850 Kerala employees laid off by CorroHealth to get 5 months' gross salary

Published 20 July 2026 · health

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 offices

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 offices, Labour Minister Bindhu Krishna said on Monday after talks mediated by the state government. She said the amount would be credited by July 26. Krishna said the settlement was reached after sustained discussions involving the Labour Department, the company's management, employee representatives and trade unions. The affected staff, who were engaged in medical coding at the company's Kochi and Kozhikode centres, had recently lost their jobs. Read Full Story Speaking to reporters after a meeting with the management in Kochi, the minister said officials had first held talks under the labour commissioner. When those discussions did not lead to a settlement, a ministerial-level meeting was held on July 10.

She said the company had initially said it could not accept many of the demands raised by the government and employee representatives. "Today's discussions were very fruitful. Taking into account the concerns and best interests of the employees, we have reached a settlement," she said. "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." Krishna said the government had rejected the company's proposal to relocate 12 per cent of the employees to its other centres after consulting the affected staff, who raised concerns about job security at those locations. She said the company had also agreed to issue experience certificates, relieving letters and all other employment-related documents by July 26 without any adverse remarks. "The company has assured that all documents required by the employees will be issued without any adverse remarks so that they do not face difficulties while seeking new employment," she said.

She added that CorroHealth had agreed to facilitate background verification for employees applying to new organisations and provide Form 16, payslips and full-and-final settlement documents. The agreement will be formalised through a memorandum of understanding to be signed by representatives of the company and the employees on July 26. The minister said the layoffs had caused widespread concern in Kerala, especially among young professionals, and the government had intervened immediately. "The government took a very strict stand. Labour Department officials, including the Special Secretary and Labour Commissioner, remained in constant touch with the company management, employee representatives and trade unions," she said. Asked about the rehabilitation of the laid-off employees, Krishna said the government would hold discussions with the IT department, the IT minister and CM V D Satheesan before deciding the next course of action.