A recent statement by L&T Chairman SN Subrahmanyan stirred online debates and garnered reactions from employees, celebrities, and CEOs across corporate India. Subrahmanyan suggested that Indians could work 90 hours a week and expressed regret for not being able to make employees work on Sundays. He added, “If I can make you work on Sundays, I will be happier because I also work on Sundays.” This controversy makes us think about the Indian Labour Laws and the protection they offer to employees in India.
But is the Indian workforce truly underperforming? The answer is no. In fact, Indian employees are overworked. According to data from the International Labour Organisation, 50.5% of workers in India put in 49 or more hours per week. In addition, 88% of Indian employees report being contacted by their employers outside of work hours. Shockingly, 85% of these employees continue to receive work-related messages/emails during sick leave or public holidays.
What does this culture of overwork in India say about the country’s labour laws? It raises important questions about whether Indian labour laws are doing enough to protect workers’ rights in today’s demanding work culture.
Understanding working hours under Indian Labour Laws
Every now and then, we hear leaders proposing 70 or 90-hour workweeks. But what do Indian labour laws actually say about working hours and overtime? Whether you’re at a corporate giant like Infosys or part of a budding startup, it’s important to know what the law says about working hours and your rights.
Working hours provisions, Under the Factories Act, 1948
The Factories Act 1948 establishes safety standards for workers in factories involved in manufacturing activities like weaving cloth, knitting hosiery, producing clothing and footwear, dyeing and finishing textiles, and similar industries. It also regulates the working hours for all factory workers to ensure fair and safe labour conditions under the following sections:
Section 51: Weekly hours
This section sets the maximum weekly working hours at 48. No worker should be asked or required to work beyond this limit.
Section 53: Compensatory holidays
If a worker’s holiday is cancelled for any reason, the factory must provide an equivalent number of compensatory holidays within two months of the missed holiday.
Section 54: Daily hours
In line with the weekly limit under Section 51, this provision restricts the daily working hours to a maximum of 9 hours. No worker can be made to work beyond this limit on a single day.
Section 55: Rest intervals
Employees must get a break of at least 30 minutes after 5 hours of continuous work. In exceptional cases, the state government may extend the limit to 6 hours.
Section 56: Spread over
This section accounts for the total working hours, including rest intervals. It states that the combined duration of work and rest for a worker cannot exceed 10.5 hours in a single day.
Section 59: Overtime and extra wages
Workers who exceed the daily or weekly limits, 9 hours a day or 48 hours a week, are entitled to overtime pay at twice their ordinary wage rate. The “ordinary wage rate” includes the basic salary and allowances but excludes bonuses and other perks. Factories must maintain proper records of overtime hours and payments made.
Section 60: Double employment
No worker is allowed to work for more than one factory on the same day. If an individual works at one factory, they cannot take up work in another during that day.
To learn more about how the Factories Act safeguards workers’ health, safety, and overall welfare, check out our previous article here.
The Shops and Establishments Act
Similar to the Factories Act, the Shops and Establishments Act limits the workweek to 48 hours or 9 hours per day. However, the Act’s application varies by state. For example, in Maharashtra, an employee cannot be asked to work beyond 9 hours a day or 48 hours a week. In Telangana, the limit is 8 hours per day with a 48-hour weekly cap. In Delhi, Section 8 of the Delhi Shops and Establishment Act specifies that no employee should work more than 9 hours a day or exceed a total of 48 hours in a week.
The Shops and Establishments Act applies to most businesses, covering a wide range of establishments, including:
- Retail establishments like stores, malls, and warehouses
- Eateries, hotels, movie multiplexes, and amusement parks
- Service organisations like finance, healthcare, pharma, and hospitality
- IT companies
New Labour Codes
In 2020, the Indian Parliament introduced four new labour codes as a step toward long-overdue reform in Indian labour laws. One of the key changes proposed by the new regulations is increased flexibility for employers. The codes allow employees to work longer hours in a day. It can be up to 12 hours in exchange for a four-day workweek. However, this arrangement still keeps the total working hours under the legal maximum of 48 hours per week.
A growing number of global cities are experimenting with more flexible working models. Starting in April 2025, Tokyo will implement a four-day workweek. While the new Labour Codes attempt to bring India’s labour laws up to global standards, their implementation has been delayed.
Is the Indian Labour Law doing enough for today’s workforce?
Indian labour laws often fail to address the needs of managerial and supervisory roles. That is creating a significant gap in legal protections for white-collar employees. This exclusion places many senior-level employees in a legal grey area where their work hours and overtime compensation are determined solely by company policies rather than any legal framework.
For example, the Shops and Establishments Act, a key regulation governing work hours and conditions, does not uniformly apply to all categories of employees. In Maharashtra, this Act excludes employees in managerial, supervisory, or confidential roles. Similarly, in Telangana, it does not apply to managerial employees earning monthly wages exceeding INR 1,600.
These exceptions leave a large segment of the workforce without legal protection. It exposes them to potential exploitation through excessive work hours or lack of overtime pay.
The absence of legal safeguards for white-collar employees often means that their working conditions depend on the employer’s discretion. While some organisations may implement fair policies, others might demand longer hours without additional compensation or adequate rest periods. This disparity creates inconsistent work environments across industries, as there is no uniform standard for managing work hours and employee rights for those in supervisory or managerial positions.
Working women are among the most affected by the gaps in labour protections. In South Asia, India ranks fifth in terms of gender parity in estimated earned income, with less than 30% parity. That makes India one of the worst-performing economies for gender equality. A significant reason for the continued marginalisation of women at work is their limited awareness as well as poor implementation of legal protections.
The final thoughts: The need for fair compensation and updated labour laws
It seems that employers worry more about what employees do on Sundays than about ensuring fair compensation for extra work during the week. Instead of wondering, “What are you doing on your day off?” Maybe it’s time to ask, “Did we fairly compensate you for the extra time you worked last week?” Employers must ensure that employees get fair compensation for the extra hours they work.
However, the responsibility does not fall solely on companies. The government needs to take a more active role in updating labour laws. Current regulations often leave gaps, particularly for employees in managerial or supervisory positions, who are not always covered by existing laws. Government and policymakers must revise the laws to include these workers and establish clear guidelines for work hours and overtime pay.
Disclaimer: The views expressed in this article are based on the writer’s insights, supported by data and resources available both online and offline, as applicable. Changeincontent.com is committed to promoting inclusivity across all forms of content. We broadly define inclusivity as media, policies, law, and history—encompassing all elements that influence the lives of women and gender-queer individuals. Our goal is to promote understanding and advocate for comprehensive inclusivity.
