Bengaluru, June 20: The Karnataka government has stirred strong reactions from trade unions with its proposal to amend the Karnataka Shops and Commercial Establishment Act, 1961. The proposed changes aim to increase the daily working hours from the current 9 to 10, and the total permissible working hours — including overtime — to 12 per day, up from the current 10. Weekly work limits would remain capped at 48 hours. The draft amendment has been circulated by the Labour Department among stakeholders for feedback.

Significantly, the government also proposes to raise the overtime ceiling from 50 hours to 144 hours in any continuous three-month period. The amendment follows directions from the Union government urging States to consider modifying work hour laws in alignment with national labor reform goals. The Centre highlighted that BJP-ruled states such as Chhattisgarh, Gujarat, Maharashtra, Uttar Pradesh, and Uttarakhand have already adopted similar measures. Andhra Pradesh Government Increases Maximum Working Hours From 9 to 10 as Part of Ease of Doing Business and Attracting Investments.

The Act currently applies to a wide range of commercial entities, including shops, restaurants, pubs, bars, hotels, offices, and IT/ITES companies. One of the most contentious proposals in the draft is the exclusion of shops and establishments employing fewer than 10 workers from the Act’s jurisdiction, thereby exempting them from the requirement to file annual returns and comply with other labor regulations. Which Country Has the Longest and Shortest Working Hours for Employees?

A stakeholders’ meeting has been scheduled for Wednesday by the Labour Department to finalise the amendments to both the 1961 Act and the Karnataka Shops and Commercial Establishments Rules, 1963. Trade unions argue the move would lead to worker exploitation under the guise of reform and are demanding the withdrawal of the proposal. The debate now centers around balancing ease of doing business with worker welfare in one of India’s key industrial and IT states.

(The above story first appeared on LatestLY on Jun 20, 2025 08:20 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).