Telangana Allows 10-Hour Workdays for Commercial Establishments, Aims to Boost Ease of Doing Business
HYDERABAD, Telangana, India: July 6, 2025: In a significant move intended to enhance the ease of doing business, the new orders issued by the government of Telangana now allow commercial establishments, with the exception of shops, 10 hours of workday. The ordinance passed on the 5th of July, 2025, has exempted certain provisions of the Telangana Shops and Establishments Act, 1988, while, however, keeping the weekly work hour ceiling and compulsory worker protections in place.
New Work Hour Regulations
The government order stipulates that employees in specified commercial establishments can now work up to 10 hours a day, up from the 8 hours previously stipulated. It is very important that the total working hours within a week do not exceed 48 hours. Any work carried out beyond this limit will attract overtime at the prescribed rates, on top of which there will be a limit of 144 hours of overtime in a quarter.
Worker Safeguards and Conditions
The new policy states that any employee working for more than six hours a day should have a rest break of not less than 30 minutes. Even so, the total spread of work and rest, including overtime, should not exceed 12 hours on any given day. Any establishment whose violation of the prescribed conditions will be met with stern action from the Labour Department, namely revoking this exemption, without prior notice.
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Rationale and Affected Establishments
The Labour, Employment, Training & Factories Department has decided that flexibility is basic to the conduct of business, to adjust to market demands, and to ensure operational efficiency. The exemptions given will cover all commercial establishments defined in Section 2(5) of the Telangana Shops and Establishments Act, 1988, except for the retail shops, which have their own regulations. The order will become effective after its publication in the Telangana Gazette on July 8, 2025.
Aligning with National and Regional Trends
Telangana’s move fits into a more general trend among Indian states on labor reform to grab investments and hence foster economic growth. In an initial step, other states, like Andhra Pradesh, for example, have made similar adjustments recently and also raised their maximum daily working hours to 10. The government believes that such flexibility will cast a positive influence on the business milieu within the state.
Potential Implications and Reactions
While the government highlights the ease of doing business, the decision might draw mixed reactions. Businesses should appreciate the flexibility, permitting better scheduling and operations. Labor organizations will probably raise many objections, fearing the pressure put on employees contrary to rest periods and overtime pay. Clear conditions set by the government and warnings of the possible revocation of such exemptions will be two balances between the business community and workers’ welfare.
