Karnataka’s new labour law permitting 12-hour shifts without equal pay has caused nationwide criticism. While opponents call it exploitative for workers, the state claims it aims to attract investments and increase overall industrial productivity.
The Karnataka government is exploring important reforms to its labour laws that could extend the maximum workday to 10 hours and raise the cap on overtime, prompting concerns among worker unions and policy experts.
As per the draft proposals, the state intends to amend the Karnataka Shops and Commercial Establishments Act of 1961 and its accompanying Rules from 1963.
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Currently, the law limits daily work hours to nine and caps overtime at 10 hours.
However, the proposed changes would increase the daily work limit to 10 hours, allowing for up to 12 hours of overtime per day. Notably, the overtime limit over three months could rise from 50 to 144 hours.
The Labour Department has defended these changes by referencing central government directives that encourage states to align with national model labour codes.
Officials pointed out that several states, including Maharashtra, Gujarat, Uttar Pradesh, Chhattisgarh, and Uttarakhand, have already adopted similar measures, setting a precedent for Karnataka.
In addition to modifying work hours, the state is also considering easing regulatory requirements for smaller businesses. Proposed amendments to Rule 24 of the 1963 Rules would exempt establishments with fewer than 10 employees from maintaining certain records and compliance documentation typically required during labour inspections.
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This exemption is also aligned with central guidance recommending that units with fewer than 20 employees be exempt.
Industry groups have expressed support for the proposals. MG Balakrishna, president of the Federation of Karnataka Chambers of Commerce and Industries (FKCCI), praised the reforms as business-friendly and indicative of a younger, more dynamic workforce.
Emphasizing that relaxing compliance norms for smaller businesses would help reduce bureaucratic hurdles, he said,
“Longer hours can drive productivity, which is critical for staying competitive globally,”
However, these proposals have faced strong opposition from labour unions. Maitreyi Krishnan, state general secretary of the All India Central Council of Trade Unions (AICCTU), labeled the proposals as “unconstitutional” and accused the government of neglecting the Directive Principles of State Policy.
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Krishnan stated,
“It’s ironic that Karnataka is using states like Uttar Pradesh and Chhattisgarh as benchmarks,”
“These are the very states whose workers are migrating to Karnataka in search of better conditions. If we follow their lead, we risk driving our own workforce away.”
The Labour Department is set to conduct consultations with stakeholders, including government officials, business leaders, and union representatives, on Wednesday to discuss the proposed changes and potentially finalize the draft.