shops and commercial establishments

THE KARNATAKA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT 1961

An Act to provide for regulation of service conditions of persons employed in shops and commercial establishments in the state of Karnataka

definition

Commercial establishment means a commercial or trading or banking or insurance establishment, an establishment or administrative service in which person employed are mainly engaged in office work or Hotel, restaurant, boarding or eating house, a café or any other refreshment house, a theatre or any other place of public amusement or entertainment and includes such establishments as the State government may by notification declare to be a commercial establishment for the purposes of this Act

Definition

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,

any clerical or other member of the staff of a factory or industrial establishment who falls outside the scope of the Factories Act 1948,

but does not include a member of the employer’s family

definition

Establishment means a shop or a commercial establishment

Family in relation to an employer means the husband or wife, son daughter, father, mother, brother or sister of such employee who lives with and is dependent on him

Definition

Shop 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 used in connection with such trade or business,

but does not include a commercial establishment or a shop attached to a factory where the persons employed in the shop which falls within the scope of factory Act 1948

Chapter II Registration of establishments

Within 30 days of the establishment commencing its operation the employer shall make an application to the Inspector along with prescribed fee.

The inspector on being satisfied of the eligibility requirement and correctness of the application will register the establishment and send the certificate to the employer

The certificate shall be prominently displayed in the shop.

Any changes shall be informed by the employer to the inspector within 15 days.

Based on such information the inspector shall make changes in his records

In the event of closure it shall be informed to the inspector within 15 days by employer and the certificate shall be surrendered. Inspector will cancel the registration

6A. issue of appointment order

Employer shall issue appointment orders to the persons employed in shops and commercial establishments

in writing indicating the name, designation, wage scale of such person, and other terms and conditions of his employment and

serve the same on such person

within thirty days from the date of appointment in his establishment

Chapter III7. Hours of work

Not more than nine hours a day and

forty-eight hours in any week.

Total hours including OT shall not exceed ten hours a day except on account of work relating to stock taking and preparation of accounts.

Total OT hours shall not exceed fifty in a period of three continuous months

Hours of work

Any person working for more than 9 hours a day or forty eight hours a week is entitled to OT at twice the normal wage rates

Rest interval: no person shall work for more tan five hours before he as had an interval of rest at least one hour

Spread over. Including the rest interval it shall not exceed 12 hours a day

Opening and closing hours

Establishment shall be opened and closed only during the hours prescribed by the government

12 weekly holidays

One day per week

Employee (including a daily wager) is entitled to full wages for weekly holiday

Such day shall be approved by the inspector and

Displayed prominently in the notice board

Such day shall not be changed often earlier than three months

Government may allow the establishment to remain open all the days if it is satisfied that additional staffs are employed to provide weekly holiday.

13. Selling outside establishments prohibited after closing hours.

No person shall carry on in or adjacent to a street or public place the sale of any goods after the hour fixed under section 11 dealing in the same class of goods

Chapter IVAnnual Leave with Wages

15. One day for every twenty days work performed by him in case of an adult

One day for every fifteen days of work performed by him in case of a young person

for the purpose of Annual leave calculation the days of layoff by agreement or standing order, maternity leave up to 12 weeks in case of female employees, and the earned leave availed during the year shall be deemed to be days on which the employee has worked in an establishment but shall not earn leave for such days.

If any employee is entitled to more favorable leave rules they shall apply[s. 14]

Annual Leave with Wages

An employee discharged/terminated during the year is entitled to earned leave on pro rata basis

When an employee is discharged or dismissed on medical grounds the annual leave balance is encashable.

When the services are terminated the entire balance of Earned leave shall be encashable.

In case of resignation the leave applied but refused sanction by the employer is encashable.

Unavailed leave can be carried forward to the next year up to 30 days in case of adults and up to 40 days in case of young persons.


Leave applied but refused sanction can be carried forward without any limit

Leave application shall be made atleast 10 days in advance for availing

Earned leave may be availed upto three times in a year or as may be agreed between the employer and employees

To ensure continuity of work the employer may frame a leave scheme in agreement with the representatives of employees.

Such scheme shall be in force for a period of one year


Such scheme shall be properly displayed in the notice board

Leave requested at least 10 days in advance cannot be refused, unless for such refusal there is a provision under the scheme framed by the employer.

Every employee shall be entitled to leave with wages on medical grounds upto 12 days a year.

Earned leave on medical grounds shall be sanctioned even if it is not applied 10 days in advance.

In such cases the wages shall be paid within 15 days from the day the leave begins

Unavailed leave shall not be taken into consideration in computing the period of any notice required to be given before discharge, dismissal

16 wages during leave period

Earned leave shall be on full wages

An employee who has been allowed leave for not less than four days in case of adult and five days in case of young person shall before his leave begins be paid the wages

Payment of wages Act and workmen’s Compensation Act is applicable to shops and commercial establishments covered under this act

Chapter VIEmployment of Children and Women

No child shall be required or allowed to work in any establishment

No woman or a young person shall be required or allowed to work whether as an employee or otherwise in any establishment during nights.

Women may be employed during the night if the employer provides transportation to and from the residence and security to the women employees

39.Notice for removal and right to Appeal

Any employee who has continuously served at least for six months cannot be removed or dismissed without reasonable cause and unless and until one month’s previous notice or pay in lieu of notice is given to him.

Notice or pay in lieu of notice is not required if the employee is removed/dismissed for misconduct after due process of enquiry

An employee removed/dismissed has the right to appeal to the notified officer of the government.

39.Right to compensation and revision

Where the appellate authority comes to the conclusion that the removal / dismissal is not without reasonable cause or without misconduct being proved and the employer refuses to reinstate him in the service

He is entitled to compensation from the employer not exceeding one months pay for every year of service.

Any person aggrieved by an order of the appellate authority may apply to District Judge for revision of the case.

No employee who has been awarded compensation under this section shall be entitled to bring a civil suit in respect of the same claim