ekarmika: New Mandatory Karnataka Shops and Establishment Act, 1962 : Update 2019

The obligatory registration of the Karnataka Shops and Establishment Act, 1962 for companies, persons, and legal entities who are setting up a shop or commercial establishment in the stat,e and these act-oriented documents are considered essential for

• employers
• their human resources (HR) departments

EE-Karmikais a facility for Registration and Renewal of Establishments under the Karnataka Shops and Commercial Establishments Act, 1961, which is one of the State Labour Laws and Rules being enforced by the Department of Labour, Karnataka.
The Karnataka Shops and Establishment Act prohibits the employment of a child at any establishment. A child is any person who has not completed fourteen years of age. Additionally, young persons and women cannot be required or allowed to work, whether as employees or otherwise, in any establishment during the night.
The Karnataka Shops and Establishment Act was introduced to regulate the hours of work, annual leave with wages, wages and compensation, employment of women and children, and other aspects of shops or commercial establishments.
Under the purview of the Act, a Shop and Establishment License is compulsory for all business entities if a person has establishaany business enttythey arey ares required to obtain a shop and establishment linesss within 30 dacommencingntt of business.

It regulates establishments in the following commercial places

1. Employees,
2. Annual leaves for wage calculation,
3. Wages and compensation,
4. Women and Children Employment,
5. Other perspectives

State businesses developing children’s layers must document this key statutory requirement. Any established firm must ensure that its HR policies and handbook are compliant. The following are included under commercial establishments:

• Commercial,
• Trading,
• Banking,
• Insurance entity,
• An establishment,
• Administrative services

ekarmika: The employers working in departments like

1. Office work
2. Refreshment house – a hotel, restaurant, a cafe or any others.
3. Public Amusement – a theatre or any other place of ,entertaiother

ekarmika: The Act Definition

“The Act defines shops as a place where any trade or business is carried on or services are rendered to customers, including offices, storerooms, and godowns (warehouses). The term does not include shops attached to a factory within the scope of India’s Factories Act, 1948.”

ekarmika: Licensed Business

• Office includes – Federal, state government, or local authority
• Public Sanitation Industries – Entity providing power, light, or water to the public, or any water transport service, postal, railway, survey, telephone,e or telegraph service, any system of conveyance;
• Dining cars in Railways
• Care Establishments or treatment of the mentally unfit, infirm or the sick;
• Establishments from the Food Corporation of India.
• The offices of legal and medical practitioners (offering in case have not employed more than three persons)
• A banking company’scasesthat case that ices
• Persons who are working in the positions of management in any firm;
• Persons working on inherently intermittent positions (care takers, drivers, canvassers, or watch and ward staff)
• Complemecaretakerseparatory work persons engaged directly (clearing and forwarding clerks responsible,e for the dispatch of the goods)

 

Registration Process:

Mandatory for all new shops or commercial establishments in Karnataka, irrespective of the employer’s strength of more than one employee, a notice will have been applied for and must be applied for under the Act within 30 days of business establishment.
e-Karmika is the online state government portal that has introduced an online facility for registration under the Act.

Renewal Or Amendment Of Licenses

The inspection or approval may take 15 days from the acceptance of the application through the online system. process
The validity of registration is five years and renewable after expiry.
The registration fees depend on the number of employees – for no employees, INR 250 (USUS$3.7US$ 3.7than 1000 employees, INR 50,000 (US$ $728).

The procedure of Karnataka Shops and eEmployment Registration

• Click on ‘New Registrations’ and fill out the form online; then, submit it.Your username and Password will be generated and ssent toyour mobile number
• Fill and submit the application form online to Chief Inspector of your concerned regional circle office
• Take Challthe an from any nationalized bank based on your number of employees
• Make attachment of necessary documents alontheth the Bank Challan
• Get the acknowledgemthe ent number
• Submit the physical copy of online application form in the particular regional circle
• After verthe ification by the Senior Labour Inspector, if everything is well; you shall be granted the registration certificate
• Obtain the cert,ficate

ekarmika: Requirements and Documentation Process:

Form-A completion with the following supporting documents:

• Commercial address proof;
• Identity proof and Permanent Account Number (PAN) card copy of proprietor, partners or directors;
• PAN copy of the entity;
• Registrathe tion documents – par,tnership deed or memorandum of association (MOA) of the company; and
• Fee payment challans.

What are the Benefits of a Labour Card?

Business Key compliance

Hours of operation

The Act provides for a nine-hour day or a forty-eight-hour week work schedule for every employee in the state.
For those working overtime, it mrequiresemployees to pay overtime wages at twice the rormal wrate

Employment of women and children

The Act prohibits companies from employing children under 14 years of age. It also bans night shifts for women employees or young persons between the ages of 14 and 18 years.
Information technology (IT) or biotech companies with the requirement of women employees who work at night are likely to obtain special permission from authorities.

Weekly holidays

All establishments must remain closed for at least one day of the week and provide a day of rest to their employees.
The weekly holiday provision, however, is not available to medical shops, general stores, theatres, petrol bunks, lodges, hotels, clubs, hostels, and companies offering IT or biotechnology-related services.

Annual leave with wages

Every employee working in an establishment in Karnataka is entitled to take leaveave with wages at the rate of one day for every twenty days of work performed. For young persons, the provision is more relaxed offering a leave with wages at the rate of one day for every fifth,een days of work performed.”
The above mentioned are given as per the Act statement.
Thus..The Mandato above-mentioned, the Karnatakaaka Shops and Establishment Act, 1,962 is to be completed befothe the re deadline.