Need Sql query output like this format

This is basically an unpivot query. Because of the time fields, this version chooses to do it explicitly (using cross join and case) rather than using unpivot:

select t.*
from (select h.empid,
             (case when n = 0 then Monday
                   when n = 1 then Tuesday
                   when n = 2 then Wednesday
                   when n = 3 then Thursday
                   when n = 4 then Friday
                   when n = 5 then Saturday
                   when n = 6 then Sunday
              end) as hours,
             (startdate + n) as StartDate,
             (startdate + n) as EndDate
      from hours h join
           (select 0 as n union all
            select 1 union all
            select 2 union all
            select 3 union all
            select 4 union all
            select 5 union all
            select 6
           ) n
     ) t
where hours > 0;

You can see the SQLFiddle here. And there is no problem running this on larger amounts of data.

This should get you started:

declare @Hours as Table ( EmpId Int, Monday Time, Tuesday Time, Wednesday Time,
  Thursday Time, Friday Time, Saturday Time, Sunday Time, StartDate Date, EndDate Date );
insert into @Hours
  ( EmpId, Monday, Tuesday, Wednesday, Thursday, Friday, Saturday, Sunday, StartDate, EndDate )
  values
  ( 1, '08:00', '08:12', '00:00', '04:00', '00:00', '03:00', '00:00', '20130510', '20130516' );
select * from @Hours;

with Week as (
  -- Build a table of all of the dates in the work week.
  select StartDate as WorkDate, EndDate
    from @Hours
  union all
  select DateAdd( day, 1, WorkDate ), EndDate
    from Week
    where WorkDate < EndDate )
  -- Output the result.
  select EmpId,
    case DatePart( weekday, W.WorkDate )
      when 1 then H.Monday
      when 2 then H.Tuesday
      when 3 then H.Wednesday
      when 4 then H.Thursday
      when 5 then H.Friday
      when 6 then H.Saturday
      when 7 then H.Sunday
      end as Hours,
    WorkDate as StartDate, WorkDate as EndDate,
    DatePart( weekday, W.WorkDate ) as DayOfWeek
    from Week as W inner join
      @Hours as H on H.StartDate <= W.WorkDate and W.WorkDate <= H.EndDate;

with Week as (
  -- Build a table of all of the dates in the work week.
  select StartDate as WorkDate, EndDate
    from @Hours
  union all
  select DateAdd( day, 1, WorkDate ), EndDate
    from Week
    where WorkDate < EndDate ),
  DaysHours as (
  -- Build a table of the hours assigned to each date.
  select EmpId,
    case DatePart( weekday, W.WorkDate )
      when 1 then H.Monday
      when 2 then H.Tuesday
      when 3 then H.Wednesday
      when 4 then H.Thursday
      when 5 then H.Friday
      when 6 then H.Saturday
      when 7 then H.Sunday
      end as Hours,
    WorkDate as StartDate, WorkDate as EndDate
    from Week as W inner join
      @Hours as H on H.StartDate <= W.WorkDate and W.WorkDate <= H.EndDate )
  -- Output the non-zero hours.
  select EmpId, Hours, StartDate, EndDate
    from DaysHours
    where Hours <> Cast( '00:00' as Time );

This works for a single row, but you will need to make some changes if your dataset grows.