3 Days off every week? Here’s what new labour code rules say about 4-day workweek

The recently notified labour code regulations under the Code on Wages (Central) Rules allow employers to introduce a four-day work week option for employees. Still, the total number of working hours in a week cannot exceed 48 hours according to the new guidelines.

Under the proposed arrangement, employees may work four days a week and get three days off. In order to meet the 48-hour weekly limit, the daily shift may extend to around 12 hours, including breaks and rest periods prescribed under applicable laws.

Labour law experts say the provision does not make a four-day work week compulsory for companies. It only provides flexibility to employers to adopt the model if both the employer and employee agree to the arrangement.

According to legal experts, the four-day work week can be implemented only if:
● Employees agree to the condensed workday and shorter workweek
● Employers do not impose it unilaterally
● Weekly working hours remain within 48 hours
● Overtime beyond the approved schedule is paid at twice the normal wage rate

Experts say the Occupational Safety, Health and Working Conditions (Central) Rules, 2026 focus on the weekly working-hour cap instead of prescribing a fixed daily overtime threshold. This gives employers flexibility in structuring work schedules while ensuring that overtime pay protections remain applicable.

According to legal experts, industries such as IT, IT-enabled services, global capability centres (GCCs), marketing, designing and other knowledge-based sectors may find it easier to adopt a four-day work week structure. Certain charitable organisations and support functions may also consider the model.

Experts say sectors such as healthcare, hospitals, hospitality, retail, transportation, logistics and manufacturing may face operational difficulties in shifting to a compressed four-day work structure because of continuous service and staffing requirements.