The Karnataka government’s proposal to amend labour laws for the IT, IT-enabled services (ITeS), and BPO sectors has drawn sharp criticism from employee unions and industry watchers alike. The draft amendment to the Karnataka Shops and Commercial Establishments Act would increase the workday limit from 10 to 12 hours, effectively allowing companies to shift from a three-shift model to a two-shift system.
While the state aims to boost operational efficiency through this shift, critics argue that it could lead to mass redundancies, especially for junior-level and contract workers already vulnerable due to widespread AI automation. The move comes amid growing anxiety in India’s tech sector, where global layoffs and shrinking job roles have already strained workforce morale.
Employee Unions Warn of Job Cuts and Mental Health Strain
The Karnataka State IT/ITeS Employees Union (KITU), which attended the stakeholder meeting on the amendment, voiced strong opposition. Citing data from the State Emotional Wellbeing Report 2024—which revealed that 90% of Indian corporate workers under 25 struggle with anxiety—union representatives warned that extended work hours could lead to deteriorating employee well-being.
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Instances of work-related stress, including a recent suicide by a Bengaluru-based software engineer, were highlighted by KITU leaders as evidence of the human cost such changes could impose. The union has announced plans for protests and awareness campaigns across major tech parks in Bengaluru to resist the implementation of the proposed law.
Pushback Against Central Government Pressure
The labour department claims the proposed amendment aligns with broader national directives. Other states such as Maharashtra, Gujarat, and Uttar Pradesh have already revised work hour regulations. However, employee advocates argue that Karnataka, a tech hub with a unique demographic and innovation-driven economy, must tailor its labour policies to its context rather than follow a blanket national directive.
With growing discontent among tech professionals, the state now finds itself at a crossroads—balancing efficiency ambitions with the mounting pressure to protect worker rights, mental health, and job stability.
