Kerala Labour Minister V. Sivankutty reaffirmed on 26 November 2025 that the state will not implement the Centre’s four Labour Codes, notified effective 21 November 2025, despite most states advancing towards adoption.
The state had informed the Union Labour Ministry last month of its firm stance during a national meeting, rejecting any central pressure while halting progress on draft rules notified on 14 December 2021 for three years.
Trade unions, opposing the codes over fears of weakened worker protections, welcome Kerala’s position, with a central trade union meeting and a proposed labour conclave in Thiruvananthapuram in mid-December planned for consultations.
Minister’s Resolute Position
Sivankutty addressed reporters in Thiruvananthapuram, emphasising Kerala’s commitment to safeguarding workers through state-specific policies rather than rushing federal reforms.
“If we were succumbing to central government pressure, we would have given a letter accepting the codes. We have not done that,” he stated clearly, dismissing claims of secret preparations.
He noted the 2021 draft rules were developed openly, with public opinion sought, but all subsequent steps frozen, assuring no anti-worker measures would be adopted.
This stance aligns with the Left Democratic Front government’s long-standing focus on labour welfare, contrasting with other states’ compliance.
Key Features of the Labour Codes
The four codes-on wages, industrial relations, social security, and occupational safety-consolidate 29 outdated laws into a modern framework effective nationwide from 21 November 2025.
Reforms include universal social security for gig and platform workers, mandatory appointment letters for all employees, statutory minimum wages, and timely wage payments across sectors.
Fixed-term employment gains formal recognition with equal benefits, aiming to boost flexibility for businesses while enhancing worker security. However, critics argue these changes could dilute protections like job security and union rights, sparking protests.
Historical Context and State-Centre Tensions
Passed by Parliament in 2019-2020, the codes faced delays due to the Covid-19 pandemic and rule-making hurdles, with states required to align local laws.
Kerala prepared draft rules in 2021 but paused after stakeholder feedback, reflecting broader federal frictions where states seek autonomy on labour matters.
While over 20 states have notified rules, Kerala’s defiance echoes resistance in Tamil Nadu and West Bengal, highlighting India’s diverse economic needs.
Trade unions like CITU have mounted statewide defiance, viewing the codes as pro-employer.
Trade Unions’ Opposition and Upcoming Dialogue
Kerala’s robust union movement, representing millions of workers in industries, plantations, and services, fears the codes enable easier hiring-firing and reduce bargaining power.
On 26 November, unions reported growing resistance, with protests demanding code withdrawal before elections.
Sivankutty announced a meeting of central trade union representatives soon, followed by a ‘National Labour Conclave’ in the state capital’s third week of December to foster inclusive discussions.
Labour Department officials are finalising plans, aiming to incorporate worker voices into policy.
Broader Implications for Workers and Economy
Kerala’s model boasts high union density and worker-friendly laws, contributing to low industrial unrest but potentially deterring investments compared to code-adopting states.
Nationally, the codes seek to formalise 90% of India’s informal workforce, projecting GDP gains through better compliance.
Yet, uneven implementation risks legal battles and economic disparities, underscoring the need for harmonised yet flexible reforms. Gig economy growth in Kerala, from app-based deliveries to tourism, amplifies urgency for tailored social security.
The Logical Indian’s Perspective
Kerala’s bold refusal champions democratic deliberation over top-down mandates, embodying empathy for workers’ vulnerabilities in a rapidly changing economy.
True progress lies in bridging state-centre divides through transparent consultations that prioritise harmony, kindness, and coexistence among unions, businesses, and governments.
By amplifying diverse voices, India can craft labour laws that empower the marginalised and fuel inclusive growth.
