Opposition-ruled States insist on wider consultation on draft labour policy and codes

Issues such as the draft labour policy and the implementation of four Labour Codes came up for discussion at the two-day National Conference of Labour & Employment and Industry Ministers and Secretaries of States and the Union Territories that began in New Delhi on Tuesday (November 11, 2025).

The Union Government said the meeting was aimed at accelerating the implementation of key labour policies and initiatives, decent employment generation, and social security initiatives. Opposition-ruled States such as Kerala demanded wider consultation with the States, trade unions and other stakeholders before implementing the new draft labour policy and the four Labour Codes.

Inaugurating the event, Union Labour Minister Mansukh Mandaviya said the government has placed the citizen at the heart of every policy. Highlighting the importance of the newly launched Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY), with an outlay of nearly ₹1 lakh crore to create 3.5 crore jobs, he asked the States to align their employment programmes with this national mission for maximum synergy and impact.

Talking to The Hindu, Kerala Labour Minister V. Sivankutty said he demanded that the Centre consult all trade unions and the States on the draft labour policy. “I informed the meeting about certain reservations the State has about implementing the four Labour Codes, that subsumes existing labour laws. Wider consultations should be held with workers and their representatives before taking steps to implement the policy and the codes,” he said. Mr. Sivankutty said the presentations were mostly from the BJP-ruled States such as Gujarat. “The Centre is ignoring better labour practices in States such as Kerala where minimum wages and a decent work environment are ensured for all workers, including two million guest workers. On gig and platform work too, we have a policy, which others can adopt,” the Kerala Minister said.

Labour app

Mr. Mandaviya also launched a Digital Labour Chowk Mobile App for connecting building and construction workers with employers.

The meeting saw presentations on the proposed Labour Chowk Facilitation Centres (LCFCs), which will convert unsafe roadside gathering points of workers into structured hubs offering shelter, drinking water, sanitation, and direct access to welfare services such as registration and health camps. “Complementing this, the Digital Labour Chowk mobile application, a multilingual platform, was presented to connect workers with employers digitally for transparent and efficient job matching, reducing dependence on middlemen and unsafe waiting,” a government release said.

On the building and construction workers’ cess, the Centre proposed that it be collected online to augment welfare funds. Mr. Mandaviya launched a new portal that provides a unified digital system for automatic cess calculation, online payment, and real-time monitoring, ensuring plan approvals are linked to cess verification and accelerating the flow of funds to State Welfare Boards for workers.

Placement registry

The meeting discussed the draft Private Placement Agency (Regulation) Act, which aims to establish uniform national standards to regulate the placement ecosystem, bringing transparency and accountability to both domestic and overseas recruitment. “Its core mechanism is the registration of all private placement agencies, creating a single national registry. It also establishes a three-tier regulatory authority at the Central, State, and local levels to enforce compliance, and build a trusted, safe, and transparent placement ecosystem for every worker,” the government said.