Is a 90-hour work week legal in India? Are corporate employees entitled to overtime pay? | Explained

Is a 90-hour work week legal in India? Are corporate employees entitled to overtime pay? | Explained

Several India Inc leaders, including veterans like Infosys co-founder NR Narayana Murthy and startup founders like Ola Electric’s Bhavish Aggarwal, have advocated for long working hours to accelerate India’s growth. The latest to join this list is Larsen & Toubro (L&T) chairman SN Subrahmanyan, who has suggested a 90-hour workweek and expressed a desire for employees to work on Sundays as well.

L&T chief’s view has received sharp reactions from several industrialists, including Harsh Goenka, Rajiv Bajaj, and Devina Mehra, who have labeled it a “burnout recipe.” Bajaj remarked, “If you want a 90-hour week, start from the top. The number of hours worked doesn’t matter; quality of work does. We need a kinder, gentler world more than ever before,” Bajaj said.

The controversy surrounding long work hours comes over a year after Infosys Narayana Murthy proposed a 70-hour workweek for the youth to help India compete with rapidly growing economies like China and Japan.

Is a 90-hour workweek even legal in India?

Corporate employees are often seen working extra hours, sometimes for specific projects, while for some it may have become the norm. We often see factory workers, or wage workers, essentially those in blue-collar jobs, work extra hours and get paid for it additionally. However, that’s not usually the case for ‘salaried’ white-collar employees.

Are long working hours regulated by law?

Mansi Singh, Partner at BTG Advaya, explained to CNBC-TV18 that states in India stipulate maximum working hours. For example, in Maharashtra, employees cannot be required to work more than nine hours a day or 48 hours a week. Similarly, in Telangana, the limit is eight hours a day or 48 hours a week.

Varsha Kripalani, Partner and Head of Human Resource and Industrial Law Practice at SNG and Partners, cited Section 8 of the Delhi Shops and Establishment Act, which mandates that no employee should work more than nine hours a day or 48 hours a week. However, she noted, “There are provisions allowing state governments to exempt specific shops and establishments from the purview of Section 8.”

Also Read: 90-hour work week advocate L&T chairman took home ₹51 cr in FY24, 530 times employees’ median salary

Are these laws applicable to all employees?

BTG Advaya’s Singh clarified that the Shops and Establishments Act does not apply to all categories of employees. For instance, in Maharashtra, it excludes employees in managerial, confidential, or supervisory roles. Similarly, in Telangana, it does not cover employees in managerial positions earning more than ₹1,600 per month.

“Many white-collar employees are not covered under these acts, so their work hours are not regulated by law,” Singh added. In such cases, their hours of work and any overtime pay are governed by company policies.

Also Read | 90-hour work week debate: Devina Mehra’s 5 reasons why it’s ‘bunkum,’ when KP Singh said play hard too and more

Are white-collar employees entitled to overtime pay?

If an employee is covered by the state’s applicable Shops and Establishments Act, they are entitled to overtime pay. According to Singh, overtime pay in most states, including Maharashtra and Telangana, is calculated as twice the regular wages for the overtime hours worked.

What can employees do in case of non-payment?

Employees can report non-payment of wages or overtime to the relevant Labour Department, Commissioner, or Inspector, who will initiate proceedings for contravention of the Shops and Establishments Act. Singh explained that penalties are prescribed under these acts for such violations.

Kripalani added that under Section 21 of the Delhi Shops and Establishments Act, employees can file complaints with the Commissioner of Workmen’s Compensation or another designated authority to claim unpaid wages, including overtime.

Also Read | ‘Extraordinary outcomes require extraordinary effort’: L&T backs chairman’s comments on 90-hour work week

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