Kochi: US-based medical coding firm CorroHealth has begun disbursing an additional five months’ salary to nearly 800 sacked employees from its Kochi and Kozhikode units, along with key employment documents, implementing the Memorandum of Understanding (MoU) reached with the Kerala government after weeks of protests over the company’s abrupt exit from the state.
The latest payout takes the total compensation package to seven months’ salary, including the two months’ salary, leave encashment and skilling allowance paid earlier. Under the agreement reached during a high-level conciliation meeting in Thiruvananthapuram on July 20, the company had committed to crediting the additional amount before July 26.
CorroHealth has also issued affected employees their experience certificates, relieving letters and documents required for background verification. Employee Provident Fund (PF) and other statutory full-time employee benefits have also been preserved.
The dispute erupted earlier this month after CorroHealth abruptly shut down its Kerala operations, terminated nearly 800 employees without prior notice and allegedly locked staff out of its Kochi and Kozhikode offices. The move triggered protests by employees and prompted the State Labour Department to warn the company of possible violations of the Industrial Relations Code.
Although the Kerala government initially pressed CorroHealth to resume operations and safeguard jobs, the company cited operational constraints that prevented it from continuing in the state. The negotiations subsequently shifted towards securing an enhanced compensation package for the displaced employees.
The July 20 conciliation meeting was chaired by Labour Minister Bindu Krishna and attended by Labour Secretary Sheeba George, Thrikkakara MLA Uma Thomas, and representatives of labour unions, including BMS and CITU.
CorroHealth’s India Country Head Yadvinder Singh Jaspal, two Vice Presidents of Human Resources, and HR heads from its Kochi and Kozhikode offices attended the meeting. A four-member delegation of the sacked employees also took part in the negotiations.
“In the discussion, we initially demanded a 10-month salary compensation,” recalled Vishnu Prasannan, one of the sacked employees. “Through the negotiation process, we arrived at a consensus for an additional five months, bringing the total compensation package to seven months.”
Confirming that the company has begun implementing the settlement, Prasannan said, “They specified July 26 as the deadline to clear the amounts, and today they credited the five months’ salary.”
“Regarding the exit formalities, our experience certificates, relieving orders and necessary documents have also been shared. PF and all full-time benefits remain intact,” he said.
As far as the company’s obligations from the meeting go, they have fulfilled the conditions agreed upon. “There are no further talks planned with the company now. The crisis has come to an end, and our focus now is on finding new employment,” Prasannan added.
