Work-life balance has become an increasing concern in the Indian corporate sector because of the nation’s rapid technical breakthroughs and growing economy. Although the need for greater efficiency encouraged innovation and industrial growth, employee well-being has frequently suffered as a result. This disparity is made worse by high-pressure jobs, long hours, cultural norms that glorify overwork, and a lack of statutory remedies. Many businesses support longer workdays, especially in high-demand sectors like IT and startups, where it is generally expected that staff members will be available after hours. This atmosphere makes employees more stressed and less mentally healthy, leaving them unsatisfied with their jobs.
The idea of work-life balance has gained popularity throughout the world, and nations like the USA and the countries in the EU are enacting progressive laws meant to enhance workers’ quality of life. An example of progressive regulation can be found in the EU’s commitment to limiting work hours, requiring flexible work arrangements, and offering substantial maternity leave. The USA, on the other hand, has shown how employer-led initiatives can fill legislative gaps in the absence of strong statutory mandates.
At this critical point, India’s corporate sector could undergo a transformation through the adoption of efficient methods from other nations. Long working hours, shared caregiving obligations, and mental health policies are some ways that India might foster a work environment that prioritizes both economic growth and employee well-being. Work-life balance reforms are not only desirable but also necessary to promote long-term growth and a healthier workforce.
THE PROBLEM OF WORK-LIFE BALANCE IN INDIA
A 26-year-old employee of Ernst and Young named Anna Sebastian passed away months after joining the company due to work related stress which exhausted her mentally and physically. The news spread like wildfire, causing debates among experts and policymakers about work-life balance.[1] According to a report published in the Economic Times, around 78% of Indian employees experience burnout due to work-related reasons. This number is more than three times higher than the global average.[2] This alarming statistic underscores the urgent need for a paradigm shift in work-life balance is perceived and implemented in Indian companies.
Several reasons contribute to the work-life imbalance. Some of these include long working hours, high work demands, and cultural norms that glorify workload. A report published by PwC shows that around 43% of Indian employees are likely to change within the next year, primarily due to dissatisfaction with their work-life balance.[3] In addition, the absence of a legal framework recognising the ‘right to disconnect’ means that employees are often expected to be available outside of regular working hours, further causing stress and burnout.
Companies that disregard work-life balance risk losing their most important asset: brilliant and driven employees. To ensure long-term success and a healthier workforce, work-life balance must be prioritized as the Indian business sector grows.
The main factor affecting work-life balance is long work-life balance is long working hours. Many companies in India, especially in the IT and startup sectors, expect employees to work long hours, often beyond the standard 9-to-5 schedule. The culture of extended working hours is glorified by employers and seen as a badge of honour.[4] This work culture is evident from the study and reports from the Economic Times and PwC. A study by Arcadis’ Sustainable Cities Index 2016 found that major Indian cities have less than 20% of people reporting a good work-life balance.[5]
While some companies have started adopting hybrid work models, many still lack the necessary flexibility to allow employees to balance their work and personal lives effectively. In a recent interview, the founder of Infosys, Mr. Narayan Murty, advocated for a 70-hour work week as opposed to the government’s mandated 48-hour work week.[6] In a recent podcast with ANI, CEO of OLA, Bhavish Aggarwal, stated that work-life balance is a Western construct, saying Saturday and Sunday off were not an “Indian thing.” Such statements by established corporate magnates likely have an effect opposite to the one desired.
The problem of balancing work and personal life poses a significant problem to working women, often struggling to juggle professional duties with household chores and caregiving. In India, women are expected to manage the household. Juggling this with their work commitments, as well as taking care of their child, adds a burden upon them.[7] According to the “Women in India Inc HR Survey Report,” 34% of women leave jobs over work-life balance issues, compared to only 4% of men. The challenges faced by women are not adequately addressed by current labour laws, which can further exacerbate work-life balance issues for women.[8]
LEGAL COMPARATIVE ANALYSIS
- Overview of Labour Law in Corporate Sector: Numerous statutes, like the Factories Act of 1948[9], the Industrial Disputes Act of 1947[10], and the newly codified Labour Codes, such as the Occupational Safety, Health and Working Conditions Code of 2020[11] and the Code on Wages of 2019[12], control labour law in India. These regulations seek to promote workplace safety by regulating pay, working hours, and labour conflicts. However, the business sector frequently faces difficulties due to their fragmented and compliance-heavy structure.
