The court says “the 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 Kerala.”
| Photo Credit: R K Nithin
The Kerala High Court has directed US-based firm CorroHealth Infotech Pvt Ltd, its employees and the State government to attempt conciliation and to resolve disputes as contemplated under the Industrial Relations Code, 2020 in the wake of the firm’s decision to shut down its operations in Kochi and Kozhikode, and the subsequent retrenchment of around 800 employees of the firm a week ago.
This was after the firm approached the court, challenging a communication issued by the District Labour Officer of Ernakulam, directing it to maintain status quo on the matter of closing down its operations in the State and to ‘discharge’ its employees. The firm defended its decision to shut down its operations, attributing it to reasons “beyond its control.” It added that the retrenchment compensation was already transferred to the employees.
Stating that it was willing to cooperate with the conciliation proceedings, it contended that the labour officer could attempt a conciliation of the dispute, and that he had no authority under the Code to direct it to permit the employees to continue in service.
It added that the labour officer’s communication need not be treated as a mandate in any manner, and need only be seen as a part of the conciliation proceedings initiated by him.
While taking note of the firm’s submission that it will participate in the conciliation proceedings and would attend the meeting convened on July 10, the court directed that the parties “shall attempt conciliation in the manner contemplated by the provisions of the Industrial Relations Code, 2020.”
Published – July 09, 2026 03:03 pm IST
