The Congress on Monday launched a sharp attack on the Centre over the reported termination of hundreds of employees at healthcare technology company CorroHealth in Kerala, alleging that the government’s new Labour Codes have weakened workers’ rights and made large-scale layoffs easier.
Congress general secretary K C Venugopal, in a post on social media platform X, described the reported dismissal of around 800-900 employees at CorroHealth as a “warning sign” for India’s working class and accused the Narendra Modi government of framing labour laws that favour large corporations over employees.
“The shocking mass firing on 800-900 employees at CorroHealth in Kerala is a warning sign for India’s labour classes. It’s clear that the new Labour Codes are the black laws that will send millions of lamb to slaughter,” Venugopal said.
Referring to the reported layoffs, he alleged that the employees were handed “Full and Final Termination Letters” without adequate compensation.
“In this case, an entire workforce was handed Full and Final Termination Letters one fine morning and fired with unfair compensation,” he said.
Venugopal argued that the Industrial Relations (IR) Code narrows the definition of a “worker” by restricting it to those earning below Rs 18,000 a month, thereby excluding a large section of IT professionals from statutory protections.
“The IR Code has defined a ‘worker’ as anyone earning below Rs 18,000 — essentially ruling out most IT workers like those fired at CorroHealth,” he said.
He further alleged that the Labour Codes legitimise fixed-term employment, making it easier for companies to replace permanent jobs with temporary contracts.
“Not only that, it legalises the concept of a ‘fixed-term contract’ to pave the way for conversion of permanent employees into unstable hire-or-fire temporary workers,” the Congress leader said.
Accusing the Centre of prioritising corporate interests, Venugopal said, “The tragic reality is that the Modi Government has designed these Labour Codes for the ease of corporate bigwigs, and trample upon the rights of the hardworking labourers who give their sweat and blood to build our country.”
Calling for a review of the legislation, he urged the government to reconsider the laws through Parliament.
“These laws must be sent back for Parliamentary scrutiny to restore the balance in favour of the workers, not big business,” he said.
The four Labour Codes—covering wages, industrial relations, social security and occupational safety—were passed by Parliament in 2019 and 2020 with the stated objective of consolidating and simplifying India’s labour laws.
While the Centre has maintained that the reforms will improve ease of doing business, attract investment and expand social security coverage, several trade unions and opposition parties have consistently opposed the Codes, alleging that they dilute labour protections, make hiring and retrenchment easier for employers, and weaken collective bargaining rights.
The reported layoffs at CorroHealth have sparked political debate in Kerala, with opposition parties and labour organisations demanding greater protection for employees and clarity over the circumstances surrounding the terminations. The company has not publicly responded to Venugopal’s allegations.