In contrast, the USA operates on a decentralized system with labour laws varying between federal and state levels. The principal federal statutes include the Fair Labor Standards Act (FLSA)[13], which governs minimum wages and overtime pay, and the Occupational Safety and Health Act (OSHA), [14]which ensures workplace safety. The employment-at-will doctrine prevalent in the USA grants employers the freedom to terminate employment without cause, subject to anti-discrimination protections under laws like the Civil Rights Act, 1964.[15]
The EU adopts a harmonized approach, ensuring uniformity across member states while respecting national autonomy. Key legislation includes the European Working Time Directive (Directive 2003/88/EC)[16], which limits weekly working hours to 48, and the General Data Protection Regulation (GDPR)[17], which extends to workplace data privacy. EU laws emphasize employee protection, particularly concerning job security, maternity benefits, and work-life balance.
- Working Hours and Overtime Regulations: According to India’s labour rules, the Factories Act of 1948, an eight-hour workday is required. Although it is not often enforced, overtime compensation is mandated at double the regular rate. White-collar workers in the corporate sector frequently put in excessive hours due to unclear policies, which compromises both production and worker well-being.
Although the FLSA requires overtime pay for non-exempt employees who work more than 40 hours per week, the USA offers more freedom. Overwork may result from exempt workers’ lack of overtime rights, which includes many in the business sector. However, this problem is somewhat alleviated by the widespread availability of telecommuting choices and flexible scheduling in American businesses.
When it comes to working hours, the EU sets the gold standard. In addition to guaranteeing at least 11 consecutive hours of rest each day, the Working Time Directive caps weekly hours at 48, including overtime. Work-life balance is also promoted by giving employees the right to at least four weeks of paid yearly leave. Because of these strong safeguards, the workplace is healthier, which raises output and employee satisfaction.
- Work-life balance and Employee benefits: With few statutory options for paid leave or flexible work schedules, India lags behind other countries in fostering work-life balance. The Maternity Benefit Act of 1961[18] offers 26 weeks of paid leave as part of maternity benefits; nevertheless, working parents’ access to childcare facilities and paternity leave is restricted. Progressive policies have been adopted by the growing IT sector, although they are still the exception rather than the rule.
The United States performs poorly when it comes to statutory paid leave, as there are no legislative regulations for parental or vacation leave. Many people cannot utilize the 12 weeks of unpaid leave provided by the Family and Medical Leave Act (FMLA)[19] for certain family-related and medical reasons since it does not provide wage replacement. Large companies, however, frequently close this gap by providing extensive benefits like unrestricted paid time off and remote work options.
The EU’s dedication to work-life balance makes it stand out. The Parental Leave Directive[20] promotes shared parenting responsibilities by guaranteeing that both parents can take advantage of four months of leave, with one month not transferable to the other parent. The Work-Life Balance Directive (2019/1158)[21] requires flexible working arrangements, giving employees the authority to ask for schedule modifications. These programs highlight the EU’s emphasis on developing a business culture that is welcoming to families.
Lesson for India: Enhancing Work-life Balance
India has made progress in reforming its labour laws, but it has not yet fully incorporated work-life balance-promoting policies. India can implement regulations to establish a more inclusive and healthy work environment by learning from the United States (USA) and the European Union’s (EU) practices.
- Flexible Working Arrangements: Fostering work-life balance requires flexible working rules, particularly in the digital age. The right to request predictability in work schedules is granted to employees by the EU’s Directive on Transparent and Predictable Working Conditions (Directive (EU) 2019/1152)[22]. The capacity to demand consistency in zero-hour contracts and protection against abrupt shift changes are two examples of this. Likewise, the UK’s Right to Request Flexible Working Regulations, which were revised by the Employment Relations Act of 2023[23], allow workers to suggest changes to their work schedules without requiring justification.
