The Telangana government has issued orders permitting commercial establishments (excluding shops) to increase daily work hours to 10, while maintaining the weekly limit at 48 hours. The Government Order (G.O.Rt.No.282) was issued on Saturday, July 5, 2025, by the principal secretary of the Telangana Labour, Employment and Factories department. This decision, framed as part of an "ease of doing business" initiative, modifies the previous regulations under the Telangana Shops and Establishments Act of 1988. The order is set to be published in the official gazette on July 8, 2025.

Key Provisions of the New Order

• Daily Work Hours: The new regulation allows a maximum of 10 working hours per day for employees in commercial establishments.
• Weekly Work Hours: The weekly working hours remain capped at 48 hours. Employees must be paid overtime wages for any work exceeding this limit.
• Rest Intervals: Employees working more than 6 hours a day are entitled to a mandatory rest period of at least 30 minutes.
• Maximum Spread Over: The total duration of work, including rest intervals, cannot exceed 12 hours in a single day.
• Overtime: While the weekly limit remains at 48 hours, overtime can be extended, but must not exceed 144 hours in any quarter.
• Enforcement: The government retains the right to revoke the exemption order if the stipulated conditions are violated.

Impact and Implications

The Telangana government believes that these changes will provide greater flexibility for companies and promote efficient work practices for employees.

Definition of Commercial Establishments

According to the Telangana Shops and Establishments Act, 1988, a "commercial establishment" includes entities that carry out trade, business, or professions, or any work related to these activities. This includes clerical departments of factories, industrial undertakings, commercial, trading, banking, or insurance establishments. Establishments managed by cooperative societies, and factories or industrial undertakings falling outside the scope of the Factories Act, 1948, can also be classified as commercial establishments. However, the new order explicitly excludes shops.

Historical Context and Labor Laws in Telangana

Telangana's labor law framework is based on central laws, with state-specific modifications. Key legislation includes the Minimum Wages Act of 1948, the Industrial Disputes Act of 1947, and the Employees' Provident Funds and Miscellaneous Provisions Act of 1952. The Telangana Shops and Establishments Act of 1988, originally rooted in Andhra Pradesh legislation, regulates work hours, wages, holidays, and other conditions in shops and commercial establishments. The Telangana Factories and Establishments (National Festival and Other Holidays) Act of 1974 provides guidelines for holidays.

Exemptions for IT/ITeS Sector

Notably, the Information Technology (IT) and IT-enabled Services (ITeS) sector in Telangana has been granted exemptions from certain provisions of the Shops and Establishments Act. These exemptions, extended in June 2024 for another four years, offer IT/ITeS companies greater flexibility in operational hours and workforce management, subject to specific conditions.

Reactions to Extended Work Hours

The move towards extended working hours has sparked debate regarding work-life balance, employee well-being, and fair compensation. While some view it as a way to enhance flexibility and productivity, concerns have been raised about potential exploitation and the need to protect employee rights. Recently, Genpact, an IT company, faced backlash over reports of a 10-hour workday policy, which triggered discussions about work-life balance and industry practices. Although the company clarified that it follows a 9-hour workday, the incident highlighted the sensitivity around extended work hours and the importance of transparent communication.