Changes proposed to the Shops and Commercial Establishments Act in Karnataka

2 July 2025 1 min read

By Sonakshi Das

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.  

More to explore

Employment Rights Act Preparing for change: Response to consultation on improving access to flexible working

Employment Rights Act Preparing for change: Response to consultation on improving access to flexible working

Government confirms new procedures for handling flexible working requests, with additional employer obligations due from autumn 2027.

Brazil advances 40-hour workweek reform and two-day rest entitlement (update)

Brazil advances 40-hour workweek reform and two-day rest entitlement (update)

Brazil advances 40-hour work week reform with two paid rest days, no salary cut, and fast-tracked Senate review underway

Germany prepares shift to weekly working time limits (update)

Germany prepares shift to weekly working time limits (update)

A draft bill on more flexible working time rules has been announced for June, with Germany considering a shift from a daily to a weekly maximum working time.

Flexible working hours initiative launched to ease traffic

Flexible working hours initiative launched to ease traffic

Saudi Arabia introduces flexible working hours in Riyadh business hubs to ease congestion and improve commuting and quality of life.

Employment Rights Act: Preparing for change: Consultation on guaranteed hours contracts for zero and low hours workers

Employment Rights Act: Preparing for change: Consultation on guaranteed hours contracts for zero and low hours workers

UK consults on guaranteed hours rights for low-hours workers, with key details on thresholds, reference periods and exemptions still open.

Mexico reduces weekly working hours and introduces overtime caps and tracking obligations

Mexico reduces weekly working hours and introduces overtime caps and tracking obligations

Mexico reforms working time rules, reducing weekly hours gradually, capping overtime, and introducing mandatory electronic time tracking.

Questions? Launch AI Assist