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Business

4-day work week under new labour codes? Here’s what Labour Ministry clarified

MTXNewsroom
Last updated: December 15, 2025 9:05 am
By MTXNewsroom
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In a recent clarification regarding the implementation of new labour codes in India, the Ministry of Labour and Employment addressed widespread speculation about the possibility of a four-day work week. The ministry emphasized that while the new codes allow for flexibility in working hours, they do not mandate a reduction in the total number of hours worked per week. Instead, the standard work week remains at 48 hours, with provisions for overtime pay applicable for hours worked beyond this limit.

The discussion around a four-day work week gained traction following the introduction of the Code on Wages, 2019, and the Occupational Safety, Health and Working Conditions Code, 2020, which aimed to modernize India’s labour laws. Advocates for a shorter work week argue that it could enhance employee productivity, improve work-life balance, and contribute to overall job satisfaction. However, the Ministry’s recent statements clarify that the existing framework does not support a shift to a four-day work week without a corresponding adjustment in total working hours.

The Ministry’s clarification comes at a time when various sectors are exploring flexible work arrangements, particularly in the wake of the COVID-19 pandemic, which has significantly altered workplace dynamics. Many companies have adopted hybrid models, allowing employees to work from home part-time, while others have experimented with reduced hours. The idea of a four-day work week has been championed by some businesses as a means to attract talent and retain employees in a competitive job market.

According to the Ministry, the new labour codes provide employers with the flexibility to determine working hours, provided they adhere to the maximum limit of 48 hours per week. This means that companies can choose to implement a four-day work week, but they would need to ensure that employees work longer hours on those days to meet the total required hours. For instance, if an organization opts for a four-day work week, employees might be required to work 12 hours a day to fulfill the 48-hour requirement.

The implications of this clarification are significant for both employers and employees. For businesses, the flexibility in working hours could lead to innovative scheduling practices that cater to the needs of their workforce while maintaining productivity levels. However, the requirement to meet the 48-hour threshold may deter some organizations from adopting a four-day work week, as it could lead to employee burnout if not managed effectively.

For employees, the prospect of a four-day work week remains appealing, particularly for those seeking a better work-life balance. However, the Ministry’s clarification indicates that any such arrangement would require careful negotiation between employers and employees to ensure that workloads are manageable and that employees are not overburdened.

The debate over the four-day work week is not unique to India. Several countries, including New Zealand, Iceland, and Spain, have conducted trials or are considering policies aimed at reducing the standard work week. Proponents of these initiatives argue that shorter work weeks can lead to increased productivity, reduced absenteeism, and improved mental health among workers. Critics, however, caution that such changes could disrupt traditional business models and lead to increased costs for employers.

As the conversation around work hours continues to evolve, the Ministry of Labour and Employment’s clarification serves as a reminder of the complexities involved in reforming labour laws. The government’s stance reflects a cautious approach to balancing the needs of businesses with the rights of workers, ensuring that any changes to work arrangements are sustainable and beneficial for all parties involved.

In conclusion, while the idea of a four-day work week remains a topic of interest in India, the Ministry of Labour’s recent clarification underscores the importance of adhering to existing labour regulations. As businesses navigate the post-pandemic landscape, the flexibility offered by the new labour codes may provide opportunities for innovative work arrangements, but any shift towards a shorter work week will require careful consideration of the implications for both employers and employees. The ongoing dialogue around work hours will likely continue to shape the future of work in India, as stakeholders seek to find a balance that promotes productivity while prioritizing employee well-being.

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