Retrenchments in Kerala: Labour codes and its rules | Explained
A U.S. technology firm, CorroHealth Infotech, has retrenched 800 employees in Kerala, prompting a political dispute over labor laws. State officials and opposition leaders are debating whether the implementation of new Labour Codes contributed to the legality of the move.
Why it matters
It illustrates the ongoing friction between corporate operational decisions and evolving labor protection frameworks in India.
U.S. technology firm CorroHealth Infotech Private Limited retrenched about 800 employees from its Kochi and Kozhikode centres. While the company cited operational losses for the decision, both the Government of Kerala and the Opposition in the State said the move was illegal. Kerala Labour Minister Bindu Krishna said she will raise the matter with Union Labour Minister Mansukh Mandaviya on Monday (July 13, 2026).
While the Union Government is tight-lipped about the matter, senior officials have been arguing that had Kerala implemented the four Labour Codes, the workers would have received a better deal. Senior Congress MP K.C. Venugopal and former Kerala Labour Minister and CPI(M) leader V. Sivan Kutti blamed the implementation of the Labour Codes for such unilateral retrenchments.
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