The US-based medical coding company that laid off nearly 900 employees from its Kochi office on Friday has reportedly gone back on its assurance to maintain status quo on the dismissals. Instead, the company has credited three months’ salary to the accounts of the affected employees as part of a severance package.Company representatives had on Friday agreed to participate in a conciliatory meeting to be chaired by the Labour Secretary on Monday, following the intervention of Uma Thomas MLA after protest by employees on sudden layoffs.The US company, which provides healthcare analytics and technology-driven solutions to hospitals and healthcare systems, had informed employees at its Kochi centre that the layoffs were part of a restructuring exercise.The decision to disburse the severance package has fuelled concerns that the company intends to shut down its Kerala operations despite the state government’s request to safeguard jobs until discussions are held.It is not clear whether the company officials will be participating in the conciliatory talks called by the Labour Secretary on Monday.Employees alleged that the company was attempting to act on the basis of the proposed new Labour Codes and had decided to discontinue operations in Kerala after realizing that labour law violations would not be tolerated in the state.Bindu Krishna, the State Labour Minister, however, clarified that the new Labour Codes have not yet been implemented in Kerala, as the State is still in the process of framing rules under the central legislation. She said the company cannot invoke the proposed codes to bypass existing labour protections or ignore the understanding reached during Friday’s mediation.The Minister also criticised the company’s decision to credit the severance package despite its earlier assurance. The State Government would intervene, within the limits of its powers, to protect the interests of the affected employees, she said.Expressing concern over the mass layoff, a veteran trade union leader said the incident exposed what he described as unhealthy provisions in the new Labour Code, which he alleged gives employers greater leverage to resort to contract employment and large-scale retrenchment. He warned that the trend signals a dangerous situation for the country’s workforce, particularly in the absence of strong trade union intervention.Published on July 5, 2026