Taking a look at Karnataka’s latest notification on 24x7 operation of establishments

By way of a notification dated 2 January 2021 (Notification), the Labour Department, Government of Karnataka, has permitted all shops and commercial establishments employing 10 or more persons to remain open for all days of the week throughout the year for a period of 3 years from the date of publication of the Notification in the Official Gazette*. The move comes after the state government’s imposition of night curfew in view of the spread of the new variant of SARS-CoV-2 and its subsequent withdrawal in the wake of widespread criticism.

It may be noted that the notification is not exactly a new development. Through its Official Gazette issued on 14 November 2019, the state government had come up with a similar notification (Previous Notification) allowing shops and commercial establishments employing 10 or more persons to operate on a 24x7 basis for a period of 3 years with effect from 14 November 2019, subject to compliance with certain conditions.

Important Provisions of the Notification

Like the Previous Notification, the Notification makes the facility of 24x7 operation of establishments subject to certain conditions. These conditions are similar to the ones set out in the Previous Notification with only a few variations. We discuss and analyse these conditions below.

It may be noted that the Notification has been issued in exercise of the powers of the state government under the Karnataka S&E Act. The Notification may, therefore, not be relevant as regards persons occupying positions of management or those engaged in preparatory or complementary work, who have been kept out of the purview of the Karnataka S&E Act. 

Comments

The flexibility to operate round the clock may be perceived as a move that may help employers tide over the mounting financial difficulties that arose against the backdrop of COVID-19-induced shutdown.

That said, it would have been better if the state government had taken note of the fact that the employees in several establishments are still working from home (and may even continue to do so going forward). An appropriate modification of or exemption from certain conditions set out in the Notification, including the requirement of display of notices (which could have been substituted with an electronic dissemination of notice among employees), would have helped in expressly recognizing the new normal, as has been done recently by the Central Government in the draft standing orders for the service sector released by it under the Industrial Relations Code, 2020.

Further, it is expected that the state government would provide clarity as regards the seemingly confusing requirement of ensuring a period of work of up to 50 hours in a continuous period of 3 months, as discussed above.

*The official e-gazette website of the state government had not displayed the Notification until the time this update was prepared.

• Anshul Prakash (Partner) and Deeksha Malik (Associate)

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