The obligatory registration of Karnataka Shops and Establishment Act, 1962 for companies, persons, and legal entities who is setting up a shop or commercial establishment in the state and these act-oriented documents are considered important for
- their human resources (HR) departments
It regulates establishments in the following commercial places
- Annual leaves for wage calculation,
- Wages and compensation,
- Women and Children Employment,
- Other perspectives
The state business developers and their employers must document this key statutory requirement and already developed or established firm must ensure their HR policies and handbook are compliant. The following are included under commercial establishments:
- Insurance entity,
- An establishment,
- Administrative services
The employers working in departments like
- Office work
- Refreshment house – a hotel, restaurant, a cafe or any others.
- Public Amusement – a theatre or any other place or entertainment.
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 where the persons employed fall within the scope of India’s Factories Act, 1948.”
- 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 or telegraph service, any system of conversancy;
- 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’s offices
- 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)
- Complementary or preparatory work persons engaged directly (clearing and forwarding clerks responsible for the dispatch of the goods)
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Mandatory for all new shops or commercial establishments in Karnataka irrespective the employers strength of more than one employee or note had to apply will apply under the Act within 30 days of business establishment.
e-Karmika is the online state government portal, which has started with online facility for registration under the Act.
Renewal Or Amendment Of Licenses
The inspection or approval might take 15 days from the acceptance of the application through online.
Validity of registration is five-year period and renewable after expiry.
The registration fees depends on the number of employers – no employee INR 250 (US $3.7)
-More than 1000 employee INR 50,000 (US $728).
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;
- Registration documents – partnership deed or memorandum of association (MOA) of the company; and
- Fee payment challans.
Business Key compliance
Hours of operation
The Act provides for nine-hours a day or forty-eight hours a week work schedule for every employee in the state.
For those working overtime, it mandates employees to pay overtime wages at twice the rate of normal wages.
Employment of women and children
The Act prohibits companies from employing children under 14 years of age. It also prohibits night shift for women employees or young persons between the age of 14 to 18 years.
Information technology (IT) or biotech companies with the requirement of women employees with night works are definitely to obtain special permission from authorities.
It is mandatory for all establishments to remain closed for at least one day of the week and provide a day rest to its employees.
The weekly holiday provision, however, is not available to medical shops, general stores, theatre, petrol bunks, lodges, hotels, clubs, hostel, and companies offering IT or biotechnology related services.
Annual leave with wages
Every employee working in an establishment in Karnataka is allowed to avail a leave 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 fifteen days of work performed.”
The above mentioned are given as per the Act statement.
The mandatory filing of Karnataka Shops and Establishment Act, 1962 is to be completed before deadline.
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