The Karnataka government has introduced a proposal to extend the maximum daily work hours from 10 to 12 hours for employees in the IT, IT-enabled services (ITeS), BPO, retail, hospitality, and other key service sectors. This move is part of the government’s effort to amend existing labor laws to enhance operational flexibility for businesses in the state.
What the Proposal Suggests
Under the proposed amendment to the Karnataka Shops and Commercial Establishments Act, 1961, the following changes are being considered:
- Extension of daily working hours: Increasing the allowable limit from 10 hours per day to 12 hours, including overtime.
- Increase in overtime limits: The proposal includes raising the quarterly cap on overtime hours from 50 to 144 hours.
- Sector-wide impact: The change will primarily affect companies operating in IT, BPO, retail, malls, and hospitality—especially those with large employee bases and round-the-clock operations.
Government’s Intent
The government believes the move could improve business productivity, support night shifts, and offer greater workforce flexibility for companies handling global operations. Karnataka, being one of the country’s largest IT hubs, aims to align its labor structure with global service delivery models.
Officials have stated that the new framework will be introduced with safeguards to ensure employee well-being, such as:
- Weekly work hour limits (not exceeding 48 hours)
- Compulsory weekly off
- Mandatory record-keeping by employers
- Worker consent for overtime shifts
Reactions from Industry and Employees
While some business groups see this as a step toward improving ease of doing business in Karnataka, the proposal has triggered strong opposition from employee unions, especially in the tech and service sectors.
Concerns raised include:
- Potential exploitation of workers through extended working hours
- Increased stress and mental health issues due to reduced work-life balance
- Possibility of job cuts if companies shift from three shifts to two longer ones
Employee groups argue that while flexibility benefits employers, it must not come at the cost of employee well-being.
Mental Health and Productivity Debate
The debate around extended working hours is not new. Several studies have shown that prolonged workdays, especially in high-pressure sectors like IT, can lead to long-term mental and physical health challenges. The discussion now centers on how to strike a balance between productivity and employee rights in a digital-first economy.
What’s Next?
The Karnataka government has indicated that the proposal is still under review and will undergo consultation with stakeholders, including industry leaders, employee unions, and legal experts before final implementation.
Conclusion
Karnataka’s move to consider a 12-hour workday marks a significant shift in how the future of work is being shaped in India’s most tech-forward state. As the proposal develops, it will be crucial to monitor how the government balances its goals of economic growth with the need to protect its skilled workforce.
