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SL.NO. Description


1. ACT ENFORCEMENT, PURPOSE and APPLICATION: This act has been enforced from 01-03-1962 in karnataka state and time to time amendments are made.
2. This Act provides for the regulation of conditions of work and employment in Shops & commercial establishments in the State of Karnataka.
3. This Act applies to the areas notified by the Karnataka Government.


Shops: 'shops' means any premises where any trade or business is carried on or where services are rendered to customers and includes offices, storerooms, godowns, warehouses, whether in the same premises or otherwise, used in such connection with such trade or business, but does not include a commercial establishment or a shop attached to a factory.

Commercial Establishment: Commercial Establishment means 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.

Owner: Owner means the person having charge of or owning or having ultimate control over the affairs of an establishment and includes members of the family of an employer, a manager, agent, other person acting in the general management and control of an establishment.

Employee: 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.


1. Registration of Organization:
  • Each owner, within 30 days from starting the business shall submit application form in form ‘A’ to register his establishment.
  • Registration certificate must be displayed on visible place inside the office premises.
  • Registration certificate is valid for ‘5’ years period. Before the expiry of the period, renewal application to be submitted for the next period.
  • It shall be the duty of an employer to notify to the registration authority, in the prescribed form, any change with respect to any information contained in his statement during registration/renewal within 15 days after the change. Ex. Change in address, change in ownership, change in number of employee etc.
  • After closing the business of his establishment, should surrender the registration certificate to the registration authority.

Exemptions from Registration:

       Following organizations are exempted from registration.
  • Offices of, or under the central or state Government, or local authorities, except commercial undertaking.
  • Any railway service, water transport service, postal, telegraph or telephone service, any system of public conservation or sanitation or any industry, or services like water, power, light to the public.
  • Railway dining cars .
  • Establishments for the treatment or care of the handicap or mentally unfit.
  • Establishments of the food corporation of India.
  • Offices of legal practitioners and medical practitioners in which not more than 3 persons are employed.
  • Offices of bank.

2. Weekly Holiday:

           Every establishment shall remain closed for one day of the week. The employer shall fix such day in the beginning   of the year and notify it to the registration authority and specify it in a notice prominently displayed in a conspicuous  place inside the establishment. Instruction: Any employer is taking exemption from weekly holiday , shall fix different days as holiday for his establishment and shall obtain the weekly holiday break by submitting the report to the deputy labour commissioner.

Establishments exempted from weekly holiday:

      Following establishments are exempted from weekly holiday.
  • Medicine and Medical equipment sale.
  • Club, Lodging and Hotel, Hostel, Hostel attached to school or college, Residential schools.
  • Shops, Stalls and refreshment rooms at bustand and railway station.
  • Hair cutting saloon.
  • Shops dealing mainly in Meat, Fish, Egg, Milk and Dairy product(except ghee) Bread, Chocolate, Fresh ingredients, Confectionery, Ice cream and cooked food for sale, Fruits, Vegetables, Flowers ,raw fodder sales.
  • Paan Beedi, Cigarette, Soft drink sales shop.
  • Daily news paper, Weekly magazine sails shop and related office.
  • Cinema, Theater, and other public Recreation centers.
  • Petrol, Diesel for sale.
  • Tan bodies.
  • Exhibition Shops and Museum.
  • Oil, Flour mill, Brick and Lime manufacturing industries.
  • Copper, Brass, Container, Manufacturing firms.
  • Information / Biotechnology information / Biological engineering related service.
  • Organizations conducting research on infectious diseases.

3. working hours:

    Any establishment shall not run its business before and after following hours.
  • In Bangalore city; Morning before 6 am and Night after 9 pm.
  • Other places ; Morning before 8 am and Night after 8 pm.
Prohibitions and Exemptions of work:

 1. No child, under 14 years shall be required or allowed to work in any establishment. 2. No women shall be required or allowed to work whether as an employee or otherwise in any establishment after 8 pm.

INSTRUCTION; IT/BT organizations can get permission to allow women to work after 8 pm by submitting Form ‘R’ with necessary information.

4. Employment and Regulation:
  • Every employer, employing any person in or in connection with his establishment shall issue an appointment order in form ‘P’.
  • Every day, employee attendance shall be registered in form ‘T.
  • The organizations having weekly holiday exemption, after taking continuous service of 6 days from any employee, shall give 7th day as mandatory holiday for him. In special cases 7th day can not be given as holiday, 11th day should be given as mandatory holiday.
  • After each month salary shall be paid before 7th date of next month.
  • Working period of any employee should not exceed 48 hours and 58 hours including extra working hours.
  • End of the year, counting the working day of the employees for present year; 1 day per 20 days as earned leave and 1 day per 30 days as sick leave shall be calculated. This leave account shall be recorded in the format ‘F’ .
  • Any employee who has completed 180 days service to the establishment can not be dismissed without prior notice.

5. Records management:
  • Use format 'A' ; for Establishment registration/Renewal/To report change of information.
  • Use format 'P' ; to fix the different day as the weekly holiday.
  • Use format 'F'; to maintain leave records and Use format ‘H’ ;to give the copy to the employee.
  • Use format 'T'; to maintain daily attendance of employee.
  • Use format 'R'; to get permission to allow women to work after 8 pm.

6. Submission of annual report:

     Annual report ending with 31st December shall be submitted before 31st January of next year in the format 'U'.

Employees’ Rights:
  • Every employee have rights to take weekly one day as compulsory holiday.
  • Where an employee works in any establishment for extra hours in any day or any week, he shall in respect of such overtime work to be entitled to wages at twice the rate of normal wages.
  • Every employee shall be entitled to preserve earned leave for 40 days.
  • Every employee shall be entitled to encash unavailed earned leaves.
  • An employee, removed or dismissed shall have a right of appeal to jurisdiction officer on the ground that there was no reasonable cause for the removal or dismissal.
  • Where an employee has been removed or dismissed without reasonable cause or without proof of misconduct is proved, the employee shall be entitled to get compensation as one month’s pay for every year of service.


1.Wage payment act of 1936
2.Minimum wage act 1948
3.The workmen’s compensation act 1923
4.Industrial dispute act of 1947
5.Grachuity payment act of 1970(Only when there is more than 10 employees)
6.Bonus payment act of 1965(Only when there is more than 10 employees )


     Minimum wages to the labours working in shops and commercial establishment has been fixed by the Karnataka state Government; first time in the year 1988.Time to time revision is done. Presently 2003 revised notification is in force. For more information view the department website.


       To enforce this act labour commissioner will be the “Chief Inspector”. It is notified that Inspector/Senior Inspector as “Inspector” and all department level authorities as “Additional Inspector”.


Responsibilities are delegated among the department administration hierarchy.
1.Labour/Senior Labor Inspector: Authority for registration/Renewal of establishment.
2.Assistant Labour Commissioner: Appealing Authority to enquire the employee dismissal case.
3.Deputy Labour Commissioner: Authority for Weekly holiday exemption, Woman working hour exemption.
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