Kerala HC directs CorroHealth, employees to resolve dispute through conciliation
The Kerala High Court has directed US-based healthcare technology company CorroHealth and its retrenched employees to attempt conciliation as contemplated under the Industrial Relations Code 2020.
Justice Gopinath P issued the direction on a petition moved by the company challenging a communication by the District Labour Officer, Ernakulam, to maintain status quo regarding its decision to close its operations in Kerala and discharge its employees.
The company said it was forced to shut down operations in Kerala due to reasons beyond its control, and resultantly nearly 800 employees had to be retrenched.
It also told the court that it has already transferred the retrenchment compensation to the accounts of its employees. The company contended that the Labour Officer can attempt conciliation of the industrial dispute but cannot direct that the employees shall continue in service in the interim. It also told the court that due to the Labour Officer’s direction, the company was facing a huge organised protest headed by some labour unions.
The company also agreed to cooperate with the conciliation proceedings.
Advocate General (AG) Jaju Babu, appearing for the state Government, told the court that majority of the 800 retrenched employees are women. He said that the state has a social obligation to attempt conciliation in the matter and the Government has convened a meeting on July 10 for the same.
The meeting will be conducted by senior officials of the Labour Department and the company has been requested to attend it, the AG told the court.
After hearing the company and the Government stands, the court said that the Advocate General was right in contending that the state has a social obligation to attempt a conciliation, “especially when a large number of employees are likely to lose employment on account of the closure of operations by the petitioner (Corrohealth) in the state of Kerala”.
Accordingly, it is directed that Ext.P8 (Labour Officer’s communication) need not be treated as a mandate in any manner and need only be seen as a part of the conciliation proceedings initiated by the District Labour Officer.
“It is directed that the parties shall attempt conciliation in the manner contemplated by the provisions of the Industrial Relations Code, 2020,” the court said.
The Labour Department officials had intervened on Tuesday after US-based healthcare technology company CorroHealth denied entry to laid-off employees at its Kochi office.
On Monday, Kerala Labour Commissioner Safna Nazarudeen and Thrikkakara MLA Uma Thomas had held talks with CorroHealth’s legal adviser after the company recently laid off around 850 employees engaged in medical coding work at its Kochi and Kozhikode offices.
Following the meeting, it was decided that the company would allow the employees to enter the office till July 10, when Kerala Labour Minister Bindhu Krishna is scheduled to hold discussions with the management.
However, when the employees turned up for work on Tuesday, they were denied entry to the office, Labour Department officials had said.
The Congress and CPI(M) have extended support to the employees, alleging that the central Government’s Labour Codes enabled companies to terminate people without reporting it to the labour department or the state.
