The Silent Revolution: Labour Code Changes Transform Workers’ Lives

The Silent Revolution: Labour Code Changes Transform Workers’ Lives

Blogs
January 08, 2026

Comply Bytes • Episode 18

The Silent Revolution

What labour code changes for workers overnight

Pratik Vaidya, CVO & MD of Karma Global, in his Episode 18, speaks on how labour codes changed the life of every worker overnight. He describes it as a silent revolution that took effect on 21st November 2025, quietly reshaping the daily realities of employees and workers across India.

Episode focus

India’s labour landscape has seen its biggest structural upgrade in decades. While the reform conversation began years earlier, the change arrived meaningfully in 2025—bringing new expectations around wages, documentation, social security, workplace participation, and worker welfare.

What changed

A shift from fragmented, uneven protections to more standardized rights and entitlements across worker categories.

What it means

More clarity in employment terms, stronger wage protection, broader social security coverage, and improved dignity of work.

Why it matters

A rebalancing of workplace power through rules that are easier to understand, implement, and monitor.

Episode 18 breakdown

Life before the codes, and life after the codes

Pratik Vaidya highlights how the on-ground experience of work changes when rights and responsibilities are standardized across industries and worker categories.

Before the labour codes

Key gaps that shaped worker experience

Appointment letters were not consistently issued as a mandatory, standard practice.

Minimum wages were applied selectively, often limited to scheduled industries.

Gig workers and platform workers were not formally recognized within social security coverage.

Women faced restrictions on night shifts, and factories had limited provisions for night work by women.

Preventive health care coverage was minimal in practice.

Frequent job changes after one year commonly led to missing gratuity benefits.

Leave entitlements and leave encashment practices lacked uniformity and clarity.

After the labour codes

Standardization, security, and clearer rights

Appointment letters become a universal expectation for workers and employees.

Minimum wages are positioned as a statutory right, not a selective privilege.

Platform workers are brought into social security coverage through organizational contribution models.

Women can work night shifts with consent and safety provisions.

Annual health check-ups for workers above 40 years of age and other welfare measures become a stronger focus.

Fixed-term contracts can be structured with clearer gratuity eligibility parameters, including eligibility after one year as stated.

PF, ESIC, insurance, bonus, gratuity, and wage protection apply across categories of workers as positioned under the codes.

Leave entitlements and encashment expectations align more closely with standardized provisions.

This is not just law; it is workforce dignity, finely standardized.

The new labour codes aim to simplify compliance, balance workplace power, and bring security, equality, and clarity to Indian workers.

Prior context from May 2025

The MSME Compliance Series: “labour laws are not only for big companies”

Pratik Vaidya had earlier (13th May 2025) started the MSME Compliance Series and challenged a common misconception—that labour laws apply only to large organizations. He reiterated that basic compliance is foundational and protects both workers and businesses.

Three essential labour-law practices highlighted

Appointment letters: every employee must be issued a formal appointment letter; verbal agreements are not legally strong.

Proper records: maintain attendance, salary payment records, and working time documentation as proof of compliance.

Termination procedure: do not remove an employee without proper notice or lawful payout, as applicable.

The reminder that closes the loop

He strongly reiterated that non-compliance can lead to labour court cases, penalties, and reputational damage. The message is consistent: follow basic labour laws, build a strong foundation, and stay prepared as reforms standardize expectations.

Concluding note

Comply smartly and stay ahead—watch for continuity of the series next week.

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The Silent Revolution: Labour Code Changes Transform Workers’ Lives