The Karnataka government has introduced a significant labour reform proposal aiming to increase the permissible daily work hours and overtime limits under state law. These changes are part of an initiative to align state regulations with broader national labour policies.
According to Deccan Herald, the Karnataka government is contemplating major reforms to its labour laws, which may include extending the daily working hours in select sectors, including information technology, from the current 10 hours to 12 hours. This proposal has sparked opposition from various trade unions.
According to the draft proposal, Karnataka intends to amend the Karnataka Shops and Commercial Establishments Act, 1961, and its supplementary Rules of 1963, the report said. The daily work limit may soon rise from the existing 9 hours to 10 hours. Simultaneously, the permitted overtime could extend to a maximum of 12 hours per day.
Currently, employees are allowed a maximum of 50 hours of overtime in a 3-month span. The draft revision would raise this cap to 144 hours per quarter, nearly tripling the current limit.
The Karnataka Labour Department has cited alignment with the central government framework as a critical motivation. With the rollout of model labour codes across India, the Centre has encouraged states to update policies in a unified direction. Karnataka aims to keep pace with other states that have already implemented such measures, including Gujarat, Maharashtra, Uttar Pradesh, Uttarakhand, and Chhattisgarh.
Labour officials argue that the reform will help enhance productivity and create a more flexible work environment, in line with global standards. They also note that this initiative will support industries that require seasonal or project-based work patterns.
In a parallel reform, the Karnataka government aims to amend Rule 24 of the 1963 Rules, which mandates record-keeping and inspections. Establishments employing fewer than 10 people could be exempted from maintaining various registers and records traditionally required during labour inspections.
This aligns with central recommendations to exempt units with fewer than 20 employees from stringent compliance obligations. It aims to encourage ease of doing business, particularly for startups and family-run micro enterprises.
Read More: One Nation, One Time: India Takes a Step Towards Uniform Time Across the Country!
The Karnataka government’s proposal to increase work hours and overtime limits presents a mixed picture. While it appeals to business owners and aligns with national reform agendas, it has triggered concerns among labour unions and civil society. As consultations proceed, it remains vital that the state ensures a balance between economic growth and worker welfare.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 20, 2025, 1:26 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates