Unions raise concerns about overtime, definition of factory in draft code published by Karnataka govt

In the draft rules of the Occupational Safety, Health and Working Conditions Regulations published by the Karnataka government on January 27, daily working hours were limited to 10.5 hours and it was stated that a worker cannot be employed more than 48 hours a week.

It also states that the working day may be extended by up to 12 hours for certain factories or categories of workers if notified by the State Government.

This appears to be in line with the amendment proposed in June 2025 to the Karnataka Shops and Commercial Establishments Act, 1961. The proposal subsequently proposed increasing daily working hours from the current nine hours to 10 and limiting total working hours, including overtime, to 12 hours per day, prompting serious criticism from unions.

Rest and overtime

According to the rules, in case of overtime work, the worker will be entitled to compensation equal to twice his normal wage.

While the draft rules limit overtime to a maximum of 144 hours in a quarter, that figure is almost three times the current limit. As per the Karnataka Shops and Commercial Establishments Act, 1961, the total overtime worked must not exceed 50 hours in any continuous three-month period.

Definition of Factory

The rules incorporate 13 Acts, including the Factories Act, 1948, Mines Act, 1952 and the Inter-State Migrant Workers Act, 1979, among others.

Satyanand Mukund, State Secretary of the All India Trade Union Congress (AITUC), expressed concern over the definition of factory in the Act.

“The threshold number of workers for the factory has been increased from 10 to 20. This will encourage subcontracting of work from larger factories to smaller factories where the issue of overtime pay will not arise. These will essentially become sweatshops with poor working conditions,” he said.

Mr Mukund also expressed concern that the Inspector and Facilitator regime prioritized advisory compliance over strict enforcement, which could weaken deterrence against violations.

migrant workers

Payal Gaikwad, an employment lawyer, pointed out that the draft rules do not require the employer to pay relocation allowance to inter-State migrant workers, unlike the Inter-State Migrant Workers (Regulation of Employment and Conditions of Service) Act, 1979.

“When inter-state migration is much more common and expensive, the Karnataka OHS Rules, 2026, do not provide for any such allowance… While the earlier labor laws treated migration as a situation requiring compensation, the draft rules relegate inter-State migration to an administrative category,” he said.

dangerous work

According to Ms. Gaikwad, while the draft rules retain detailed security provisions, they increasingly rely on audit-based mechanisms and internal compliance systems.

“The shift from frequent inspection to periodic verification marks a change in regulatory philosophy, moving from State vigilance to managed self-compliance. This raises questions about whether the intensity of surveillance, particularly in smaller but high-risk units, no longer matches the severity of risk,” he said.

While the draft rules require principal employers to be identified in official records and impose a direct obligation on them to provide essential workplace facilities to which contract workers are deployed, Ms. Gaikwad noted that contractors’ failures are addressed primarily through license conditions, deposits, administrative investigations and suspension or revocation of licences, rather than the principal employer’s immediate return responsibility.

Generally positive

However, Prashanth BK, head of CCI Legal Department, felt that the OSH Rules and Rules could bring positive changes. He stated that the rules require responsibility from both the employer and the employee.

“From the employer’s perspective, the penalties imposed for non-compliance with the Law have increased significantly. At the same time, the duties of employees are also listed and penalties for violating them are imposed. In this way, both parties are on their guard,” he said.

Mr. Prashanth also welcomed the introduction of free medical examinations for workers above 40 years of age and the issuance of a common license through consolidation of multiple Acts.

“If the license is not issued within the period, it is considered accepted. Previously, it took months to obtain a license. This situation also holds administrative officials responsible,” he said.

It was published – 30 January 2026 09:45 IST