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Labour codes - logistics cost impact
What it is
The four labour codes effective 21 Nov 2025 apply with unusual force to logistics, which is labour-intensive, contract-staffed and heavily reliant on gig and platform workers
The uniform wage definition resets PF and gratuity, and gig workers gain social security entitlements for the first time
Impact on industries
- Directly raises cost in a business where manpower is the largest controllable line and margins are already thin
- Gig and platform worker entitlements hit last-mile delivery models built on flexible, low-cost rider networks
- Fixed-term staff qualify for pro-rata gratuity after one year rather than five, removing much of the advantage of contract staffing
- Formalisation favours organised operators who already comply, widening their cost gap against informal fleet operators only in relative terms
- Better worker terms should reduce attrition in an industry where driver and rider turnover is a chronic operational problem