Telangana extends daily working hours for commercial establishments

At a glance

• Telangana has approved an increase in daily working hours for commercial establishments (excluding shops) from eight hours to ten hours.
• The weekly cap remains at 48 hours, ensuring compliance with labour welfare norms.
• The total spread of work, including rest intervals, must not exceed 12 hours in any single day.
• No employee should work more than six hours continuously, without a minimum interval of rest for 30 minutes.
• Employers must pay overtime wages for any hours worked beyond the limits.
• The change aims to provide operational flexibility while safeguarding employee rights.
• Strict conditions apply to prevent exploitation and maintain work-life balance.

We would like to express gratitude to JSA for their contribution on this publication.

The Telangana government through a notification on 8 July 2025, introduced a significant change to labour regulations, allowing commercial establishments (excluding shops) to increase daily working hours from eight hours to ten hours. This move is intended to provide businesses with greater flexibility in managing operations, particularly in sectors where extended hours can enhance productivity. 

Key conditions under the new framework

• Weekly limit: Despite the increase in daily hours, total working time cannot exceed 48 hours per week, ensuring alignment with national labour standards.
• Mandatory overtime pay: Any work beyond the prescribed daily or weekly limits must be compensated at overtime rates as per applicable laws.
• Spread over limits: The total spread over of work including intervals of rest should not exceed 12 hours on any day.
• Intervals for rest: Employers are required to ensure that no employee works for more than six hours at a stretch, without having been provided an interval of rest for at least 30 minutes.
• Quarterly limit: No employee is allowed to undertake more than 144 hours of overtime work in any quarter.
• Employee welfare: The government has emphasised that this relaxation does not dilute existing provisions on rest intervals, safety, and statutory benefits.

Implications for employers 

Organisations operating in Telangana should review their workforce scheduling and payroll systems to ensure compliance with the revised norms. While the change offers operational flexibility, failure to adhere to overtime and weekly or quarterly cap requirements could attract penalties. Additionally, non-adherence to such conditions could risk the revocation of such exemptions by the State Government in respect of the defaulting organisation.

This development reflects a broader trend among states to modernise labour laws, balancing business needs with employee welfare. Employers should stay alert for further notifications detailing procedural requirements and enforcement mechanisms.

However, the interplay of these provisions under the respective State specific shops and commercial establishments legislations and the newly notified Labour Codes, particularly with respect to those conditions which deviate from stipulations under the Codes, will need to be evaluated and on-ground implementation of the same needs to be assessed in due course.