Introduction
- The issue of overwork in India has come under sharp focus, especially after the tragic death of 26-year-old Anna Sebastian Perayil, an employee at Ernst & Young (EY). Her parents claim that excessive work-related stress played a role in her untimely death.
- This incident underscores growing concerns about employee well-being and the unrealistic demands placed on workers in India, where long hours and high-pressure environments are becoming the norm.
- In September 2023, various media reports shed light on the escalating problem of overwork in India’s tech industry, with burnout being a key factor driving resignations from major IT companies.
- These incidents emphasize the need to examine the underlying reasons contributing to the increasing problem of overwork in India.
- According to the International Labour Organization (ILO), India ranks among the most overworked countries globally, with employees averaging 46.7 hours of work per week.
Facts Related to Overwork in India
High Percentage of Overworked Individuals:
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- India has 51% of its employed population working 49 or more hours weekly, making it one of the most overworked nations globally, second only to Bhutan (61%).
- According to the Periodic Labour Force Survey (PLFS) for July 2023-June 2024, regular wage earners are clocking an average of 48.2 hours a week, compared to just under 40 hours for casual laborers and the self-employed.
- As per ILO, Vanuatu is the country with the shortest average working hours per employed person. Workers in Vanuatu clock an average of just 24.7 hours per week, the lowest among all surveyed nations.
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Global Working Hours:
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- According to the OECD, Indian workers average 48-52 hours per week, significantly higher than the international standard of 40 hours and the global average of 34-36 hours.
Overwork-Related Mortality:
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- A joint report by the ILO and WHO revealed that overwork caused 745,000 deaths globally in 2016, primarily due to ischemic heart disease and stroke, with India being a notable contributor.
India’s Global Standing:
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- According to the latest data from the International Labour Organization (ILO), the average Indian worker clocks 46.7 hours each week. This makes India the second most overworked country, following Bhutan.
Burnout Rates:
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- A report from MediBuddy and CII indicates that 62% of Indian employees experience burnout, which is three times higher than the global average of 20%.
Legal Aspects of Overwork in India
Ambedkar’s Advocacy:
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- B.R. Ambedkar championed the eight-hour workday, emphasizing humane working conditions during the 7th Indian Labour Conference in 1942. His efforts influenced amendments to the Factories Act of 1934.
Factories Act, 1948:
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- This act limits working hours to 48 per week, mandates rest days, and requires overtime pay at twice the regular rate for any work beyond 9 hours daily or 48 hours weekly, aimed at protecting workers from excessive hours.
ILO’s Convention on Working Hours:
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- The ILO’s Hours of Work (Industry) Convention (1919) establishes a maximum of 8 hours per day and 48 hours per week for workers in industrial undertakings.
Reasons Behind Overwork in India
Concurrent Legislative Challenges:
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- Labour issues fall under the Concurrent List of the Indian Constitution, allowing both Parliament and state legislatures to create laws. For example, the Maharashtra Shops and Establishments Act mandates different working conditions compared to the Karnataka Shops and Commercial Establishment Act. This results in a patchwork of regulations across states, complicating efforts to standardize working conditions. As of 2021, only 20 states and Union Territories had enacted comprehensive labour codes, leading to significant variations in employee protections.
Economic Pressures:
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- Sectors like technology, finance, and the gig economy often require extended hours due to intense competition. For instance, a report from the International Labour Organization (ILO) noted that in the IT sector, around 60% of employees work more than the standard 48 hours per week, driven by project deadlines and client expectations. In finance, firms like Goldman Sachs have been reported to demand upwards of 80 hours a week from their analysts, highlighting the pressure for high performance.
Toxic Work Environments:
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- Many organizations foster a culture that rewards long hours. For example, a 2020 survey by the Economic Times found that 62% of employees in the consulting sector reported feeling pressured to work overtime to meet client demands. Companies such as Deloitte and KPMG have faced criticism for fostering such environments, which has led to high turnover rates and employee dissatisfaction.
Hustle Culture:
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- The “hustle culture” in India suggests that success is synonymous with long working hours. Startups, particularly in the tech sector, often promote this mindset. For instance, a survey by LinkedIn found that 65% of Indian professionals believe that working long hours is necessary for career advancement. Companies like Zomato and Swiggy exemplify this culture, with reports indicating that employees regularly put in 60+ hours per week to show dedication.
