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Get registration under Karnataka Shops and Establishment Act

 

Mr. Naddem, running a small company, came to our office one day with a notice received from a Senior Labour Inspector.

I went through the notice and understood that notice was given by the Inspector for not obtaining registration under The Karnataka Shops And Commercial Establishments Act 1961.

 

What is this registration?

This registration is prescribed under respective state Laws. Anyone who is running a establishment/Shops has to obtain this from a Senior Labour inspector. Thorough this act, Govt. monitors the working hours to be prescribed for employees, Weekly Holidays, prohibition of appointment of Child labour.

 

Who has to take Registration under Karnataka Shops and Establishment Act?

Anyone having a Shop or Commercial Establishment in Karnataka has to take a registration.

Shop 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.

Commercial establishment means 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.

 

What needs to be done after obtaining a Registration?

A certificate issued by the Labour Inspector should be disclosed in the office premises.

Govt. has prescribed some registers to be maintained for leave, employee list, attendance list etc.Such registers are to be maintained and every year Annual Return to be submitted within 31st January.

 

Is there any time limit for registration under Karnataka shops and Establishment Act?

As per Act, within 30 days from commencement of work by establishment, one has to get a Registration done.

 

What will happen if Registration is not obtained?

There will be chances of Labour Inspector visiting your office and issuing the Notices for non-Registration. Officer can levy  a penalty from Rs.1000 to Rs.2000.

 

If  you need more clarification please mail it to me at [email protected] or raise query in comment section below.

 

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About CS Vighneshwar Bhat

  • shivakumar

    If we failed to obtain RC in the past..n wish to register now? What is penalty will be levied on us..or can we exempt from this…request your advice

    • Vighneshwar Bhat

      Dear Shivakumar,

      As per Act, first time offence penalty of Rs.1000/- can be levied, Granting an exemption or waiving of the penalty will lies with Labour Authorities.

  • Vishwanath HV

    Does this apply to one-person run establishments also, where no one else
    is employed? For example, to a doctor’s clinic, which he/she is
    managing alone?

    • Vighneshwar Bhat

      There is an exemption for offices of legal and medical practitioners in which not more than 3 persons are employed. If you satisfy this criteria registration not required.