With the Congress-led UDF replacing the CPI(M)-led LDF government in Kerala, the official said the change in government could open the door somewhat as the state is “not against” the implementation of the labour codes and will open up to the benefits of the codes.

“West Bengal and Kerala are yet to notify the rules for the labour codes. But West Bengal is going to implement the codes soon. Kerala is the only major state that’s left. It has said that it will assess the same but has not opposed it. That there could be challenges at the time of implementation of the new rules has been discussed with the states. The Centre has assured the states that it will resolve all queries,” the official said.

The official pointed out that Karnataka, despite being an Opposition-ruled state, has accepted the codes and prepared the draft rules.

The Centre had notified the four labour codes — Code on Wages, 2019; Industrial Relations Code, 2020, Code on Social Security, 2020; and Occupational Safety, Health and Working Conditions (OSH) Code, 2020 — in November 2025, close to five years after getting the law passed in Parliament. In December last year, the Ministry of Labour and Employment, in a written response, had said that states/ Union Territories are still in the process of finalising the rules, adding that 34 of the 36 states and Union Territories (UTs) had finalised the rules for the Code on Wages, Code on Social Security and Industrial Relations Code.

The Mamata Banerjee-led government in West Bengal had refused to comply with the labour codes, alleging that if the law was implemented, many workers would be deprived of social  security.

Last December, Congress president Mallikarjun Kharge had also opposed the codes, saying they pose a threat to job security as the threshold for requiring prior government approval for layoffs had been raised from 100 to 300 workers, adding that companies would hire short-term workers to avoid giving benefits to long-term workers.  The Code on Wages seeks to redefine the break-up of wages to increase the share of the basic pay component — to enable higher provision for social security, especially in the service sector.The codes also aim to expand the social security provisions for gig workers.

While most states have  finalised draft rules under the labour codes, as per the government reply in Parliament, the progress varied, depending on the government in power. For instance, BJP-ruled states like Gujarat, Uttar Pradesh, Haryana and Assam finalised the draft rules in the first half of the year, but Opposition-ruled states like Tamil Nadu, Karnataka and Telangana were slower. Labour laws fall under the concurrent list of the Constitution. Hence, both the Centre and states are empowered to make rules. But in the event of a conflict between state and central laws, central legislation generally takes precedence, unless the state’s law has obtained presidential assent.  Full report on