Karnataka Shops and Commercial Establishments Act, 1961 

Registration of Establishments.- (1) Within the period specified in sub-section (3), the employer of every establishment shall send to the Inspector of the area concerned, a statement in the prescribed form together with such fees as may be prescribed, containing,-

(a) the name of the employer and the manager, if any;

(b) the postal address of the establishment;

(c) the name, if any, of the establishment; and

(d) such other particulars as may be prescribed. 

(2) On receipt of the statement and the fees, the Inspector shall, on being satisfied about the correctness of the statement, register the establishment in the register of establishments in such manner as may be prescribed, and shall issue, in a prescribed  form, a registration certificate to the employer. The registration certificate shall be prominently displayed at the establishment .

(3) Within thirty days from the date mentioned in column (2) below in respect of an establishment mentioned in column (1), the statement together with fees shall be sent to the Inspector under sub-section (1). 

(4) A registration certificate issued under sub-section (2), shall be valid for  five years and shall be renewed  before the expiry of the period of registration certificate on payment of such fees and in such manner as may be prescribed. 

(5) The registration certificate issued or renewed before the commencement of the Karnataka Shops and Commercial Establishments (Amendment) Act, 1997 shall, on such commencement, continue to be valid till the expiry of the period of registration certificate already granted and the employer of every such establishment shall renew his registration certificate before the expiry of such period in accordance with sub-section (4). 

Change to be communicated to Inspector. - It shall be the duty of an employer to notify to the Inspector, in the prescribed form, any change in respect of any information contained in his statement under Section 4, within fifteen days after the change has taken place. The Inspector shall, on receiving such notice and on being satisfied about its correctness, make the change in the register of establishments and shall amend the registration certificate or issue a fresh registration certificate, if necessary. 

Closing of establishment to be communicated to Inspector. - The employer shall, within fifteen days of his closing the establishment notify to the Inspector in writing the date of such closure and return the registration certificate. The Inspector shall, on receiving the information and being satisfied about its correctness, remove such establishment from the register of establishments and cancel the registration certificate:

Provided that if the Inspector does not receive the information, but is otherwise satisfied that the establishment has been closed, he may remove such establishment from such register. 

 

Issue of appointment orders.- Every employer, employing any person in or in connection with his establishment, shall issue an appointment order in writing indicating the name, designation, wage scale of such person and terms and conditions of his employment and serve the same on such person within thirty days from the date of appointment in his establishment: 

Daily and weekly hours. - (1) No employee in any establishment shall be required or allowed to work for more than nine hours on any day and forty-eight hours in any week: 

Provided that the total number of hours of work including overtime shall not exceed ten hours in any day except on days of stock-taking and preparation of accounts:

Provided further that the total number of overtime hours worked by an employee does not exceed fifty in a period of three continuous months. 

Extra wages for overtime work. - (1) Where an employee works in any establishment for more than nine hours in any day or for more than forty-eight hours in any week he shall in respect of such overtime work be entitled to wages at twice the rate of normal wages.

(2) For the purposes of this section "normal wages" means the basic wages plus such allowances, including the cash equivalent of the advantage accruing through the concessional sale to workers
of food grains and other articles, as the worker is for the time being entitled to, but does not include a bonus. 

(3) The cash equivalent of the advantage accruing through the concessional sale to a worker of food grains and other articles shall be computed as often as may be prescribed on the basis of the maximum quantity of foodgrains and other articles admissible to a standard family.

Explanation 1.-"standard family" means a family consisting of an employee, his or her spouse and two children below the age of fourteen years requiring in all three adult consumption units.

Explanation 2.-"adult consumption unit" means the consumption unit of a male above the age of fourteen years, and the consumption unit of a female above the age of fourteen years and that of a child below the age of fourteen years shall be calculated at the rates of "8 and "6 respectively of one adult consumption unit.

(4) The State Government may make rules prescribing,-

(a) the manner in which the cash equivalent of the advantage accruing through the concessional sale to a worker of food grains and other articles shall be computed;

(b) the registers that shall be maintained in an establishment for the purpose of securing compliance with the provisions of this section. 

Interval for rest. - The periods of work of an employee in an establishment each day shall be so fixed that no period shall exceed five hours and that no such person shall work for more than five hours before he has had an interval of rest at least one hour. 

Spread-over. - The periods of work of an employee in an establishment shall be so fixed that, inclusive of his interval for rest, they shall not spread-over more than twelve hours in any day. 

Opening and dosing hours. - (1) No establishment shall on any day, be opened earlier than and closed later than such hours as may be fixed by a notification issued by the State Government:  

Weekly Holidays. - (1) Every establishment shall remain closed for one day of the week. The employer shall fix such date at the beginning of the year, or within thirty days from the date of commencement of establishments, as the case may be notify it to the Inspector and specify it in a notice prominently displayed in a conspicuous place in the establishment. The employer shall not alter such date more often than once in three months, shall notify the alteration to the Inspector, and shall make the necessary change in the notice in the establishment. 

(2) Notwithstanding anything contained in sub-section (1), the State Government may allow an establishment to remain open throughout the week if it is satisfied that the establishment employs additional staff for meeting the requirements of sub-section (3) of this section.

(3) Every employee in an establishment shall be given at least one whole day in a week as a holiday for rest:

Provided that in establishments in which rest for one-and-a-half days in a week is allowed, such period of rest shall be continued.

(4) It shall not be lawful for an employer to call an employee at, or for an employee to go to, his establishment or any other place for any work in connection with the business of his establishment on a weekly holiday given to the employee under sub-section (3) or on a day on which such establishment remains closed.

(5) No deduction shall be made from the wages of an employee in any establishment on account of the holiday given to him under sub-section (3). If any employee is employed on daily wages, he shall nonetheless be paid his wages for the weekly holiday. 

Annual leave with wages. -  (1) Every employee in an establishment shall be entitled to leave with wages and shall be to avail such leave for the number of days calculated at the rate of

(i) one day for every twenty days work performed by him in case of an adult;

(ii) one day for every fifteen days of work performed by him in case of young person;

Explanation.-For the purpose of this sub-section,-

(a) any day of lay-off, by agreement or contract as permissible under the standing order or for any other reasons beyond the employer's control;

(b) in the case of female employee, maternity leave for any number of days not exceeding twelve weeks; and

(c) the leave earned in the year prior to that in which the leave is enjoyed.

Shall be deemed to be days on which the employee has worked in an establishment for the purposes of computation of leave under this section, but the employee shall not earn leave for that period. 

Wages during leave period. - (I) For the leave allowed to him under Section 15, an employee shall be paid at the rate equal to the daily average of his total full-time earnings for the days on which he worked during the month immediately preceding his leave, exclusive of any overtime wages and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through the concessional sale to the employee of food grains and other articles.

(2) The cash equivalent of the advantage accruing through the concessional sale to the employee of food grains and other articles shall be computed as often as may be prescribed on the basis of the maximum quantity of food grains and other articles admissible to a standard family.

Explanation.-The explanations to sub-section (3) of Section 8 shall be applicable for purposes of determining standard family under this sub-section. 

Payment in advance in certain cases.- An employee who has been allowed leave for not less than four days in the case of an adult, and for not less than five days in the case of a young person, shall before his leave begins, be paid the wages due for the period of leave allowed.

Mode of recovery of unpaid wages.- Any sum required to be paid by an employer under this Chapter but not paid by him shall be recoverable as delayed wages under the provisions of the Payment of Wages Act, 1936

Power to make rules.- The State Government may, to carry out the purposes of this Chapter, make rules" directing employers to keep registers containing such particulars as may be prescribed and requiring the registers to be made available for examination by Inspectors. 

Prohibition of employment of women and young persons during night. - No woman, or a young person shall be required or allowed to work whether as an employee or otherwise in any establishment during nights:  Provided that the State Government may, by notification exempt any establishment of Information Technology or Information Technology Enabled Service from the provisions of this section relating to employment of women during night subject to the condition that the establishment provides facilities of transportation and security to such women employees and subject to any other condition as may be specified in the notification. 

Inspectors. - (1) The State Government may by notification appoint such persons or such class of persons as it thinks fit, to be Inspectors and Assistant Inspectors for the purposes of this Act within such local limits as it may assign to them respectively.

 (2) The State Government may, by Notification, appoint such public officers as it thinks fit to be Additional Inspectors, for all or any of the purposes of this Act, within such local limits as it may assign to them respectively.

(3) In any area where there are more Inspectors than one, the State Government may, by Notification, declare the powers which such Inspectors shall respectively exercise. 

(4) The Commissioner of the Labour in Karnataka shall be the Chief Inspector for the purposes of this Act, for the whole of the State of Karnataka.

Powers and duties of Inspectors.- Subject to any rules made by the State Government in this behalf, an Inspector may, within the area in his jurisdiction,-

(a) enter, at all reasonable times and with such assistants, if any, being persons in the service of the State Government, as he thinks fit, any place which is or which he has reasons to believe is, an establishment;

(b) make such examination of the premises and of any prescribed registers, records and notices, and take on the spot or otherwise, evidence of any person as he may deem necessary, for carrying out the purposes of this Act; and 

(c) exercise such other powers as may be necessary for carrying out the purposes of this Act:

Provided that no person shall be required under this section to answer any question or give any evidence tending to incriminate him. 

Penalties. - (1) Whoever contravenes any of the provisions of Sections 4, 5, 6, -A, 7, 9, 10, 11, 12, 13, 15, 16, 25 and 39, shall, on conviction, be punished with fine, which, for a first of fence, may extend to one thousand rupees and for a second or any subsequent of fence, may extend to two thousand rupees.

(2) Whoever contravenes any of the provisions of Sections 8, 17, 29 and 34 shall, on conviction, be punished with a fine which may extend to two hundred and fifty rupees.

(3) Whoever contravenes the provisions of Section 24, shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to six months or with fine which shall not be less than ten thousand rupees, but which may extend to twenty thousand rupees or with both, for the first offence and for the second and subsequent of fences, he shall be punishable with imprisonment of a term which shall not be less than six months but which may extend to one year.