ARTICLE
1 May 2025

Labour Welfare In India's White-Collar Sector

AP
Alpha Partners

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The tragic death of a 26-year-old chartered accountant due to exhaustion and burnout has brought to the forefront critical questions about work-life balance in today's...
India Government, Public Sector

Introduction

The tragic death of a 26-year-old chartered accountant due to exhaustion and burnout has brought to the forefront critical questions about work-life balance in today's corporate environment. This young professional faced the challenges of excessively prolonged working hours, resulting in severe sleep deprivation, stress, and anxiety, ultimately leading to this heartbreaking incident. Such events highlight the urgent need for reforms in the corporate sector to safeguard employee well-being. As discussions around labour welfare gain momentum, it becomes imperative to address the systemic issues that contribute to burnout and advocate for a healthier workplace culture that prioritizes the mental and physical health of workers.

Legal Scope

In India, the Constitution guarantees every citizen the right to life and personal liberty, which includes the right to physical, mental, and emotional well-being. This principle is reflected in the labour laws formulated to safeguard the interests of workers in the country. However, most labour laws primarily focus on manufacturing and production establishments, as well as on employees earning below a certain pay grade. Each state has its own Shops and Establishments Act, which regulates service-oriented commercial establishments and sets thresholds for daily and weekly working hours. Unfortunately, in many states, firms engaged in financial and legal practices are exempt from these provisions. As a result, they operate under internal policies rather than the regulations outlined in the relevant Shops and Establishments Act, allowing them to set their own standards for employee working hours. This situation raises significant concerns about the well-being of individuals in these sectors, as the lack of statutory oversight can lead to poor work-life balance and an increased risk of burnout.

Read more at: https://legal.economictimes.indiatimes.com/news/industry/tragic-death-of-ca-sparks-calls-for-urgent work-life-balance-reforms/113740204

Shared Responsibility of Central and State Government

In India, labour welfare falls under the concurrent list of the Constitution, allowing both central and state governments to legislate and make decisions on this critical issue. This shared jurisdiction underscores the importance of labour welfare in promoting social justice and ensuring the well-being of working individuals across the country. The respective governments have the authority to investigate incidents that impact labour welfare and to implement necessary measures to address these issues effectively. This may include adjudicating complaints filed by employees or workers, amending relevant laws to fill gaps, strengthening penalties for non-compliance, and enhancing support systems such as health care, safety regulations, and skill development programs. By fostering a collaborative approach to labour welfare, governments can better respond to the evolving needs of the workforce and create a more equitable and sustainable working environment.

Proposed Right to Disconnect

A bill titled the Right to Disconnect Bill, 2018, was introduced in the Lok Sabha in 2018, emphasizing the need to respect employees' personal lives by recognizing their right to refrain from responding to employer calls and emails outside of work hours. The bill aims to establish the right to disconnect as a means of reducing stress and easing the tension between personal and professional life. Additionally, the proposed regulation includes provisions for the government to establish digital detox centers and provide counseling services to help citizens manage their use of digital communication tools. However, there has been little visibility regarding the bill since its introduction.

Conclusion

This tragic incident underscores the urgent need for labour reforms in the country with prime focus on employee well-being, particularly in the area of work-life balance. It is essential to implement measures that tackle the systemic causes of burnout and adapt the legal framework to include all sectors, especially those currently exempt from regulations. Both central and state governments must work together to foster a culture of labour welfare that promotes social justice, supports mental health, and establishes clear boundaries between work and personal life. As discussions around the Right to Disconnect Bill and similar initiatives advance, collaboration among policymakers, employers, and employees is crucial for creating a sustainable workplace that enhances productivity and promotes overall health.

Originally published 22 October 2024

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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