Sunday, 19 August 2018

Compliance under The Karnataka Shops and Commercial Establishments Act, 1961 and Rules, 1963

This is an act to provide for the regulation of conditions of work and employment in shops and commercial establishments in the state of Karnataka.

To enforce this act, the Labour Commissioner will be the Chief Inspector. It is notified that Inspector/Senior Inspector will be Inspector and all department-level authorities will be additional Inspector.

Applicability

This act covers shops and commercial establishments.
Shops means any premises where any trade or business is carried on or where services are rendered to customers, and includes offices, storerooms, godowns, or warehouses, whether in the same premises or otherwise
A Commercial Establishment shall mean 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.
All types of shops/establishments including a private limited companylimited liability partnershippartnership firm or proprietary concern have to register under this Act.
The act is applicable even if you have one employee or none.

Compliance:

Registration of establishment: 
Registration to be done within 30 days from the date of commencement of business. Registrations are valid for a period of 5 years and can be renewed.
Display registration certificate at visible place. 
Intimate the changes: inform authorities if any change in address, ownership, number of employee etc

After closing the business of his establishment, should surrender the registration certificate to the registration authority.
Hours of work:
Working period not exceeds nine hours in a day including overtime and 48 hrs in a week.  Maximum 50 hours overtime per quarter. No young person allowed being employed more than 5 hours in a day. One weekly holiday must be granted.

Prohibition of employment of children: no children allowed work in any establishment.
Prohibition of employment of women and young person’s during night: Young persons and woman shall not be employed during night, between 8 pm to 6 am.

Certain establishments are exempted like IT & IT enabled service shall employment of women during night subject to the condition that the establishment provides facilities of transportation and security to such women employees and subject 15 conditions. For the employer must get permission by submitting Form R. 

Annual Leave: One day for every twenty days work, one day for every fifteen days of work performed by him, in case of a young person. Leave encashment: upon termination, resignation, retirement or separation for any reason.
Sick / casual leave: not more than twelve days leave per year.
Record management:
Form A – Establishment registration/Renewal/To report change of information.
Form P - Notice of Holiday
Form Q - Appointment Order
Form C – Registration certificate to be exhibited
Form F - Register of Leave with Wages
Form H - Leave with Wages Book
Form T - Combined Muster Roll cum Register of Wages
Form R - Permission to allow women to work after 8 PM
Form U - Combined Annual Return before 31st Jan
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