Kochi Medical Coding Firm Lays Off 900 Without Notice

A US-based medical coding company shut its Kochi and Kozhikode offices on Friday, firing nearly 900 employees with no advance warning. Workers said they were handed termination letters when they reported for duty. Company officials told them to surrender identity cards, collect relieving letters, and leave immediately.

Employees rejected the management's offer of three months' salary as compensation. They demanded at least 10 months' pay to cushion the sudden job loss. Protests broke out at the Kochi office. The state government stepped in.

The company blamed financial stress for the shutdown. Workers disputed that. They said the firm is still hiring staff at its Hyderabad center. That contradiction is central to the dispute, two employees told local media.

Uma Thomas, the local member of the legislative assembly, said she spoke with company representatives Friday. She said the officials agreed to follow the labour officer's directions on compensation. Her priority, she said, was to keep employees on the payroll.

After the discussions, the management temporarily suspended the terminations. Employees returned to work Saturday. Their salaries and benefits remain intact while both sides negotiate a longer-term solution.

A final decision on closing the Kerala offices will wait for more talks. The state labour secretary arrives in Kochi on July 6 to lead the next round.