The Issue of Overwork in India – Explained, Pointwise

The issue of overwork in India has gained significant attention recently, particularly following the tragic death of Anna Sebastian Perayil, a 26-year-old employee at Ernst & Young (EY). Her parents allege that the overwhelming work stress she experienced contributed to her untimely demise. This incident highlights a growing concern regarding employee welfare and the unsustainable demands placed on workers in India, where long hours and high expectations have become normalized.

In September 2023, a series of media reports highlighted the severe toll of overwork on employees in India’s tech sector, with burnout being cited as a leading cause of resignation from major IT firms.

All these incidents and facts necessitates the reasons behind the widening issue of overwork in India.

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Data and Facts Related to Issue of Overwork in India

Average Working Hours: According to the Organization for Economic Co-operation and Development (OECD), an Indian worker typically works 48–52 hours per week, far exceeding the international standard of 40 hours per week. It is also very high compared to the global average of 34–36 hours.

Overwork related mortality: An ILO and WHO report found that overwork led to 745,000 deaths globally in 2016, due to ischemic heart disease and stroke, and India was among the top contributors.

India’s ranking: India is ranked as the second most overworked country globally, with an average of 46.7 hours per week per employed person. Bhutan tops the list, with 61% of its workforce working more than 49 hours weekly.

Stress and Burnout: As per a report by digital healthcare platform MediBuddy and CII, around 62 percent of Indian employees experience burnout. It is triple the global average of 20 percent, due to work-related stress and poor work-life balance.

What are the legal aspects of overwork in India?

Ambedkar on Overwork: Ambedkar actively advocated for an eight-hour work day, which became a cornerstone of his legacy. In the 7th Indian Labour Conference in New Delhi on November 27, 1942, he emphasised the necessity for humane working conditions. During his tenure, Factories Act of 1934 was amended to include provisions for betterment of workers which also included provisions for working hours.

Factories Act, 1948:

• Limits working hours to 48 hours a week and mandates rest days.
• Provides for overtime pay at twice the regular wage rate if an employee works beyond 9 hours a day or 48 hours a week.
• Applicable to workers in factories, this law ensures that employees aren’t burdened with excessive working hours without due compensation.

ILO’s convention on working hours: According to ILO’s Hours of Work (Industry) Convention, 1919, the working hours of persons employed in any public or private industrial undertaking shall not exceed 8 hours in the day and 48 hours in the week.

What are the Reasons Behind Overwork in India?

Concurrent List: Labour matters fall under the Concurrent List, both Parliament and state legislature hold the authority to enact relevant laws. There multiple laws for every state, therefore, bringing uniformity in labour laws becomes a difficult task.

Economic Pressures: Many sectors in India, particularly tech, finance, and gig economy jobs, demand extended working hours due to fierce competition and economic pressures to deliver results.

Toxic Work Environments: Companies often foster environments where long hours are expected and rewarded, discouraging employees from taking breaks or prioritizing personal time.

Hustle Culture: Hustle culture is defined as one that encourages employees to work more than normal working hours. The idea that success requires relentless work and long hours, was promoted by Silicon Valley entrepreneurs. The idea of working long hours as a sign of dedication and hard work is deeply embedded in Indian work culture. Employees often feel pressured to stay longer at the office to impress superiors.

Lack of Regulation: India has insufficient regulation on maximum working hours, especially in white-collar sectors. Although the Factories Act (1948) sets limits for industrial workers, there are no strict laws governing overtime for IT, service sectors, or gig workers.

Work-from-Home Trend: The pandemic-induced shift to remote work increased the working day by 1–2 hours for many employees, as reported by several surveys. The lack of work-life balance and the expectation to be always available has exacerbated this issue.

Government backing: Many governments are favoring longer working hours. For example, recently Karnataka government proposed an amendment to the Karnataka Shops and Commercial Establishment Act that increased the maximum length of the workday from the previously mandated 10 to 14 hours.

What are the Impacts of Overwork?

Physical and Mental Health Issues: Overwork is associated with health problems such as hypertension, heart disease, and sleep disorders. Mental health conditions like depression, anxiety, and burnout are increasingly being reported among employees.

Impact on Personal Life: Overwork severely affects work-life balance, with employees finding less time for family, social engagements, or personal development. It leads to a cycle of dissatisfaction both at work and home.

Reduced Productivity: While longer hours may initially lead to increased output, sustained overwork often results in diminished productivity, as employees become physically and mentally fatigued. On the contrary, Countries with shorter working weeks often report higher employee satisfaction and productivity levels, demonstrating the benefits of a balanced approach.

Economic Costs: The economic cost of overwork is substantial, with increased absenteeism, healthcare costs, and high turnover rates. It is estimated that burnout could cost Indian companies billions annually in lost productivity.

What are the International Best Practices Regarding Overwork?

Japan’s “Karoshi” Laws: After decades of grappling with “Karoshi” (death by overwork), Japan introduced measures to limit overtime. Companies are required by law to ensure employees do not work more than 45 hours of overtime per month, and employees can report overwork directly to labor authorities.

France’s “Right to Disconnect”: In 2017, France implemented a law allowing workers the right to disconnect from work-related emails and calls outside of office hours, ensuring a balance between work and personal life.

Germany’s Work-Life Balance: German companies, especially in tech and manufacturing, have a culture of respecting short working hours and strict rules around overtime. In fact, employees in Germany work fewer hours but maintain higher productivity levels.

Nordic Model: Scandinavian countries such as Denmark and Sweden prioritize shorter working hours and flexible work policies. Their focus on worker welfare has led to better productivity and work satisfaction.

What are the Suggestions to improve the situation of overwork in India?

Legal Framework: India needs to revise its labour laws to include clear limits on working hours for all sectors, not just industrial workers. An updated overtime regulation for white-collar and gig workers is essential.

Cultural Shift: A significant shift in corporate culture is needed, where companies reward productivity over long hours. Encouraging employee well-being and introducing flexible work hours can improve morale and reduce burnout.

Government Intervention: The government could introduce policies such as mandatory annual leaves, caps on weekly working hours, and compulsory breaks for employees in stressful sectors.

Corporate Responsibility: Corporations should focus on employee welfare through initiatives like employee assistance programs, mental health support, and wellness initiatives to address the problem of overwork.

Embracing Technology for Work Management: Companies can use time management tools and other technological solutions to monitor employee workloads and avoid overburdening staff.

Promoting Work-Life Balance: Both employers and employees need to actively promote and maintain work-life balance, which includes recognizing when employees are overworked and taking proactive steps to redistribute tasks.