Industry News | 6/25/2025
Karnataka's Proposal for 12-Hour Workdays Sparks Controversy in IT Sector
A proposal by the Karnataka government to extend daily work hours to 12 hours has faced significant backlash from employee unions in the state's IT sector. Critics argue that the change prioritizes corporate efficiency over worker well-being, raising concerns about job security, mental health, and work-life balance.
Karnataka's Proposal for Extended Work Hours
The Karnataka government's recent proposal to amend labor laws and extend daily work hours to a maximum of 12 hours has ignited a heated debate within the state's information technology sector. This move is intended to enhance operational flexibility for companies but has been met with strong opposition from employee unions.
Background of the Proposal
The proposed amendment to the Karnataka Shops and Commercial Establishments Act of 1961 seeks to increase the maximum daily working hours from the current limit of nine or ten hours (including overtime) to twelve. Proponents, including some industry leaders, argue that this change would allow companies to adopt a two-shift system instead of the current three, thereby improving operational efficiency and attracting more investment to the state.
The Federation of Karnataka Chambers of Commerce and Industries (FKCCI) has expressed support for the proposal, suggesting that longer working hours could boost productivity, which is vital for maintaining global competitiveness. The state's Labour Department has indicated that this push aligns with central government directives encouraging states to adopt national model labor codes.
Opposition from Employee Unions
In stark contrast, employee unions, particularly the Karnataka State IT/ITeS Employees Union (KITU), have condemned the proposal, labeling it as a form of "modern-day slavery." Union leaders argue that legalizing 12-hour shifts prioritizes corporate profits over the fundamental rights and welfare of employees. They express concerns that this change could lead to mass layoffs, potentially rendering a significant portion of the workforce redundant amid ongoing economic pressures and the rise of automation.
Health and Well-Being Concerns
The proposal has also intensified concerns regarding the mental and physical health of IT workers. KITU has highlighted alarming statistics, such as a report indicating that 90% of corporate employees under 25 experience anxiety, alongside recent incidents of employee suicides linked to work-related stress. Critics argue that extending work hours could exacerbate these issues, further deteriorating the work environment.
International studies have shown that workweeks exceeding 55 hours are associated with a higher risk of serious health issues, including stroke and heart disease. Research from Stanford University has demonstrated that productivity per hour declines significantly after a 50-hour workweek, suggesting that longer hours may not necessarily lead to increased efficiency.
Industry Perspectives
The role of major industry bodies adds complexity to the discussion. While the Karnataka government feels pressure from the IT sector to introduce more flexible labor laws, the National Association of Software and Services Companies (NASSCOM) has publicly opposed the idea of a 14-hour workday, which was previously suggested. NASSCOM has clarified its support for the standard 48-hour workweek, advocating for flexibility within that framework to standardize operations across states.
Conclusion
As the Karnataka government engages with stakeholders regarding this proposal, the future of the IT sector remains uncertain. This debate not only addresses the working conditions for millions in Bengaluru's tech hubs but also raises fundamental questions about the balance between economic growth and the rights of workers. The outcome could set a precedent for labor practices across India, influencing whether the corporate landscape moves towards a more humane approach to work or continues to embrace a culture of extended hours.