The Karnataka government is set to amend its Shops and Commercial Establishments Act of 1961 to extend the maximum daily working hours from nine to ten, allow up to 12-hour workdays including overtime, and raise the three-month overtime limit from 50 to 144 hours
Key Changes at a Glance:
SME exemption: Businesses with fewer than 10 employees may be exempt from certain compliance and record-keeping under the revised draft.
Regular workday increase: 9 ➝ 10 hours
Overtime cap: Up to 12 hours daily
Quarterly overtime limit: 50 ➝ 144 hours
Government Rationale
The state claims these changes are designed to legitimise existing work patterns and align with central labour codes, arguing that other states like Gujarat, Uttar Pradesh, and Andhra Pradesh have already adopted similar rules to boost local business operations.
Union Backlash and Worker Concerns
However, the proposal has met resistance from labour unions—most notably CITU and KITU—who claim it will legalise excessive working hours, erode work-life balance, and pave the way for mass layoffs, especially in the retail and IT/ITeS sectors.
CITU estimates potential job losses of 450,000–680,000 and a sharp rise in youth unemployment .
KITU warns the move may eliminate a third of IT/ITeS jobs by consolidating shifts and punishing productivity.
Trade unions add that longer hours could exacerbate mental health challenges, with younger employees reporting rising anxiety in high-pressure work environments.
Government Response
Karnataka’s Labour Minister Santosh Lad clarified that total weekly hours (capped at 48) will remain unchanged, positioning the changes as flexible and business-friendly. Ongoing consultations with stakeholders are underway, with no final decision yet taken.
What’s Next?
The proposed amendments are expected to be tabled during the upcoming legislative session. While the state pledges improved ease of doing business, unions and experts caution against normalising prolonged work hours without safeguards—fearing this could compromise worker health, job security, and morale.