The Union government in the Economic Survey 2024-25 has argued against the cap on working hours in the factories. According to the government, India's working hour regulations prevent manufacturers from meeting demand surges and participating in global markets.
"There are instances where labour regulations designed to protect workers' rights perhaps inadvertently hinder the growth of firms, especially small and medium enterprises, by restricting their ability to expand operations when needed compared to global peers. In doing so, it dampens employment generation as well", the Economic Survey mentioned.
Notably, labour laws in other countries allow manufacturers to average working hour limits across weeks and sometimes months. The International Labour Organisation (ILO) recommends allowing manufacturers the freedom to average working hour limits across 3 weeks. However, India’s working hour limits may increase the cost, time, and risk of manufacturing, the government mentioned in the Economic Survey.
From a global perspective, India, the United Kingdom, Vietnam, and Germany's weekly working hour limit stands at 48 hours currently. And according to Section 65(3)(iv) of the Factories Act, "No worker shall be allowed to work overtime for more than seven consecutive days, and the total number of overtime hours in any...
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