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Explained: How India’s New Labour Codes Open the Door to a Four-Day Work Week

India’s Labour Ministry has clarified that while total weekly work hours remain unchanged, the new Labour Codes allow employees and employers to opt for a four-day work schedule under specific conditions 

15-12-2025
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India’s conversation around a four-day working week has resurfaced after the Union Labour Ministry clarified how the new labour framework treats work schedules. While many employees are hoping this could mean fewer working days with the same pay, the reality is more nuanced.

Under the new Labour Codes, companies are permitted to reorganise weekly schedules, but the total number of working hours in a week does not change. Employees are still required to work a maximum of 48 hours weekly. What has changed is the flexibility in how these hours can be distributed.

The Labour Ministry explained that it is legally permissible for employees to work for four days a week, provided the remaining hours are adjusted accordingly. This means an employee may work up to 12 hours a day for four days and take the remaining three days off with pay. However, this does not translate into reduced workload. Any work done beyond the prescribed daily limit must be treated as overtime and compensated at double the regular wage rate.

Importantly, the 12-hour workday does not imply continuous labour. The time frame includes rest periods, lunch breaks and intervals between shifts, depending on the nature of the job. Employers are still bound by regulations that safeguard employee health and prevent excessive strain.

The government has emphasised that this arrangement is optional, not mandatory. Organisations can choose whether to adopt a four-day schedule or continue with five- or six-day workweeks. The decision ultimately depends on company policy, state-level rules and the operational needs of specific industries. Sectors requiring continuous staffing may find it difficult to implement longer workdays.

This flexibility comes under the four Labour Codes that replaced 29 older labour laws to simplify compliance and create uniform standards nationwide. These codes govern wages, industrial relations, social security, and workplace safety and conditions. Their broader aim is to modernise labour regulations while balancing employer needs with worker protections.

Experts believe the revised structure reduces legal complexity and provides clearer guidelines for workforce planning. One significant shift is the inclusion of gig and platform workers under formal labour protections for the first time. Their benefits will be linked to Aadhaar-based accounts, allowing social security coverage to remain intact even when workers change jobs or platforms.

Fixed-term employees have also gained stronger rights. They are now entitled to the same benefits as permanent staff performing similar roles, including leave, healthcare coverage and social security. Additionally, eligibility for gratuity has been shortened to one year of service for fixed-term workers, compared to the earlier five-year requirement.

While the idea of a four-day work week has generated excitement, the government has made it clear that India is not cutting down working hours. Instead, it is offering flexibility in scheduling within existing limits. Whether this option becomes widespread will depend on how employers and employees choose to adopt it over time.

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