India has introduced a significant shift in its labour ecosystem with the implementation of four new Labour Codes, consolidating 29 existing central laws. Among the most discussed provisions is the flexibility offered to employers and employees to adopt a four-day work week, replacing the traditional five- or six-day schedule.
This flexibility, however, comes with specific conditions, ensuring that the total weekly working hours remain protected under the law.
The 48-Hour Rule Remains Unchanged
The key detail in the Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020, is that it retains the current maximum limit of 48 working hours per week.
To implement a four-day work week, organizations must ensure that their employees cover the total 48-hour quota in just four days. This translates to an extended daily shift of up to 12 hours per day.
The core rules governing this flexible schedule are:
- Extended Daily Hours: The daily working hour limit can be extended from 8 hours to a maximum of 12 hours.
- Mandatory Weekly Rest: The codes mandate that workers must receive three consecutive paid holidays if they opt for the 12-hour/4-day schedule, ensuring the 48-hour weekly limit is not exceeded.
- Overtime Protection: Any work done beyond the daily 12-hour limit must be compensated as overtime, paid at least at twice the normal wage rate.
Not Mandatory, But an Option
It is crucial to understand that the new Labour Codes do not mandate a four-day work week across all industries. Instead, they provide an enabling framework—an option that companies and workers can mutually agree upon and implement, subject to state government rules.
The final decision on the work schedule (whether five, six, or four days) ultimately depends on:
- The nature of the work and the sector's requirements.
- The employer’s policy and willingness to adopt flexibility.
- The final rules and regulations framed by the respective State Governments.
Implementation Status: What Companies Must Note
The four new Labour Codes—the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020—have been enacted by the Central Government.
However, since Labour falls under the Concurrent List of the Constitution, both the Centre and the States must frame rules for effective implementation. As of late 2025, while the Codes have largely come into force, most States are still in the process of finalizing their respective rules. This means that while the provision for the four-day week exists on paper, its widespread adoption depends on the timely notification of state-level rules.
Broader Reforms in the Codes
Beyond the flexible work week, the new codes introduce several other transformative reforms:
- Universal Social Security: Extends coverage to gig workers and platform workers for the first time.
- Revised Wage Definition: A standardized definition of 'wages' impacts PF, gratuity, and leave encashment calculations.
- Gratuity for Fixed-Term Workers: Fixed-term employees are now eligible for gratuity after just one year of service.
- Timely Wages: Mandatory payment of wages within two working days of termination (resignation, dismissal, or retrenchment).
The flexibility for a four-day work week marks a significant move toward aligning India’s labour laws with global trends, aiming to balance worker welfare with operational efficiency for businesses.
