Introduction:

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

  • employers
  • their human resources (HR) departments

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

The state business developers and their employers must document this key statutory requirement and already developed or established firms must ensure their HR policies and handbook are compliant. The following are included under commercial establishments:

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

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 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.”

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 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 the 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 (caretakers, 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)

Registration Process:

Mandatory for all new shops or commercial establishments in Karnataka irrespective the employer’s 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 an 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 online.

The validity of the registration is a five-year period and renewable after expiry.

The registration fees depend on the number of employers – no employee INR 250 (the US $3.7)

-More than 1000 employee INR 50,000 (the 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 compliances

“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 shifts 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.

Weekly holidays

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, theater, 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 allowed to avail of 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.

Thus…

The mandatory filing of the Karnataka Shops and Establishment Act, 1962 is to be completed before the deadline.

Read more about at  how to get new pan card.

Author Bio

Qualification: CA in Job / Business
Company: Kanakkupillai
Location: Bangalore, Karnataka, IN
Member Since: 13 Jul 2019 | Total Posts: 1

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