Karnataka's proposed 10-hour work shifts: What you need to know
What is Karnataka Shops and Commercial Establishment Act, 1961?
The Karnataka Shops and Commercial Establishment Act, 1961 is a law that governs working hours and labour conditions in shops and commercial establishments in the State. It sets the legal framework for how long employees can work, and how overtime, records, and compliance are handled.
What are the key amendments?
The new amendment aims to simplify procedures like record-keeping and certification, especially for smaller establishments. Supporters of the move believe it will enhance the ease of doing business and legitimise working-hour patterns that are already in practice.
The work hours can be increased to 10 hours a day and 48 hours a week. The total number of hours of work, including overtime, shouldn't be more than 12 hours a day.
An employee can work overtime for 144 hours in a period of three continuous months. At present, it is 50 hours. Firms with employees fewer than 10 are exempted from this Act.
Who will benefit from the amendment?
The biggest beneficiaries of the proposed amendment to this Act will be companies in the Information Technology and Information Technology-Enabled Services (IT & ITES) sectors. These include businesses offering software services, backend IT operations, hardware sales, and similar services. These companies are expected to benefit from the formal extension of working hours and the easing of compliance burdens.
What are the concerns?
Trade unions argue that the move legalises existing violations and could lead to exploitation of workers, including wage theft, due to poor enforcement mechanisms and staff shortages in the Labour Department.
The law is ambiguous on increasing the wage proportional to the increased work hours.
Which other states have 10-hour work shifts?
After the Union government passed four Labour Codes in 2019 and 2020 that allowed increasing the work hours, the BJP-ruled Chhattisgarh, Gujarat, Maharashtra, Uttar Pradesh, and Uttarakhand have passed legislations. Recently, Andhra Pradesh Cabinet approved increasing work hours to 10 per day.
(With inputs from Sharath Srivatsa)
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