Karnataka has registered around 16,691 new businesses under the Shops and Establishment Act since April in 2020 when the lockdown was imposed. There has been nearly a 35% drop in the registration of businesses in 2020 when compared to the previous three years. This was revealed by a recent analysis of data provided by the Department of Labour.
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Discover the intricacies of the Shops and Establishment Act, a pivotal regulatory framework designed by various State Governments to meticulously govern the working conditions of employees in diverse sectors such as shops, commercial undertakings, and restaurants. While the Weekly Holiday Act of 1942, established by the Central Government, outlines the mandatory grant of holidays, there exists no comprehensive Central Government legislation addressing critical aspects like working hours, wage payment, and health and safety standards in commercial establishments.
In response to this regulatory void, individual state Governments have taken the initiative to enact Shops and Establishment Acts. These localised legislations serve as essential tools to regulate the conduct of commercial establishments within their respective jurisdictions. Delve into the nuanced provisions of these state-specific acts and gain a deeper understanding of how they play a crucial role in shaping the landscape of work in India.
The term ‘Shops’ include offices, storerooms, godowns whether on the same premises or otherwise, used in connection with certain business or trade. Whereas, the term ‘Establishment’ means a commercial, trading, banking or insurance establishment, an enterprise or administrative facility in which working persons are primarily engaged in office work, a hotel , restaurant, boarding or dining room, a café or some other refreshment room, etc.
| Obtaining registration under the Shops and Establishments Act means that your business is licenced under the jurisdiction of your regional area under the enacted Law of the State Labor Department under the sanction Senior Labor Inspector. As a result, your organisation will be registered in the government register and its legal status will be protected. |
The following entities established in the state of Karnataka and its notifies areas must register within 30 days of its commencement of operation
Karnataka Shops And Commercial Establishments Act, 1961 covers the administration of regular holidays, working hours, letter of appointment, employee attendance, etc.
The following are the main regulatory areas covered in the Act
By registering, the owner of the shops or establishments can
To register under the Shops and Establishments License in Karnataka you need scanned copies of the documents listed below:
This is the website of Karnataka’s E-Labour Department for online registration/ renewal of Shops and Establishments License In Karnataka.
Step 1 – Navigate to the Labour Department’s official site. Here you must click on the ‘APPLY ONLINE’ option and thereafter click on the Shops and Commercial Establishments Act.
Now click on New Registrations and fill the form online, submit it. A username and password will be generated and sent to your mobile number
Step 2 – Fill and submit the application form online.
Step 3 – Take out a challan from any nationalised bank according to the registration fee outlined for the number of employees you employ. Make attachment of the necessary documents outlined above along with the bank challan
Step 4– You will now get an acknowledgement number generated/ Submit a physical copy of the online application form in the labour office of your regional circle. After verification by the Senior Labour Inspector, if everything is well, you will be granted the registration certificate
Unlock growth for your business with seamless Shop and Establishment Act Registration. Navigate regulations effortlessly. Elevate your enterprise today!
You need to pay the registration fees according to the number of employees engaged in the organisation and they are calculated as follows –
| No. of employees | Fees (in Rupees) |
| Nil | 300 |
| 1 to 9 | 600 |
| 10 to 19 | 4000 |
| 20 to 49 | 10,000 |
| 50 to 99 | 20,0000 |
| 100 to 250 | 40,000 |
| 251 to 500 | 50,000 |
| 501 to 1000 | 70,000 |
| Above 1000 | 75,000 |
After registration, if you want to check the status of your application. You can do so with the acknowledgment number provided to you.
Now you can enter your acknowledgement number and click on the search button. Another window will open displaying your
The Karnataka Shops and Commercial Establishments Act, 1961 (KSCEA) is a law regulating the working conditions and hours of employees in shops and commercial establishments in the state of Karnataka, India. Here are some key rules of the Act:
A license granted under the Act is valid for 5 years. You must renew your shops and establishments license In Karnataka every five-year period, i.e. once every 5 years. Please keep in mind that you must apply for renewal one month before your certification expires.
Understanding the scope of the Karnataka Shops and Establishment Act is crucial for businesses operating within the state. Here’s a comprehensive breakdown of establishments that are exempt from the provisions of this legislation:
The following establishments are exempt from particular sections of the Karnataka Shops and Establishment Act:
Check into the core facets of the Karnataka Shops and Establishment Act to grasp the essential features shaping the employment landscape within the state. Here’s an overview of the major aspects encapsulated by this legislation:
These key provisions of the Karnataka Shops and Establishment Act underscore the state’s commitment to safeguarding the well-being of workers, promoting reasonable working hours, and fostering a healthy work-life balance. Employers and employees alike benefit from understanding and adhering to these crucial regulations that contribute to a fair and supportive work environment in Karnataka.
Getting a shop and establishment license in Karnataka involves the following steps:
Eligibility: Ensure your establishment falls under the Act's purview.
Prepare documents: Gather required documents like ownership proof, address proof, identity proof, and employee details.
Form filling: Fill out the online application form (e-Karmika portal) for registration. Fee payment: Pay the applicable registration fee online.
Verification: The department will verify your application and documents.
License issuance: Upon successful verification, you'll receive the license electronically.
The key rules of the Karnataka Shops and Commercial Establishments Act, 1961 (KSCEA) include:
Working hours: 9 hours/day for adults, 8 hours/day for young persons.
Weekly holidays: Minimum 24 consecutive hours.
Minimum wages: As per state government notifications.
Overtime: Double the usual rate for work beyond daily/weekly limits.
Annual leave: 15 days with wages for every year of service.
Child labour: Prohibited below 14 years.
Night work for women: Restricted between 10 pm and 6 am (with some exemptions).
Establishment registration: Mandatory for most shops and commercial establishments.
There is no new Act in 2023. The current Act is the Karnataka Shops and Commercial Establishments Act, 1961, with various amendments made to date. The latest significant amendment came in 2016, raising the maximum daily working hours from 8 to 9 for adults.
The latest amendment was in 2016, which primarily: Increased the maximum daily working hours for adults from 8 to 9. Introduced self-certification and third-party certification options for compliance with certain provisions. Clarified regulations for overtime calculation and compensation.
A shop establishment certificate is a license issued by the relevant state government under the Shops and Establishments Act, authorizing an establishment to operate legally and ensuring compliance with labour laws regarding working conditions, wages, and employee welfare.
The process for registering under the UP Shops and Establishment Act is similar to Karnataka, involving online application, document submission, fee payment, verification, and license issuance. You can find the specific details and online portal on the official website of the Uttar Pradesh Department of Labour.
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