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Karnataka Shops and Establishment Act | Company Vakil

Karnataka Shops and Establishment Act

Overview

This Act has been enacted for the regulation of conditions of work and employment in Shops and Commercial establishments in the State of Karnataka. This Act has been enforced from 1-03-1962. It applies to the areas notified by Karnataka Government. This Act has been introduced to regulate hours of work, annual leave with wages, wages and compensation, employment of women and children etc. This Act extends to the whole state of Karnataka.

Definitions

Shops: ‘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.

Commercial Establishment: Commercial Establishment means a commercial or trading or banking or insurance establishment, an establishment or administrative service in which persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house, a café or any other refreshment house, a theatre or any other place of public amusement or entertainment.

Owner: Owner means the person having charge of or owning or having ultimate control over the affairs of an establishment and includes members of the family of an employer, a manager, agent, other person acting in the general management and control of an establishment.

Employee: Employee means a person wholly or principally employed in or in connection with, any establishment whether working on permanent, periodical, contract or piece – rate wages or on commission basis, even though he receives no reward for his labour and includes an apprentice.

Provisions of the Act

Duties of Owners:

Registration of Organisation

Owner within 30 days from starting the business, submit application in form ‘A’ to register his establishment. Registration certificate must be displayed on visible place inside office premises. The certificate is valid for 5 years. After closing the business, surrender the registration certificate to the authority. Some organisations are exempted from registration like Offices under Central & State Government or local authorities except commercial undertaking, railway service, water transport service, postal, telegraph or telephone service, Railway dining cars, Offices of bank, offices of legal practitioners & medical practitioners, establishment of food corporation of India etc.

Weekly Holiday

Once a week, establishment shall remain close. Some organisations are exempted from holiday like Medical equipment sale or Medicine, Club, Lodging and Hotel, Hostel, Shops, Stalls, Hair cutting saloon, Petrol, Diesel, Tan bodies, Oil, flour mill, brick and lime manufacturing firms, copper, brass firms etc

Working Hours

Establishment shall not run its business before and after following hours: In Bangalore – Morning before 6 am and night after 9 pm. Other places – Morning before 8 am and Night after 8 pm. Also, no child under 14 years shall be required or allowed to work. No women shall be required to work after 8 pm.

Submission of Annual Report

Annual report ending with 31st December shall submitted before 31 January of next year in the format ‘U’.

Employee’s Rights

Right to take once a week holiday

Right to preserve earned leave for 40 days

Right to encash unavailed earned leaves

Right to get twice the rate of normal wages, when worked for extra hours in any day or any week.

Right to appeal, if an employee got removed or dismissed.

Right to get compensation as one month’s pay, if an employee has been removed or dismissed without reasonable cause or misconduct have been proved.

Application of other Acts

Wage payment act of 1936

Minimum wage act 1948

The workmen’s compensation act 1923

Industrial dispute act of 1947

Gratuity payment act of 1970 (more than 10 employees)

Bonus payment act of 1965 (more than 10 employees )

Karnataka Shops and Establishment Act Registration

Who needs to register?

All business establishments (with or without any employees) in Karnataka

How to Apply?

Submit the application in Form-A duly supported with documents to Labour Inspector with registration fee.

Information required for filling up of Form A

Name of the Company

Postal Address

Telephone No.

E-mail Address

Details of Director/Managing Director/Proprietor – Address, Phone no., Email ID

Details of Authorized Signatory

Nature of Business

Date of Commencement of Business

No. Of Male & Female in the company

Weekly Holiday

Documents required for registration along with Form A

Incorporation Certificate of Company

MoA & AoA

Rental Agreement/Lease Agreement of Company

Company PAN Card

Address Proof of Director – Lease/Rental Agreement

ID Proof of Director – Pan Card / Election Card / Passport / Driving License

List of Directors

Business with special needs – Long Hours and Women Workers

Separate Permission is required for working on holidays or beyond working hours or women working after closing hours from Labour Officer.

Renewals & Changes

If any changes, Form A to be used. Renewal of the Certificate need to be done every 5 years. For more than 1 branches, separate registration is required.

Registration Fee Structure

Sl. No

No of employees

Fees in INR

1

NIL

250-00

2

1 to 9

500-00

3

10 to 19

3,000-00

4

20 to 49

8,000-00

5

50 to 99

15,000-00

6

100 to 250

30,000-00

7

251 to 500

35,000-00

8

501 to 1000

45,000-00

9

above 1000

50,000-00

Important registers to maintain

Register of leave with wages (Form – F)

Visit book

Appointment order (Form – Q)

Notice to be exhibited on weekly holidays (Form P)

Registration certificate to be exhibited (Form C)

Procedure for Karnataka Shops & Establishment Registration

Following are the steps to register your establishment online:

Step 1:

Visit the website https://labouronline.kar.nic.in/ . Click on Apply online and then Click on Shops and Commercial Establishments Act. It will direct you to Government of Karnataka, Department of Law’s website.

Step 2: Click on New Registrations.


Step 3:

Fill the required information and Submit.

Step 4: Take Challan from any bank based on number of employees and attach required documents.

Step 5 : Submit physical copy of online application in the regional circle.

Benefits of Shop and Establishment License

Helps to open a Current Account for your business

Helps to get loans easily from Banks or Financial Institutions

Helps to get facilities like enjoying Tax Benefits, Power Tariff and exemption from State Government

Helps to show your registration proof when Anu inspector visits your office.

Registration is fully online. Hence, registration is easy and quick.

Summary

Karnataka Shops and Commercial Establishments Act, 1961 regulates the registration, working conditions, leaves, wages and other compliances related to shops and establishments in Karnataka. Online Registration has become easy and quick For more details visit CompanyVakil.com.

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