In a major relief for workers hit by sudden job cuts, CorroHealth has agreed to pay an additional five months’ gross salary to nearly 850 employees laid off from its Kerala offices.
The decision came after a settlement meeting on July 20, led by Labour Minister Bindu Krishna at the Secretariat Annex. This amount will be paid over and above the two months’ salary the US-based healthcare company had already given at the time of closure.
The layoffs, announced earlier this month, impacted about 600 employees in Kochi and 200 in Kozhikode. Employees were denied entry to offices without prior notice, sparking protests and complaints to local authorities. MLA Uma Thomas first raised the issue, following which the Labour Department stepped in.
During talks, the company initially proposed shifting 12 per cent of the workforce to other locations. Workers and the government opposed it, saying transfers did not ensure long-term job security.
As per the agreement signed after the meeting, CorroHealth will credit the full compensation by 26 July. It will also provide experience certificates, relieving letters, and other documents promptly, and offer support for background checks to help staff find new jobs.
Minister Krishna stated that the government held multiple rounds of discussions, including a ministerial-level meeting on 10 July, to address grievances.
While the payout offers short-term financial support, the bigger challenge for employees remains re-employment. Most affected staff worked in medical coding, a function now facing pressure from automation and AI adoption in healthcare.