Working Hours, the 4-Day Week and the 48-Hour Cap

Under the Labour Codes, the weekly working-hours cap is 48 hours, and employers can choose to spread that cap across four longer days instead of the traditional five or six, which is the basis for the "4-day week" conversation.

Key facts at a glance

• The statutory weekly working hours cap is 48 hours under the Labour Codes framework.
• Employers have flexibility to spread the 48-hour cap across fewer working days, enabling a 4-day-week structure with longer daily shifts.
• A compressed schedule must still respect daily maximum hour limits and mandated rest intervals.
• Overtime compensation obligations generally continue to apply to hours worked beyond the prescribed limits.
• Sector-specific rules or exemptions may apply, so applicability varies by industry and establishment type.
• The Codes are in force nationally since 21 November 2025, but state-level rule notification determines practical enforcement timing.

What "4-day week" actually means under the Codes

The phrase "4-day week" has generated a lot of public interest, but it does not mean employees work fewer total hours. It means the same 48-hour weekly cap can be compressed into four working days instead of five or six, which typically means longer daily shifts, often around 12 hours, followed by three days off instead of the traditional one or two.

This is an option employers can choose to implement, not a mandatory shift for every workplace. Businesses that prefer to retain a traditional five- or six-day structure within the 48-hour cap can continue to do so.

Daily hour limits still apply

Even under a compressed schedule, employers cannot simply stretch a working day indefinitely. Daily maximum working-hour limits and mandated rest periods between shifts remain part of the framework, meaning a 4-day week has to be designed carefully to stay within both the weekly total and the daily ceiling, with adequate rest breaks built into each shift.

Comparing traditional and compressed schedules

Why employers are considering the 4-day model

Some employers see the compressed week as a way to reduce commuting-related costs and improve employee wellbeing without changing total labour cost, since total weekly hours remain the same. Others find it useful for continuous-operation businesses that already run shift-based schedules, where a four-day rotation can fit more naturally into existing shift patterns.

However, longer daily shifts are not suitable for every role or every employee, particularly where fatigue, safety, or client-facing coverage considerations make a traditional spread more practical.

Employee consent and communication

Because a compressed schedule changes the shape of an employee's working life substantially, even without changing total hours or pay, employers should treat this as a material change requiring clear communication, and in many cases formal consent or updated appointment terms, rather than a routine scheduling tweak.

Overtime still applies beyond the cap

Whether an employer runs a traditional or compressed schedule, hours genuinely worked beyond the applicable weekly or daily limits typically still attract overtime pay obligations under the wages framework. Employers moving to a 4-day model should build overtime tracking into their compressed-schedule design from the outset, rather than assuming the new structure eliminates overtime exposure.

What HR and operations teams should check before switching

Confirm your state's rule-notification status, since practical enforcement and specific daily-hour ceilings depend on state rules that are still being finalised in many places. Model the compressed schedule against your specific industry's rest-period and safety requirements, particularly for physically demanding or safety-sensitive roles. Update appointment letters, shift rosters and attendance systems together, so the transition is documented and defensible.

If you are not sure how the working-hours rules under the Labour Codes apply to your business, ComplianceCheck's labour code assessment gives you a clear picture in a few minutes.

Sources

• Ministry of Labour and Employment - labour.gov.in
• Respective state labour department websites

This guide is general information, not legal advice. Requirements vary by state, sector and headcount - confirm specifics with a compliance professional or the relevant authority.