The Kerala High Court issued a landmark ruling today, mandating US‑based CorroHealth Infotech Pvt Ltd, its workforce and the state government to engage in a conciliation process as stipulated by the Industrial Relations Code, 2020. The directive follows the company’s decision to cease operations in Kochi and Kozhikode, resulting in the retrenchment of roughly 800 employees.

Legal Framework

The Industrial Relations Code 2020 places conciliation at the forefront of dispute resolution between employers and employees. The court emphasized the state's social responsibility to facilitate such negotiations, especially when a large workforce faces potential job loss.

CorroHealth’s Position

CorroHealth contended that the shutdown was due to circumstances “beyond its control” and that severance payments had already been disbursed. It argued that the District Labour Officer’s directive to maintain the status quo should be viewed merely as a step within the conciliation procedure, not as a binding order.

Path Forward

The court scheduled a conciliation meeting for July 10, urging all parties to attend. This move not only offers a potential pathway for employee rehiring or compensation but also sets a precedent for foreign firms operating in India to adhere to local labor norms.

Political and Social Implications

Criticism of the central government’s labor codes—highlighted by Kerala Left leader V. Sivankutty’s call for an end to “hire‑and‑fire” policies—adds another layer of complexity. The ruling underscores the need for balanced labor policies at both state and central levels.