Bengaluru: In order to increase the permissible daily working hours from nine to 10, the Karnataka government has put out a major change to the Karnataka Shops and Commercial Establishments Act, 1961. Additionally, the government plans to make it easier for small firms to comply with regulations and raise the acceptable overtime limits.
Despite being hailed as a change that benefits businesses, the action has rekindled discussions about work-life balance and labour rights.
If approved, this change would align Karnataka with a number of other Indian states that have already implemented 10-hour workdays after the Centre implemented four unified labour rules in 2019 and 2020.
Employment conditions in retail establishments, offices and service sector businesses throughout the state are governed by the Karnataka Shops and Commercial Establishments Act, 1961. At the moment, it has a nine-hour workday limit and little room for overtime. The suggested modification will:
- Allow daily working hours to be extended to 10, while ensuring weekly hours do not exceed 48.
- Cap total daily hours (including overtime) at 12.
- Increase the overtime limit from 50 hours to 144 hours per three-month period.
- Exempt businesses with fewer than 10 employees from the Act’s provisions.
Additionally, the amendment proposes to streamline procedures related to record maintenance and certifications, particularly for small and medium-sized establishments.
According to reports, the Karnataka government stated that the reforms are intended to “legitimise existing work patterns and enhance the ease of doing business.”
The amendment also suggests streamlining certification and record-keeping processes, especially for small and medium-sized businesses. The Karnataka government said the measures are meant to “legitimise existing work patterns and enhance the ease of doing business.”
Civil society organisations and labour unions are concerned about the proposal, despite the possible financial advantages. Critics argue that by prolonging existing lengthy workdays without guaranteeing proportionate wage adjustments, the amendment runs the risk of “legalising the exploitation” of workers.
According to a Karnataka State Trade Union Council representative, in practice, this could encourage wage theft, particularly in unregulated segments.
The Labour Department’s inadequate ability to effectively enforce the legislation is another major worry. Workers may be left susceptible due to a lack of staff and inadequate inspection procedures, particularly in small businesses that are exempt from the law.
States are now able to change working hour restrictions as a result of the Centre’s labour code reforms, especially the Occupational Safety, Health, and Working Conditions Code. Karnataka is now one of the states that is investigating or implementing 10-hour workdays, joining Gujarat, Maharashtra, Uttar Pradesh, Uttarakhand and Andhra Pradesh.
Actually, earlier this year, Andhra Pradesh gave its approval to a similar extension. Even though it was led by an opposition party, Chhattisgarh likewise made similar modifications, indicating widespread political support for labour regimes that were deregulated under the new regulations.
The Karnataka government stated that its suggested modification is not required. Weekly work limitations must still be followed by employers, and overtime must be paid in accordance with the law. However, as always, the details are where the problems lie.
It is anticipated that the law will be introduced during the upcoming legislative session. Karnataka’s decisions could have an impact on similar reforms throughout India as it balances labour welfare with pro-business policies.
