CorroHealth Pauses Layoffs

US-based medical coding company CorroHealth triggered widespread concern in Kerala after announcing the closure of its offices in Kochi and Kozhikode, a move that affected nearly 900 employees. Tensions escalated when employees arriving for their morning shift were reportedly stopped at the entrance. Several employees alleged that they were asked to surrender their ID cards, collect their relieving letters, and leave the premises. The company's offer of three months' salary as severance also drew criticism, with employees demanding a compensation package of at least ten months.

The controversy intensified after employees claimed that while CorroHealth was shutting down its Kerala operations, it was simultaneously hiring for new positions in Hyderabad. Following protests and discussions involving local MLA Uma Thomas, Minister Sunny Joseph, and Labour Department officials, the company temporarily suspended the layoff process. CorroHealth stated that employees could continue reporting to work without any interruption to their salaries or benefits. However, it clarified that a final decision regarding its Kerala operations would be taken after further discussions.