KOCHI: The Kerala High Court has directed US-based healthcare technology firm CorroHealth, its employees, and the state government to participate in conciliation proceedings under the Industrial Relations Code, 2020, following the company's decision to wind up its operations in Kochi and Kozhikode, which resulted in the retrenchment of around 800 employees last week.
Justice P Gopinath issued the direction while considering a petition filed by the company challenging a communication from the Ernakulam District Labour Officer asking it to maintain status quo on the proposed closure of its Kerala operations and the termination of employees.
The company submitted that the decision to cease operations in the state was taken due to circumstances beyond its control and that the statutory retrenchment compensation had already been paid to the affected employees. It also informed the court that it was willing to participate in conciliation proceedings but argued that the District Labour Officer had no authority under the Industrial Relations Code to direct it to continue employing the workers.
The State, represented by Advocate General K. Jaju Babu, argued that the government had a social obligation to facilitate conciliation in a case involving the loss of employment for a large number of workers.
Accepting the submission, the court observed that the State was justified in attempting conciliation, particularly in view of the large-scale job losses. It clarified that the communication issued by the District Labour Officer should not be construed as a binding direction but only as part of the conciliation process initiated under the Industrial Relations Code.
Recording the company's undertaking that it would participate in the conciliation proceedings and attend the meeting scheduled for July 10, the court directed all parties to make earnest efforts to resolve the dispute through the statutory conciliation mechanism provided under the Industrial Relations Code, 2020.