Kerala won't implement Centre's labour codes; Why the state is opposing the new laws

Kerala won't implement Centre's labour codes; Why the state is opposing the new laws

Kerala had already conveyed its stand to the Union Labour Ministry

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Kerala refuses Centre’s labour codesKerala refuses Centre’s labour codes
Business Today Desk
  • Nov 27, 2025,
  • Updated Nov 27, 2025 3:18 PM IST

Kerala Labour Minister V Sivankutty has said the state will not implement the Centre's labour codes, making it clear that the state will continue to hold its position despite most states moving ahead with the new framework. 

Speaking to reporters, Sivankutty said Kerala had already conveyed its stand to the Union Labour Ministry. "The majority of the states have taken steps to implement the labour codes, but not Kerala."

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He said the Centre had called a meeting of states last month, and "there, Kerala had clearly indicated its stand that it would not implement the labour codes."

When asked whether the state had given in to pressure by preparing draft regulations linked to the codes, the minister strongly denied it. "If we were succumbing to central government pressure, we would have given a letter accepting the codes. We have not done that."

He said the draft regulation issued in 2021 did not mean Kerala had shifted its position. “It was done openly and I recommended in the file that public opinion be sought regarding it. All further procedures in connection with it have been stopped. We have not taken any steps regarding it in the last three years. So, there is no need to be concerned.”

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Sivankutty said the government would not take an anti-worker stand while the codes were being discussed. He also announced a meeting with central trade union representatives and said a labour conclave in Thiruvananthapuram is under consideration for the third week of December.

The central government last week notified all four labour codes — pending since 2020 — bringing in changes such as universal social security for gig workers, mandatory appointment letters for all employees, statutory minimum wages, and uniform wage-payment rules across sectors. The codes also allow longer work hours, broader fixed-term employment and eased rules for retrenchment.

CPI(M)'s objection to labour codes 

The CPI(M), which leads the state government, had opposed the codes on Saturday, calling them an attempt to roll back long-standing worker protections. It said the four codes "seek to dilute and abolish long-established rights and entitlements of workers, and shift the balance sharply in favour of employers."

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The Left party argued the new framework dismantles 29 labour laws that have protected workers for decades. "Despite many limitations, to an extent, the wages, working hours, social security, industrial safety, inspection, compliance mechanisms, and collective bargaining were in place."

It said the Centre's move "seek to dilute and abolish long-established existing rights and entitlements and shift the balance sharply in favour of employers."

Rejecting the government’s claim that the codes will boost employment, CPI(M) said: "The codes are designed to leave labour unprotected in the face of the onslaught of capital. Their aim is to lure national and international capital by ensuring that all meaningful regulations covering various aspects of labour rights will be nullified."

The party also said the codes restrict worker action and weaken collective bargaining. "The labour codes seek to snatch away the right to strike and criminalise any collective action by the working class." It described the shift as "a jungle raj by unilaterally empowering the corporate class to bulldoze the rights and entitlements of workers with proactive sponsorship of the government and administration."

The CPI(M) said the Centre pushed the legislation without genuine consultation. "The government sidelined trade unions throughout the process and rushed the legislation through Parliament without debate. Rather, the government arrogantly rejected the valid objections to the labour codes that were based on irrefutable arguments and concrete documentary evidence."

Kerala Labour Minister V Sivankutty has said the state will not implement the Centre's labour codes, making it clear that the state will continue to hold its position despite most states moving ahead with the new framework. 

Speaking to reporters, Sivankutty said Kerala had already conveyed its stand to the Union Labour Ministry. "The majority of the states have taken steps to implement the labour codes, but not Kerala."

Advertisement

He said the Centre had called a meeting of states last month, and "there, Kerala had clearly indicated its stand that it would not implement the labour codes."

When asked whether the state had given in to pressure by preparing draft regulations linked to the codes, the minister strongly denied it. "If we were succumbing to central government pressure, we would have given a letter accepting the codes. We have not done that."

He said the draft regulation issued in 2021 did not mean Kerala had shifted its position. “It was done openly and I recommended in the file that public opinion be sought regarding it. All further procedures in connection with it have been stopped. We have not taken any steps regarding it in the last three years. So, there is no need to be concerned.”

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Sivankutty said the government would not take an anti-worker stand while the codes were being discussed. He also announced a meeting with central trade union representatives and said a labour conclave in Thiruvananthapuram is under consideration for the third week of December.

The central government last week notified all four labour codes — pending since 2020 — bringing in changes such as universal social security for gig workers, mandatory appointment letters for all employees, statutory minimum wages, and uniform wage-payment rules across sectors. The codes also allow longer work hours, broader fixed-term employment and eased rules for retrenchment.

CPI(M)'s objection to labour codes 

The CPI(M), which leads the state government, had opposed the codes on Saturday, calling them an attempt to roll back long-standing worker protections. It said the four codes "seek to dilute and abolish long-established rights and entitlements of workers, and shift the balance sharply in favour of employers."

Advertisement

The Left party argued the new framework dismantles 29 labour laws that have protected workers for decades. "Despite many limitations, to an extent, the wages, working hours, social security, industrial safety, inspection, compliance mechanisms, and collective bargaining were in place."

It said the Centre's move "seek to dilute and abolish long-established existing rights and entitlements and shift the balance sharply in favour of employers."

Rejecting the government’s claim that the codes will boost employment, CPI(M) said: "The codes are designed to leave labour unprotected in the face of the onslaught of capital. Their aim is to lure national and international capital by ensuring that all meaningful regulations covering various aspects of labour rights will be nullified."

The party also said the codes restrict worker action and weaken collective bargaining. "The labour codes seek to snatch away the right to strike and criminalise any collective action by the working class." It described the shift as "a jungle raj by unilaterally empowering the corporate class to bulldoze the rights and entitlements of workers with proactive sponsorship of the government and administration."

The CPI(M) said the Centre pushed the legislation without genuine consultation. "The government sidelined trade unions throughout the process and rushed the legislation through Parliament without debate. Rather, the government arrogantly rejected the valid objections to the labour codes that were based on irrefutable arguments and concrete documentary evidence."

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