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:


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