CorroHealth Infotech Private Limited,a U.S.-based tech company,has axed around 800 workers from its Kochi and Kozhikode offices. Citing operational losses, the company faces backlash from the Kerala Government and opposition, who slammed move as illegal.
Kerala Labour Minister Bindu Krishna plans to bring up the issue with Union Labour Minister Mansukh Mandaviya on July 13,2026. Union Government staying mum so far. State officials argue the new Labour Codes might have shielded workers better.
Critics like K.C. Venugopal and ex-Labour Minister V . Sivan Kutti blame Labour Codes for enabling such layoffs. They claim these codes eroded worker protections, letting firms sidestep oversight.
The Industrial Relations Code lumps several older laws together, defining retrenchment as any non-disciplinary firing. It requires employers to give one month's notice and pay fifteen days' average salary for each year of service.
New rules demand employers inform the Central Government and labour commissioner about planned layoffs. Must file detailed electronic application,stating reasons, and notify affected employees.
Chapter XI of code sets up a worker re-skilling fund. Employers must contribute fifteen days' wages per retrenched worker to help during transition .
In Kerala, things get messy as state halted Labour Codes after union pressure. An expert panel led by retired Judge V. Gopal Gowda had slammed codes for veering away from constitutional principles, siding with corporates over workers.
Post-elections,new United Democratic Front (UDF) government plans broad consultations on Labour Codes. Minister Krishna said no final stance yet,will review Gowda committee's suggestions .
Kerala unions say old laws like Industrial Disputes Act still rule since Labour Codes aren't adopted. Fredy K . Thazhath, head of Trade Union Centre of India,insists state laws override, calling CorroHealth's mass firings illegal without state nod.
Thazhath blasted Union Government for ignoring retrenchment legality,suggesting a tilt toward foreign firms at local workers' cost. "An employer cannot fire 800 workers on its own without the permission of the government . That is illegal." What happens next for workers in Kerala...?
