PM Modi’s austerity appeal: Can your boss refuse work from home? Here’s what labour law says – India News

Speaking at public events in Vadodara and Telangana earlier this week, the Prime Minister urged businesses and citizens to adopt practices such as remote work, online meetings and video conferencing to help reduce fuel consumption and ease pressure on foreign exchange reserves amid ongoing instability in West Asia.

“The West Asia crisis is one of the worst in the decade; just as we overcame the COVID-19 pandemic, we will come out of this also,” PM Modi said.

He also appealed to citizens to minimise unnecessary fuel usage, rely more on public transport and electric vehicles, avoid avoidable foreign travel and defer non-essential gold purchases in an effort to conserve foreign exchange.

The comments have sparked fresh discussions among employees and employers alike, especially at a time when many companies have aggressively pushed workers back to offices after winding down pandemic-era hybrid policies.

But despite the Prime Minister’s appeal, legal experts say Indian employees still do not possess a blanket statutory right to work from home.

No universal legal right to work remotely

Currently, India does not have a dedicated law granting employees an enforceable legal right to remote work. For most private-sector employees, office attendance and workplace location remain governed primarily through employment contracts, company HR policies and state-level labour laws under various Shops and Establishments Acts.

This means employers still retain broad discretion in deciding whether employees should work remotely, follow hybrid models or return fully to office-based operations.

Speaking exclusively to Financial Express Online, Indian educationist, lawyer and women’s rights activist Pramila Nesargi said the practicality of work-from-home depends heavily on the nature of the job.

“There are some works that can be done exclusively from home. If a foreign client holds a meeting online, that can be attended from home and there is no reason the employee must reach the office and then attend the call. These things can be informed to the office,” she said.

Nesargi added that India’s legal framework around hybrid work culture remains largely undefined. “With regard to work-from-home or hybrid work culture, the law has not been amended. Depending upon the nature of the work, the employee or employer can take a call if work from home can be implemented,” she explained.

“Some works related to politics or governance cannot be done from home. For that we have to go to the office. Corporate companies can give work-from-home permission based on the nature of the work,” she further added.

Pandemic-era remote work was backed by emergency powers

During the COVID-19 pandemic, governments across India invoked emergency legal provisions to mandate work-from-home wherever feasible. The Centre relied on the COVID-19 pandemic-era provisions under the Disaster Management Act, 2005, the Epidemic Diseases Act, 1897 and various state disaster-management rules to direct offices and businesses to operate remotely.

The Union Ministry of Home Affairs had also issued binding operational guidelines requiring companies to minimise physical attendance during lockdowns and containment phases.

However, legal experts point out that those measures were temporary emergency interventions rather than permanent labour rights.

Once the pandemic restrictions were lifted, companies regained the authority to decide workplace structures independently.

What the new labour codes say

The new India’s labour codes, which are yet to be fully implemented nationwide, do formally recognise concepts such as remote work and hybrid employment arrangements for the first time.

But even these provisions stop short of granting employees an automatic legal entitlement to work from home. Instead, such arrangements are largely based on “mutual agreement” between employer and employee.

For most white-collar professionals, workplace conditions continue to fall under state-specific Shops and Establishments Acts in states such as Karnataka, Maharashtra and Delhi. These laws regulate working hours, leave, overtime and welfare provisions, but they do not compel employers to offer remote work.

Limited legal exceptions exist

However, there are a few limited situations where employers may be expected to consider flexible working arrangements. Under the Rights of Persons with Disabilities Act, 2016, employers are required to provide reasonable accommodation for employees with disabilities where feasible.

Similarly, the Maternity Benefit Act, 1961 permits work-from-home arrangements for women after childbirth if the nature of the job allows it.

Even in such cases, though, work-from-home is not automatic and typically depends on agreement between both parties.

Nesargi also highlighted how flexible work models could especially benefit women employees. “Sometimes women need work from home because of health issues. If the reasons are explained properly to the company, they may consider it. It can also help women’s safety, especially for women working late hours who have to travel home alone,” she said.

Could governments mandate WFH again?

The Indian Express reported that legal experts say governments could once again invoke emergency powers to encourage or mandate remote work for sectors capable of operating online if fuel shortages, transportation disruptions, or broader energy concerns worsen significantly.

Such measures could potentially be introduced under disaster management or emergency-response frameworks, much like during the pandemic.

For now, PM Modi’s appeal remains advisory rather than legally binding. That means companies are free to decide whether to adopt work-from-home practices even as rising fuel costs, geopolitical instability and economic uncertainty once again push remote work back into the national conversation.