CorroHealth Mass Lay Off: Kerala High Court Directs Parties To Attempt Conciliation As Per Industrial Relations Code

Last week, the US-based healthcare company suddenly decided to shut down its operations in Kochi and Kozhikode, leaving around 800 employees discharged without prior notice. This led to protests by trade unions and laid off employees, and the Labour Officer intervening in the matter by initating conciliation.

Justice P. Gopinath was considering a writ petition filed by Corrohealth challenging the communication issued by the District Labour Officer, Ernakulam directing it to maintain status quo on the decision to close down operations in Kerala and to discharge employees.

Senior Counsel S. Sreekumar, instructed by Advocate Aamir Sohrab M.M., appearing for Corrohealth, pointed out that the company was forced to shut down due to reasons beyond its control. It was also submitted that the employees were already given retrenchment compensation but there is a huge organized protest by labour unions asking it to continue their employment.

Further, it was contended that the Labour Officer did not have any authority under the 2020 Code to direct that the employees shall be continued in service pending conciliation proceedings. The company agreed to fully cooperate with the conciliation proceedings.

Advocate General K. Jaju Babu appearing for the State, Labour Commissioner and other officers submitted that the company's decision to close down operations has affected around 800 employees, the majority of whom are women. He also submitted that the State has a social obligation to attempt a conciliation in the matter and that Minister for Labour has convened a meeting to do so.

The AG further informed the Court that a meeting is scheduled at 11 am on Friday (July 10) at the Conference Hall of Ernakulam, Collectorate (Kakkanad) and the same will be conducted by the Senior Officers of the Labour department. It was also told that Corrohealth has been issued a notice requesting it to attend the meeting.

After hearing the parties, the Court observed:

“I am of the view that the learned Advocate General is 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 in the State of Kerala…The submission made on behalf of the petitioner that the petitioner will participate in the conciliation proceedings and will attend the meeting convened on 10-07-2026 is recorded. It is directed that the parties shall attempt conciliation in the manner contemplated by the provisions of the Industrial Relations Code, 2020.”

The Court added that the communication challenged need not be treated as a mandate and need to be viewed only as a part of the conciliation proceedings initiated by the Labour Officer.

It, thus, disposed of the petition.

Case No: WP(C) No. 23270 of 2026

Case Title: Corrohealth Infotech Private Limited v. State of Kerala

Citation: 2026 LiveLaw (Ker) 368

Counsel for the petitioner: Aamir Sohrab M.M., S. Sreekumar (Sr.)

Counsel for the respondents: K. Jaju Babu – Advocate General

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