In a major reform under the Ease of Doing Business (EoDB) initiative, the Telangana government has increased daily work hours for employees at commercial establishments (excluding shops) from eight to ten hours, while keeping the weekly cap fixed at 48 hours.
New Guidelines at a Glance
The order, issued by M Dana Kishore, Principal Secretary of Labour, Employment, Training and Factories, provides several operational conditions:
- Daily limit: 10 hours
- Weekly cap: 48 hours
- Overtime: Permissible beyond 48 hours, capped at 144 hours per quarter
- Breaks: Minimum 30-minute rest required if working over 6 hours
- Maximum work period including breaks: 12 hours per day
These changes are voluntary, meaning employees can choose to work up to 10 hours per day, enhancing operational flexibility without violating labor laws.
Aligning with Southern States
Telangana joins Andhra Pradesh and Tamil Nadu in implementing this reform, both of which have already adopted similar models. Neighboring Karnataka is also exploring a proposal to extend daily work hours to 10 in the private sector.
By doing so, Telangana signals its intent to streamline industrial operations and reduce red tape, thus improving investor confidence and regional competitiveness.
Legal Basis and Conditions
The exemption has been made under Section 73(4) of the Telangana Shops and Establishments Act, 1988, suspending the applicability of Sections 16 and 17 that previously limited daily work hours.
However, this flexibility comes with a compliance warning: the government retains the right to revoke the exemptions at any time without notice if any violations are found in implementation.
What It Means for Employers and Workers
While the reform aims to boost productivity, it also raises concerns about worker fatigue and longer workdays. Employers must ensure:
- Compliance with overtime pay
- Adherence to break rules
- Transparent communication with employees
The move offers greater choice but demands greater accountability.
Conclusion
Telangana’s decision to extend daily work hours underlines its commitment to a pro-business climate, provided labor rights are preserved. The success of this reform will depend on how fairly and efficiently it is implemented across sectors.
