Kerala if other IT companies adopt similar practices.
Employees at the Kochi office have been denied entry since the terminations, with security guards deployed at the gates. Labour department officials are recording the attendance of workers who report to the office until a scheduled meeting with the Labour Minister on Friday, where an amicable solution is hoped for.