The USA’s Telework Enhancement Act of 2010[24] made remote work official for federal employees, and after the COVID-19 outbreak, private businesses embraced hybrid work arrangements in large numbers. According to data from a Gallup poll conducted in 2022, 8 out of 10 remote-capable occupations in the United States provided hybrid or totally remote work possibilities, which had a major positive impact on worker productivity and satisfaction.[25]
Apart from short-term pandemic precautions, India has no legal provisions for flexible or remote work arrangements. India can think about enacting legislation similar to the US federal telework regulations and the EU’s predictable work conditions in order to close this gap. Such rights could enable workers to balance work and personal obligations while lowering stress and burnout if they are incorporated into the Occupational Safety, Health, and Working Conditions Code, 2020.
- Parental Leave and Caregiving Policies: One of the main features of EU labour law is its comprehensive parental leave policy. According to the Parental Leave Directive (Directive 2010/18/EU), parents must be granted a minimum of four months of leave, with one month of that leave being non-transferable. Additionally, to encourage shared caregiving obligations, nations such as Sweden offer up to 480 days of shared parental leave, with 90 days set out specifically for fathers.
The USA has made significant progress at the state level but trails behind other countries in terms of federal requirements for paid parental leave. Payroll contributions are used to fund California’s Paid Family Leave (PFL) program, which provides six to eight weeks of income replacement for caring for or bonding with a new child. According to 2023 data from the U.S. Bureau of Labor Statistics (BLS), over 23% of workers in the private sector currently have access to paid parental leave, which is a significant increase over prior years.[26]
The Maternity Benefit (Amendment) Act, 2017[27] in India gives mothers 26 weeks of paid leave, although it does not fully cover paternity leave. The Central Civil Services (Leave) Rules, 1972, which grant central government employees a 15-day paternity leave limit, is insufficient to change long-standing gender norms. To promote equal caring and support a gender-balanced workforce, India might implement shared parental leave laws like those in Sweden and California.
- Work Hour and Overtime Regulation: Overwork is still a problem in the corporate sector of India. Enforcement is uneven even though the Factories Act of 1948 requires an eight-hour workday, and the Labour Codes aim to restrict weekly work hours to 48. According to International Labour Organization (ILO) reports, 14% of Indian workers put in more than 50 hours each week, frequently without receiving sufficient overtime pay.[28]
Weekly work hours, including overtime, are strictly limited to 48 hours by the EU’s Working Time Directive (Directive 2003/88/EC)[29]. Further measures have been taken in nations like France, where the El Khomri Law[30] established the “right to disconnect,” allowing workers to disregard work emails after hours. Similarly, as part of a pilot project, Spain lowered the typical workweek to 35 hours in a few industries.
India can integrate provisions for work-hour caps and the right to disconnect into its labour law framework. For example, incorporating these rights into the Occupational Safety, Health and Working Conditions Code, 2020 could help mitigate employee burnout and improve quality of life.
CONCLUSION
Maintaining work-life balance in India’s corporate sector is still difficult but essential to promoting sustainable growth and a productive workforce. Even with the implementation of the Labour Codes, which improved labor regulations, considerable work needs to be done to bring India up to international standards. Long work hours, inadequate leave regulations, and a lack of mental health support create an imbalance that not only compromises workers’ physical and mental health but also runs the danger of compromising corporate productivity and employee retention.
Some important lessons for India are highlighted by a comparison with the US and the EU. The strong legislative framework of the EU, which places a strong emphasis on flexible work schedules, shared caregiving duties, and limited work hours, shows how a legal emphasis on employee well-being can increase productivity. Employer-driven programs in the USA, meanwhile, provide guidance on creating a positive business culture even in the lack of extensive federal regulations.
Through adoption of globally recognized standards and adaptation to its unique socioeconomic circumstances, India has the ability to establish a revolutionary working environment. India’s corporate sector can continue to expand while putting the welfare of its most valuable resource—its employees—first by tackling the fundamental causes of work-life imbalance.
