Kochi: A day after the mass layoffs at US-based healthcare solutions company CorroHealth's Kerala offices triggered protests, the company has come under fresh fire after it allegedly credited three months’ salary to nearly 800 terminated employees, despite an understanding reached during conciliation talks to maintain the status quo until Monday.

Employees alleged that the company unilaterally transferred the settlement amount to the bank accounts of the affected staff around 11 pm on Friday, even though discussions held earlier in the day with Thrikkakara MLA Uma Thomas, the District Labour Officer and company representatives had concluded with an understanding that no further retrenchment-related action would be taken until a meeting convened by the Labour Department Secretary on July 6.

The overnight transfer has angered employees, who claim the company is attempting to complete the termination process before the government-mediated talks.

Vishnu, a staff who was among those laid off, alleged that the company's action violated the consensus reached during Friday's discussions.

“What they have done now is a total breach of our understanding. By around 11 pm last night, they credited everyone's accounts with the amount they had specified. When you consider that this was done for so many people, they might have processed at least ₹12 crore overnight. If they are capable of transferring such massive sums within a single night, what financial ‘loss’ are they actually suffering? This overnight execution clearly exposes their true face, and the termination is pre-planned,” he said.

Employees further alleged that while they were asked to return to the office on Monday and their physical identity cards were not taken back, the company had already disabled their access to all internal systems.

“The laptops are still at the office, but they are useless to us because our access has been entirely revoked. Previously, our individual names would appear when we logged in, but now our screens simply display ‘User Zero – Not Available,' another employee said.

The company reportedly justified the terminations by citing provisions of the new Central Labour Code, including those on fixed-term employment, arguing that the layoffs and the three-month compensation package are legally permissible under the proposed framework.

However, the state government has rejected this argument, pointing out that the new Labour Code has not yet been implemented in Kerala. Labour Minister Bindu Krishna said Kerala is still in the process of finalising the rules under the central legislation, and the company cannot invoke the proposed code to bypass existing labour protections or disregard the understanding reached during the Labour Department's mediation.

“We have a strong concern regarding the company’s sudden stance since the money was credited to the accounts last night. During the direct discussions between the MLA and the District Labour Officer yesterday, it was made clear that the procedures were temporarily frozen until the Labour Secretary reviews the case on Monday. Initiating an action that directly violates that collective assurance is highly objectionable,” the minister said.

She said the government would intervene to protect employees' interests.

“The government has limitations, but we will absolutely intervene in this matter to the highest extent of its legal jurisdiction to safeguard the rights of the workers,” the minister added.

The development comes a day after CorroHealth terminated nearly 800 employees, around 600 from its Kochi office and about 200 from Kozhikode, triggering large-scale protests. Employees had alleged they were informed of the layoffs without prior notice and accused the company of violating labour laws and targeting its Kerala operations.

The Labour Department is scheduled to hold a high-level meeting on Monday, chaired by the Labour Secretary, with the company's senior management expected to attend.

Employees have reiterated their request that the layoffs be withdrawn and all affected staff be reinstated. They have also expressed willingness to discuss salary restructuring if it helps preserve their jobs. If the retrenchment cannot be reversed, they are demanding compensation equivalent to 10 months’ salary to help them secure alternative employment.

Meanwhile, CorroHealth has not responded publicly to the layoffs. Though Onmanorama contacted top officials in Kerala, they were not available for comments.