Wed Jun 18 01:45:00 UTC 2025: ## Karnataka Considers Longer Hours for IT Sector, Sparking Controversy

**Bengaluru – June 18, 2025** – The Karnataka government is considering amending the Karnataka Shops and Commercial Establishment Act, 1961, a move that could significantly impact the Information Technology and Information Technology-Enabled Services (IT & ITES) sectors. The proposed changes include increasing daily working hours from nine to ten and allowing for more overtime.

While proponents argue the amendment will boost “ease of doing business,” particularly for smaller establishments, trade unions are strongly opposing the move, labeling it a legitimization of existing labor violations.

A meeting is scheduled for Wednesday to discuss the proposals. Meenakshi Sundaram, general secretary of CITU, Karnataka, argues the amendment will simply “legalise the illegal act” of companies already pushing employees to work longer hours. Unions also accuse the central government of pressuring the state to adopt these measures, sacrificing worker rights for corporate gain. They also expressed concern that increased hours, coupled with simplified record keeping, could lead to “wage theft” due to inadequate monitoring by the understaffed Labour Department.

AITUC State secretary M. Satyananda echoes these concerns, warning that the changes would reduce rest periods for workers and create loopholes for employers to avoid paying for overtime.

However, B.C. Prabhakar, president of the Karnataka Employers’ Association, sees the proposed changes as progressive. He emphasized that exempting establishments with fewer than 10 employees from submitting documents would reduce bureaucratic hurdles. Prabhakar pointed to similar exemptions in other states like Andhra Pradesh and Haryana. He stated the move “legitimises what is already going on.”

The debate highlights the ongoing tension between fostering economic growth and protecting workers’ rights in Karnataka’s thriving IT sector.

Read More