KOCHI: The High Court has directed US-based healthcare technology firm CorroHealth, its employees and the 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 directive 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 Kerala operations and termination of workers.
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 those affected. 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 counsel 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.