Applicability of Karnataka Shops and Commercial Establishments Act – 1961
The Shops and commercial Establishment Act is regulated by the Labor Department. The Act regulates all the shops and commercial establishments operating within the state. Shops means any premises where any trade or business is carried on or where services are rendered to customers and includes offices, storerooms, godowns, warehouses, whether in the same premises or otherwise, used in such connection with such trade or business, but does not include a commercial establishment or a shop attached to a factory.
Who should get registered under Shops & Establishment Act
- Every shops, commercial establishment within 30 days from starting the business shall submit application form to register the establishment.
- Registration certificate must be displayed on visible place inside the office premises.
- Registration certificate is valid for 5 years period. Before the expiry of the period, renewal application to be submitted for the next period.
Exemption from Registration under Karnataka Shops and Establishment Act– 1961
- Offices of, or under the central or state Government, or local authorities, except commercial undertaking.
- Any railway service, water transport service, postal, telegraph or telephone service, any system of public conservation or sanitation or any industry, or services like water, power, light to the public.
- Railway dining cars.
- Establishments for the treatment or care of the handicap or mentally unfit.
- Establishments of the food corporation of India.
- Offices of legal practitioners and medical practitioners in which not more than 3 persons are employed.
- Offices of banks
Working Hours as per Karnataka Shops and Establishment Act– 1961
- Business to be run during following hours.
- Bangalore city - 6 AM to 9 PM
- Other places in Karnataka - 8 AM to 8 PM
- Prohibitions and Exemptions in workplace
- No child, under 14 years shall be required or allowed to work in any establishment.
- No women shall be required or allowed to work whether as an employee or otherwise in any establishment after 8 pm. IT/BT organizations can get permission to allow women to work after 8 pm by submitting Form with necessary information.
Points to Note
- The organizations having weekly holiday exemption, after taking continuous service of 6 days from any employee, shall give 7th day as mandatory holiday for him. In special cases 7th day cannot be given as holiday, 11th day should be given as mandatory holiday.
- Salary shall be paid before 7th date of next month.
- Working period of any employee should not exceed 48 hours and 58 hours including extra working hours.
- 1 day per 20 days as earned leave and 1 day per 30 days as sick leave shall be calculated
- Any employee who has completed 180 days service to the establishment cannot be dismissed without prior notice.
- Annual return in Form U shall be submitted by 31st Jan for the year ending on 31st December.