India's New Labour Code Allows 4-Day Workweek, But Hours Remain Same

NEW DELHI: India's new labour code has reignited a familiar workplace question — can employees legally work just four days a week and get three days off? The short answer is yes, but it comes with a catch: total working hours stay the same, just packed into fewer, longer days. What Has Changed? Under the newly implemented labour codes — including the Code on Wages (Central) Rules and related provisions — employers can allow employees to complete their weekly work hours in four days instead of the traditional five- or six-day format. However, the total weekly working limit remains capped at 48 hours. That means an employee opting for a four-day week may have to work up to 12 hours a day, including breaks and rest periods mandated under labour laws. Is the 4-Day Workweek Mandatory? No. The rule is only an option, not a compulsory nationwide policy. Employers cannot force employees into a compressed work schedule without their consent. What Happens to Your Overtime? The labour code keeps overtime protections intact. If an employee works beyond the approved schedule or exceeds the weekly 48-hour limit, the employer must pay overtime wages at twice the normal rate. It is also worth noting that while the central rules focus mainly on weekly working-hour caps, several state Shops and Establishments laws still prescribe daily work-hour limits, usually around 8 to 10 hours. This could affect how smoothly the four-day model is implemented across different states. Which Sectors Can Benefit? Knowledge-based and flexible industries are more likely to adopt the four-day workweek. These include:

IT and IT-enabled services

Global Capability Centres (GCCs)

Marketing and design firms

Startups and support-service companies

These sectors often rely on project-based or digital work structures, making compressed schedules easier to manage. Which Industries Could Face Problems? Industries requiring continuous staffing or physical presence may struggle with the model. These include:

Hospitals and healthcare

Hospitality

Retail

Transportation and logistics

Manufacturing

India's new labour code does not officially introduce a shorter workweek. Instead, it creates legal flexibility for companies and employees to reorganise the same 48-hour workweek into four longer working days. Whether it becomes common in India will depend on industry needs, employee acceptance, and state-specific labour regulations.