[1] Outlook Business, EY Employee Death, https://www.outlookbusiness.com/news/ey-employee-death-sitharamans-divine-intervention-advice-sparks-outrage-opposition-calls-her-outright-cruel (last visited Nov. 24, 2024)
[2] The Economic Times, Nearly 78% employees in India experience burnout, says UKG study, https://economictimes.indiatimes.com/jobs/hr-policies-trends/nearly-78-employees-in-india-experience-job-burnout-says-ukg-study/articleshow/108826598.cms?from=mdr (last visited Nov. 24, 2024)
[3] Hindustan Times, Nearly Half of India’s Working Professionals want to change jobs this year: PwC Survey, https://www.hindustantimes.com/business/nearly-half-of-indias-working-professionals-want-to-switch-jobs-this-year-pwc-survey-101719317748668.html (last visited Nov. 24, 2024)
[4] Hindustan Times, Techie compares work-life balance in India vs Sweden: ‘Slept in Gurgaon office’ (last visited Nov. 24, 2024)
[5] Careerizma, Work-life balance statistics in India worst among peer countries – Careerizma, last visited (Nov. 25, 2024)
[6] Times of India, Narayana Murthy on his 70-hour work week comments, https://timesofindia.indiatimes.com/technology/tech-news/narayana-murthy-on-his-70-hour-work-week-comments-i-am-sorry-i-have-not-changed-/articleshow/115378049.cms , last visited (Nov, 25. 2024)
[7] Mamta Shukla, A STUDY ON WORK-LIFE BALANCE IN WORKING FEMALE EMPLOYEES, 4, pp. 59-64
[8] Business Standard, 34% women leave jobs over work-life balance, 34% of women leave jobs over work-life balance, only 4% of men do: Report | Company News – Business Standard, last visited (Nov. 25, 2024)
[9] Factories Act, No. 63 of 1948, INDIA CODE (1948).
[10] Industrial Disputes Act, No. 14 of 1947, INDIA CODE (1947).
[11] Occupational Safety, Health and Working Conditions Code, No. 37 of 2020, INDIA CODE (2020).
[12] Code on Wages, No. 29 of 2019, INDIA CODE (2019).
[13] Fair Labor Standards Act of 1938, 29 U.S.C. §§ 201–219 (2018).
[14] Occupational Safety and Health Act of 1970, 29 U.S.C. §§ 651–678 (2018).
[15] Civil Rights Act of 1964, 42 U.S.C. §§ 2000e–2000e-17 (2018).
[16] Council Directive 2003/88/EC, 2003 O.J. (L 299) 9 (EC).
[17] Regulation 2016/679, 2016 O.J. (L 119) 1 (EU).
[18] Maternity Benefit Act, No. 53 of 1961, INDIA CODE (1961).
[19] Family and Medical Leave Act of 1993, 29 U.S.C. §§ 2601–2654 (2018).
[20] Council Directive 2010/18/EU, 2010 O.J. (L 68) 13 (EU).
[21] Council Directive 2019/1158, 2019 O.J. (L 188) 79 (EU).
[22] Directive (EU) 2019/1152, 2019 O.J. (L 186) 105.
[23] Employment Relations Act, 2023, c. 7 (UK).
[24] Telework Enhancement Act of 2010, 5 U.S.C. § 6501 (2010).
[25] Gallup, State of the Global Workplace Report 2022, https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx (last visited Nov. 23, 2024).
[26] U.S. Bureau of Labor Statistics, National Compensation Survey: Employee Benefits in the United States, March 2023, https://www.bls.gov/ncs/ebs (last visited Nov. 23, 2024).
[27] Maternity Benefit (Amendment) Act, No. 6 of 2017, INDIA CODE (2017).
[28] Int’l Labour Org., Working Hours and Work-Life Balance Around the World (2023), https://www.ilo.org/global/publications/books/WCMS_850248/lang–en/index.htm (last visited Nov. 23, 2024)
[29] Working Time Directive, Council Directive 2003/88/EC, 2003 O.J. (L 299) 9 (EU).
[30] El Khomri Law, No. 2016-1088 (Fr.).
Author: Arav Pattjoshi
Juris Centre 