Sunday, December 8, 2024

Working Hours in India: Key Laws Every Employee Must Know

Following the tragic death of EY employee Anna Perayil calls for stronger employee well-being laws in India are growing, with many advocating for a “Right to Disconnect” law.

This legal framework, originating in France and recently regulated in Australia, aims to protect employees from being constantly connected to work after hours. The law is designed to ensure work-life balance and prevent burnout by allowing employees to disconnect from work communications outside of working hours. Read More About “Right To Disconnect”

It is also important to understand India’s existing work-hour laws, which govern labor conditions, rest periods, and employee rights, but lack specific provisions for digital disconnection.

Watch on YouTube, Do We Need New Employee Wellbeing Law in India?

Current Work Hours Laws In India

In India, working hours for employees in factories and corporate offices are governed by various laws, with distinct regulations based on the sector and location.

These laws aim to ensure that employees are protected from excessive work hours, while also providing exemptions (either limited or absolute) to certain sectors.

Below is a detailed overview of the current laws regarding working hours in factories and corporate offices in India.

1. Factories Act, 1948 (Applicable to Manufacturing Units and Factories)

The Factories Act, 1948 regulates working hours for employees in factories to ensure their health and well-being.

  • Maximum Working Hours: Under this law, the maximum working hours for adult workers are capped at 48 hours per week and 9 hours per day.
  • Overtime: If a worker exceeds 9 hours in a day or 48 hours in a week, they are entitled to overtime pay, which must be twice their regular wages.
  • Weekly Rest Day: Workers are entitled to one day of rest per week, which should last for at least 24 continuous hours. This is generally observed on Sunday, although other days may be assigned depending on the employer’s discretion and after issuing notice of substituted holiday to the concerned authority.
  • Daily Rest Period: After working for 5 continuous hours, workers must be provided with a break of at least 30 minutes.
  • Spread Over: The total working hours in a day, including breaks, should not exceed 10.5 hours.

2. Shops and Establishments Act (For Corporate Offices and Non-Factory Workplaces)

The Shops and Establishments Act governs the working hours and conditions of employment in offices and other non-factory workplaces. Each state in India has its own version of this law, which means specific provisions may vary. However, the general framework remains similar across most states.

  • Maximum Working Hours: Typically, the maximum working hours for employees are set at 9 hours per day and 48 hours per week.
  • Overtime: Employees who work beyond the stipulated daily or weekly hours are entitled to overtime pay, generally at double their regular wage.
  • Weekly Rest Day: Employees are entitled to a weekly rest day, usually on Sunday, though other days can be designated as the rest day depending on the state.
  • Rest Breaks: A minimum break of 30 minutes must be given after 5 hours of work, although the specifics can vary by state.
  • Spread Over: The total time an employee spends at work, including rest intervals, should not exceed 10-12 hours a day depending on the state.

3. Code on Wages, 2019

The Code on Wages, 2019 is part of India’s recent labor reforms. Though it does not directly regulate working hours, it seeks to create uniformity in wage-related matters, including overtime payments.

That said, as the State-specific Shops and Establishments Acts will not be subsumed into the new labour codes, there may still remain inconsistencies in respect of payment requirements in respect of corporate offices.

4. Occupational Safety, Health and Working Conditions Code, 2020

Expected to replace multiple existing labor laws, including the Factories Act, this code will apply to a broader range of industries. It will maintain similar provisions for maximum working hours and overtime as the Factories Act.

Additionally, it is likely to introduce greater flexibility in determining working hours for sectors like IT and corporate offices, subject to rules prescribed by the states. However, inconsistencies with State-specific Shops and Establishments Acts that may subsist post-implementation of the new labour codes should be removed or clarified by the government.

Key Points for Corporate Offices

Corporate offices, especially those governed by the Shops and Establishments Act, often have more flexibility in terms of work hours.

  • There is no legal restriction to follow a 5-day workweek by IT companies and corporate offices, provided that such establishments adhere to daily and weekly restrictions on the hours of work.
  • Flexibility in working hours, including staggered shifts, is permissible as long as the maximum daily and weekly work hours are adhered to.
  • Working during the night (10 PM to 6 AM) for women is generally restricted unless the employer has special permission and adequate safety measures in place. The restricted hours vary from state to state.
  • Some states have also permitted establishments to remain operational throughout the week by engaging additional staff and without compromising with the existing regulations.

These laws ensure employees are protected from overwork while enabling certain sectors to offer flexibility in work schedules.

Conclusion

Laws exist, but the will to enforce them is lacking. Employers often neglect employee well-being, despite existing regulations. Employees fearing job loss, rarely speak up about excessive work hours or burnout.

Without genuine implementation, the digital tether to work continues unchecked, leaving workers vulnerable to overwork and mental health struggles. The gap between policy and practice remains unaddressed.


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Romesh Srivastava
Romesh Srivastava
Editor In Chief, SightsIn Plus. He has 20 years of experience in Human Resources working with corporates and the HR consulting industry.