CorroHealth mass layoffs: CPI(M) calls for State intervention

Strong protests are needed to protect workers and the State government must urgently intervene in the mass layoffs carried out by the US-based Communist Party of India (Marxist) CorroHealth Infotech Private Limited. [CPI(M)] Ernakulam district secretary S. Sathish said in a statement.

‘Layoffs are illegal’

Referring to the alleged layoffs in Ernakulam and Kozhikode districts, Mr. Sathish termed the move as highly objectionable. He said dismissals without prior permission were illegal under the Industrial Disputes Act, 1947, as new labor laws were not yet in force.

The company, which provides medical coding services to American companies, laid off 600 employees from its Palarivattom office in Kochi and 200 employees from its Kozhikode office without prior notice. Employees only learned of the layoffs when they reported to work on Friday, July 3.

He stated that the company is yet to explain why only the Kerala offices have been closed while the offices in Chennai and Noida continue to operate.

He said the decision to lay off employees while offering three months’ salary violated labor laws and workers’ rights.