Kerala has reiterated its strong opposition to the Centre’s newly implemented labour reforms, with Labour Minister V. Sivankutty confirming that the state will not enforce the four new Labour Codes notified by the Union government on November 21, 2025. The move, which consolidates 29 existing labour laws into a unified framework, was projected as one of the most significant labour reforms in independent India. However, Kerala’s refusal underscores deepening federal tensions and highlights the state’s long-standing worker-centric policy approach.
Overview of the New Labour Codes
The four Labour Codes introduced by the Centre are:
- Code on Wages (2019)
- Industrial Relations Code (2020)
- Code on Social Security (2020)
- Occupational Safety, Health and Working Conditions Code (2020)
These codes aim to simplify compliance, standardize wage norms, expand social security coverage, regulate working conditions, and redefine employer–employee relations. They also cover gig and platform workers, mandate appointment letters for all employees, and ensure timely wage payments under a uniform framework.
Kerala’s Stand: “No Anti-Worker Policies”
Speaking to the media, Minister Sivankutty clarified that Kerala had clearly communicated its stance during a meeting convened by the Union Labour Ministry. Despite preparing draft rules in 2021, the state government halted further steps and has not taken any action toward implementation for the past three years.
The minister emphasized that Kerala would not adopt any policy perceived as “anti-worker” or detrimental to existing labour protections. He dismissed claims that earlier draft rules were framed under central pressure, reiterating that the state’s approach is rooted in safeguarding robust social security systems, union rights, and labour welfare.
Reasons Behind Kerala’s Opposition
Key concerns raised by the state include:
- Potential dilution of worker protections: Kerala argues the new codes could weaken union rights and reduce existing safeguards.
- Risk of favouring employers over workers: State officials believe the codes prioritise ease of doing business over the welfare of labourers.
- Preservation of Kerala’s progressive labour model: The state has historically maintained stronger labour standards than many parts of India.
- Need for wider consultation: Kerala contends that the reforms were executed without adequate involvement of states and worker groups.
National Implications: A Fragmented Implementation Landscape
While the Union government has formally implemented the new labour framework, effective enforcement still depends on states issuing their own rules. Kerala’s outright refusal could create uneven labour standards across India, complicating compliance for companies operating in multiple states.
Such divergence may result in:
- Regulatory inconsistencies
- Legal ambiguities for interstate labour practices
- Uneven social security benefits
- Operational challenges for businesses and industries
The situation reflects a broader challenge: balancing national labour reform with state autonomy.
