Changes proposed to the Shops and Commercial Establishments Act in Karnataka

At a glance

• The Karnataka Labour Department is proposing changes to the Shops and Commercial Establishments Act.
• Changes will have an impact on working hours and overtime rules.
• The proposed changes are currently under review. 

We would like to express gratitude to JSA for their contribution on this publication.

The Karnataka Labour Department is proposing changes to the Shops and Commercial Establishments Act. These changes aim to extend working hours and adjust overtime rules. This is in response to directives from the Union government and similar changes in other states. 

Key changes include:

• An increase in working hours from nine to 10 hours per day.
• Total working hours, including overtime, to be capped at 12 hours per day (up from ten).
• The overtime limit is proposed to increase from 50 to 144 hours over a three-month period.
• Shops and commercial establishments with fewer than ten employees will have fewer reporting requirements.

The Karnataka State IT/ITeS Employees Union opposes the changes, arguing they could harm nearly two million employees. Currently, the proposed changes are under review.