Kozhikode, July 16 — In a dramatic turn of events, CorroHealth announced the dismissal of roughly 800 employees, sparking a large‑scale protest organized by the Hind Mazdoor Sabha (HMS). State Secretary Biju Antony called the mass layoff "illegal" and accused the firm of flouting the Kerala state government's directives.

Protest Demands and Rhetoric

At the company’s Kozhikode office, HMS activists, led by Antony, demanded a complete repeal of the “hire‑and‑fire” clause that they argue is embedded in the central government’s newly introduced labour codes. Antony appealed directly to Industries Minister P.K. Kunhalikutty, urging him to step in, reinstate the dismissed workers, and ensure robust protection against arbitrary termination.

Background: CorroHealth and the New Labour Code

CorroHealth, a prominent player in the health‑services sector, has been undergoing a cost‑cutting restructuring drive over recent months. The recently rolled‑out national labour code grants corporations greater flexibility to hire and fire, a provision many trade unions view as a direct threat to job security. In this light, the layoffs are seen not merely as a business decision but as a litmus test for the implementation of the new code.

State Response and Potential Ramifications

The Kerala government has yet to issue an official statement, but the state’s Industries Department has indicated that it will investigate the matter. Should the dismissed workers not be reinstated, the episode could fuel further labour unrest and potentially tarnish the state’s reputation as a business‑friendly destination.

Expert Opinions

Labour law scholars contend that mass dismissals without proper cause or due process are vulnerable to challenges in Indian labour courts. They also stress that while the new code aims to enhance corporate agility, it must be balanced with a genuine commitment to employee welfare and re‑employment pathways.