The Telangana government has announced a major change in labour regulations, allowing commercial establishments (excluding shops) to extend daily working hours from eight to ten. The update was formalised through a government order (GO) issued on 5 July, 2025, by the Labour, Employment and Factories Department.
This move is intended to provide greater operational flexibility to banks, IT firms, insurance companies, customer-service agencies and other businesses and professional services.
The new guidelines are governed by the Telangana Shops and Establishments Act, 1988, and aim to support service-sector operations, especially those functioning in multiple time zones or shift-based environments.
Despite the increase in daily work limits, the weekly cap would remain 48 hours. Any work beyond this will require payment of overtime wages.
Additionally, worker safeguards have been built into the order. Employees must not work more than six hours at a stretch without a break of at least 30 minutes. Furthermore, the total workday, including rest periods, must not exceed 12 hours.
The directive is not meant for shops or factories, which continue to be governed by separate regulations under the Telangana Shops and Establishments Act and the Factories Act, 1948, respectively.
The decision aligns Telangana with labour reforms introduced in neighbouring states such as Andhra Pradesh and Karnataka, which have also allowed longer work shifts in specific sectors. While these reforms are seen as efforts to improve ease of doing business and attract investment, concerns remain over their impact on worker health and fair treatment.
Labour unions have called for close monitoring to ensure employers comply with rest break rules and overtime pay provisions. Without strong enforcement, experts feel the extended hours may prove to be too much of an unfair load for casual and contract workers.
