The Kerala government has decided to hold broader consultations with trade unions before finalising state rules for implementing the central Labour Codes, setting up a special committee tasked with submitting its recommendations within 10 days. The decision was taken at a high-level meeting held on Thursday, 22 October 2026, at the Secretariat in Thiruvananthapuram, chaired by Chief Minister V.D. Satheesan.

Key Decisions from the Meeting

The meeting, attended by Labour Minister Bindu Krishna and 22 trade union office-bearers, agreed to constitute a special committee convened by the Labour Department Secretary, with the Law Department's Additional Secretary as a member. The panel will include seven representatives from various trade unions alongside Labour Department officials.

Significantly, trade unions not represented on the committee will also be permitted to attend its sittings and present their views — a measure aimed at ensuring inclusivity in the drafting process. The committee's draft recommendations will be circulated to all unions before any final decision is taken.

What the Government Has Committed To

Chief Minister Satheesan made clear that the government would take a final call on implementation only after hearing all stakeholders and examining legally permissible options. He assured trade union representatives that the state was committed to protecting workers' rights and interests, and would seek to minimise any adverse impact of the Labour Codes within the applicable legal framework.

Notably, Satheesan expressed hope that the rules framed by Kerala would serve as a model for other states — signalling the government's intent to position the state as a benchmark on labour welfare.

The Centre and the Threshold Issue

One of the most contentious matters flagged at the meeting concerns the threshold prescribed for the applicability of Labour Code provisions. Kerala has decided to take up the issue with the Central government and urge it to lower this threshold — a move that could extend protections to a larger share of the workforce.

This comes amid longstanding concerns from trade unions across India that the four Labour Codes, enacted by the Centre, dilute existing worker protections and reduce the bargaining power of organised labour. Kerala's approach — seeking state-level rule modifications where legally permitted — reflects a broader pattern of states attempting to cushion the impact of the new framework.

Process and Timeline

The government will also give trade unions an opportunity to suggest amendments to a draft prepared in 2021 before rules are finalised. The final state rules will be drawn up after considering both the special committee's report and recommendations from trade unions at large.

The 10-day deadline sets a tight window for committee deliberations, though the government's own final decision on implementation is expected to follow the full consultation cycle. All participating trade unions reportedly found common ground on the need to safeguard workers' interests — a rare show of consensus in Kerala's typically fractious union landscape.

How the state navigates the legal constraints of the central Labour Codes while protecting its workforce will closely watched by both unions and other state governments in the weeks ahead.