Lack of Regulation:
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- In white-collar sectors, regulations on working hours are insufficient. The Factories Act (1948) applies mainly to industrial workers, leaving IT and gig economy workers without similar protections. According to a study by the Labour Ministry, only 30% of employees in the gig economy have access to any formal regulations regarding working hours or overtime pay, leading to widespread exploitation.
Work-from-Home Challenges:
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- The pandemic-induced shift to remote work has led to many employees working an additional 1-2 hours daily. A survey by Microsoft in 2021 found that 41% of employees felt burned out due to work-from-home conditions, with many reporting an increase in work hours by an average of 2.5 hours per day. This trend has blurred the boundaries between work and personal life, exacerbating issues of burnout and dissatisfaction.
Government Support for Longer Hours:
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- Some state governments have actively proposed policies to extend working hours. In 2021, the Karnataka government suggested an amendment to the Karnataka Shops and Commercial Establishment Act to increase the maximum workday from 10 to 14 hours. This policy change has sparked concern among labor rights activists, as nearly 70% of workers surveyed expressed fears that such changes would lead to exploitation and health issues.
Impacts of Overwork
Health Consequences:
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- Overwork is linked to a range of serious health issues. A report by the World Health Organization (WHO) highlighted that overwork contributed to 745,000 deaths globally in 2016, with India being one of the countries significantly affected. Mental health issues are also prevalent, with a survey by the National Mental Health Survey of India revealing that 10% of the population suffers from depression, exacerbated by work-related stress.
Effects on Personal Life:
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- Overworking disrupts work-life balance, leaving employees with limited time for family, social engagements, and personal development. A study by the Indian Institute of Management (IIM) noted that 58% of employees reported feeling disconnected from their families due to long working hours. Many employees also express dissatisfaction; for example, a survey by Gallup found that only 13% of employees in India feel engaged at work, indicating a potential link between overwork and personal dissatisfaction.
Reduced Productivity:
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- Although longer hours may initially lead to increased output, sustained overwork generally results in diminished productivity. A report by the OECD found that countries like Denmark and Sweden, which have shorter working weeks (around 37 hours), often report higher employee satisfaction and productivity levels. In contrast, Indian employees working over 48 hours a week frequently experience fatigue, leading to a decline in work performance. A survey conducted by the Economic Times revealed that 55% of employees felt their productivity decreased after working extended hours regularly.
Economic Costs:
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- The economic burden of overwork in India is substantial. A study by the World Economic Forum estimated that burnout and related health issues could cost Indian businesses over $14 billion annually due to lost productivity, increased healthcare expenses, and high turnover rates. Furthermore, absenteeism is a significant issue; according to the Indian Council for Research on International Economic Relations (ICRIER), companies face an increase of 8-10% in absenteeism rates attributed to stress and burnout, further straining the economy.
International Best Practices Regarding Overwork
Japan’s “Karoshi” Laws:
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- In response to “Karoshi” (death by overwork), Japan enacted regulations mandating that employees do not exceed 45 hours of overtime per month, with mechanisms for reporting overwork.
France’s “Right to Disconnect”:
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- Implemented in 2017, this law allows workers to disconnect from work-related communications outside office hours, fostering a better work-life balance.
Germany’s Work-Life Balance:
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- German companies, particularly in tech and manufacturing, emphasize shorter working hours and strict overtime regulations, leading to higher productivity without excessive hours.
Nordic Model:
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- Scandinavian countries like Denmark and Sweden prioritize shorter working hours and flexible work policies, resulting in improved worker welfare, productivity, and job satisfaction.
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Way Forward
- Revising Legal Framework: India’s labour laws should be updated to impose clear working hour limits across all sectors, including white-collar and gig workers, along with robust overtime regulations.
- Cultural Shift in Corporations: Companies should cultivate a culture that prioritizes productivity over long hours, recognizing and rewarding employee well-being and implementing flexible work hours.
- Government Intervention: Policies mandating annual leave, capping weekly working hours, and requiring breaks for employees in high-stress sectors should be introduced to protect worker rights.
- Corporate Responsibility Initiatives: Businesses should invest in employee welfare programs, including mental health support and wellness initiatives, to combat the challenges posed by overwork.
- Utilizing Technology for Work Management: Implementing time management tools can help organizations monitor workloads, ensuring employees are not overburdened.
- Promoting Work-Life Balance: Both employers and employees must actively work towards maintaining a healthy work-life balance, with employers recognizing signs of overwork and redistributing tasks when necessary.
