Karnataka moves to extend work hours: Proposes a 10-hour day in labour law revamp

The Karnataka government has proposed a significant amendment to the Karnataka Shops and Commercial Establishments Act, 1961, aiming to extend the legal daily working hours from nine to 10. Alongside this, the government intends to raise the permissible overtime limits and simplify record-keeping and compliance for small businesses. While the move has been touted as a business-friendly reform, it has reignited debates around labour rights and work-life balance.

This amendment, if passed, would bring Karnataka in line with several other Indian states that have already adopted 10-hour workdays following the Centre’s rollout of four consolidated labour codes between 2019 and 2020.

Understanding the Act and the Proposed Changes

The Karnataka Shops and Commercial Establishments Act, 1961 governs the conditions of employment in retail outlets, offices, and service sector firms across the state. It currently limits daily working hours to nine, with restricted scope for overtime. The proposed amendment 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 The Hindu, the Karnataka government stated that the reforms are intended to “legitimise existing work patterns and enhance the ease of doing business.”

Despite the potential business benefits, the proposal has sparked concern from labour unions and civil society groups. Critics claim the amendment risks “legalising the exploitation” of workers by extending already long workdays without necessarily ensuring proportional wage adjustments.

“There’s no clarity in the amendment about increasing wages in line with the extended hours. In practice, this could encourage wage theft, particularly in unregulated segments,” said a spokesperson from the Karnataka State Trade Union Council, reported The News Minute. 

Another key concern is the limited capacity of the Labour Department to enforce the law effectively. Staffing shortages and weak inspection mechanisms may leave workers vulnerable, especially in small establishments that fall outside the law’s purview.

The Centre’s labour code reforms, particularly the Occupational Safety, Health and Working Conditions Code, have opened the door for states to amend working hour limits. Karnataka now joins the likes of Gujarat, Maharashtra, Uttar Pradesh, Uttarakhand, and Andhra Pradesh in exploring or implementing 10-hour workdays.

Andhra Pradesh, in fact, approved a similar extension earlier this year. Chhattisgarh—while governed by an opposition party—also adopted aligned changes, signalling broad political backing for deregulated labour regimes under the new codes.

What Lies Ahead?

The Karnataka government maintains that its proposed amendment is not mandatory. Employers must still adhere to weekly work limits, and workers must be compensated for overtime as per law. But the devil, as always, lies in the details—and more crucially, in implementation.

The bill is expected to be tabled in the next legislative session. As Karnataka walks the tightrope between pro-business policy and labour welfare, its choices could influence similar reforms across India.

Other than the Karnataka government, Genpact has also recently implemented a 10-hour workday model for select teams to align with global client demands and improve operational efficiency—reflecting a broader industry shift towards longer and more flexible working hours.