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Is 4-day work week allowed after New Labour codes roll out? Here's what new work rules say about the work timings
ET Online | May 20, 2026 9:19 PM CST

Synopsis

India's new labour codes permit a four-day workweek, allowing employees to complete 48 weekly hours over fewer days. This compressed schedule, requiring up to 12-hour workdays, is optional for both employers and employees. Overtime rules and state-specific daily hour caps remain in effect, influencing adoption across sectors like IT and essential services.

India’s newly implemented labour codes have revived discussions on whether employees can work four days a week while enjoying three days off. The short answer is yes, but only under a revised structure where total working hours remain unchanged.

Under the Code on Wages (Central) Rules and related provisions, employers may allow workers to complete their weekly hours over four days instead of the conventional five- or six-day schedule. However, the weekly cap remains fixed at 48 hours, meaning employees opting for the arrangement may work up to 12 hours a day, including breaks and mandated rest periods.

Is four day work week compulsory for everyone?

The four-day workweek is not a compulsory nationwide policy. It remains an optional arrangement that cannot be imposed by employers without employee consent.


The framework allows flexibility in structuring work schedules but does not mandate a reduced working week across sectors.

Overtime rules and state laws remain applicable

The labour code retains existing overtime safeguards. Employees working beyond the approved schedule or exceeding the 48-hour weekly limit are entitled to overtime pay at twice the regular wage.

While central provisions focus on weekly working-hour limits, several state-level Shops and Establishments laws continue to prescribe daily working-hour caps, typically ranging from 8 to 10 hours. These variations may influence how effectively the four-day work model is implemented across different states.

Which companies will adopt 4-day work week?

Industry adoption of the four-day structure is expected to be higher in knowledge-driven and flexible work environments. These include information technology and IT-enabled services, global capability centres, marketing and design firms, startups, and support-service companies.

Such sectors often operate on project-based or digital workflows, making compressed schedules more feasible.

Industries requiring continuous staffing or physical presence may face difficulties adopting the model. These include healthcare, hospitality, retail, transportation and logistics, and manufacturing sectors.

Labour code do mean not shorter workweek

The labour code does not formally establish a shorter workweek. Instead, it provides legal flexibility for employers and employees to restructure the existing 48-hour weekly schedule into four working days.

The extent of adoption will depend on industry requirements, employee agreement, and compliance with state-specific labour regulations.


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