Kochi: The labour dispute at US-based healthcare solutions company CorroHealth deepened on Monday after the Kerala government urged the company to maintain the status quo, hours after hundreds of laid-off employees were denied entry into its Kochi office. The company’s legal representative said the government’s demands would be conveyed to the corporate headquarters, while a high-level conciliation meeting with the Labour Minister has been scheduled for Friday.

The standoff began on Monday morning when more than 600 employees, who were sacked, were stopped from entering the office. They reached CorroHealth’s office at Palarivattom based on Friday’s promise that status quo would be maintained till a meeting between the company management and the government. Employees alleged that the co-working facility housing the office had been instructed by the company not to allow them inside, despite an earlier understanding reached during conciliation talks.

The lockout triggered protests outside the office, with employees staging a sit-in. Members of the DYFI, INTUC, AITUC and CITU also reached the spot in support of the workers. Amid the protests, some employees were escorted into the building complex, but police prevented them from entering the office floor, citing the company’s instructions.

Following the developments, Labour Commissioner Safna Nazarudeen, Thrikkakara MLA Uma Thomas, employee representatives and CorroHealth’s legal advisor, held a conciliation meeting on the office premises.

During the meeting, the Labour Department asked the company to maintain the status quo until the dispute was resolved and allow employees to enter the office from Tuesday.

The company’s legal advisor said he was not authorised to reverse the retrenchment decision or take a final call on the government’s demands. However, he assured the officials that the outcome of Monday’s discussions and the government’s position would be communicated to CorroHealth’s management.

He also assured the authorities that employees would have access to basic facilities, including washrooms and dining areas, if they were permitted to remain inside the premises.

Officials clarified that while employees may be allowed to remain at the workplace, the company could not be compelled to assign client work if there was no immediate work available.

Labour Minister Bindu Krishna has now convened a high-level meeting on Friday, which will be attended by the Labour Secretary, senior representatives of CorroHealth, and the sacked employees.

The Labour Commissioner directed the company to keep the workplace functional and accessible until further discussions. The Commissioner said the government would await the company’s response after its legal representative briefed the headquarters before deciding on further actions.

“We have been assured that we will be allowed to sit in the office until Friday’s meeting. All of us will come to the office on Tuesday and we hope we have access,” said Vishnu, one of the sacked employees.

The latest development comes days after CorroHealth terminated nearly 800 employees, around 600 in Kochi and about 200 in Kozhikode, triggering protests. Employees have also alleged that the company later credited two to three months’ salary to the affected workers despite the matter being under conciliation before the Labour Department.

CorroHealth has reportedly defended its decision by citing provisions of the new Central Labour Code relating to fixed-term employment. However, the Kerala government maintained that the code was not yet implemented in the state and therefore could not be invoked to override existing labour protections.