Kochi | Kerala Labour Minister Bindhu Krishna on Monday said US-based health technology company CorroHealth had agreed to pay five months' gross salary as compensation to around 850 employees laid off from its Kerala offices after talks mediated by the state government.
Speaking to reporters after a meeting with the company's management here, the minister said the settlement was reached following sustained intervention by the Labour Department, employee representatives and trade unions.
Around 850 employees engaged in medical coding at the company's Kochi and Kozhikode centres recently lost their jobs.
Krishna said officials first held talks under the labour commissioner, followed by a ministerial-level meeting on July 10 after the initial discussions failed to produce a settlement.
She said the company had initially expressed its inability to accept many of the demands raised by the government and employee representatives.
"Today's discussions were very fruitful. Taking into account the concerns and best interests of the employees, we have reached a settlement," she said.
According to the minister, the company has agreed to credit the compensation to all the affected employees by July 26.
"The company has agreed to pay five months' gross salary, excluding the two months' salary announced earlier. The amount will be credited by July 26," she said.
She said the government rejected the company's proposal to relocate 12 per cent of the employees to its other centres after consulting the affected employees, who expressed concerns about job security at those locations.
The minister said the company had also agreed to issue experience certificates, relieving letters and all other employment-related documents by July 26 without any adverse remarks that could affect the employees' future job prospects.
"The company has assured that all documents required by the employees will be issued without any adverse remarks so that they do not face difficulties while seeking new employment," she said.
She added that CorroHealth had agreed to facilitate background verification for employees applying to new organisations and provide Form 16, payslips and full-and-final settlement documents.
Krishna said the agreement would be formalised through a memorandum of understanding, to be signed by representatives of the company and the employees on July 26.
She said the layoffs had caused widespread concern in Kerala, particularly among young professionals, prompting the government to intervene immediately.
"The government took a very strict stand. Labour Department officials, including the Special Secretary and Labour Commissioner, remained in constant touch with the company management, employee representatives and trade unions," she said.
Asked about the rehabilitation of the laid-off employees, the minister said the government would hold discussions with the IT department, the IT minister and CM V D Satheesan, before deciding the next course of action.
She said the affected employees had received wholehearted support from all major trade unions.
"When a social issue arises in Kerala, everyone comes together. Employee representatives, trade unions, public representatives and the government stood united to protect workers' interests. The company did not accept our demands easily. It agreed only after continuous discussions and sustained pressure," she said.