13 provisions covered under Shops and Establishment Act of Karnataka

I have written an article Its all about registration under Karnataka Shops and Establishment Act about the requirement for registration under Shops and Establishment Act of Karnataka. In this article, I have listed out the main provisions covered under this act.


  1. Display Registration Certificate – Registration certificate must be displayed such that it is visible inside the office premises 
  1. Intimate the changes – The entity has to intimate the department 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. 
  1. Issue of appointment letter – Every employer, employing any person in or in connection with his establishment shall issue an appointment order in form ‘P’. Secondly, attendance shall be registered in form ‘T 
  1. 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. Weekly holiday – Every establishment shall remain closed for one day of the week. However, establishments such as medical shops, club, lodging, hotel, hostel, general stores, theater, petrol bunks, Information Technology or biotechnology related services are exempt from weekly holidays. 
  1. Working Hours and Leave – Any establishment shall not run its business before and after following hours in Bangalore city; Morning before 6 am and Night after 9 pm. Working period of any employee should not exceed 48 hours and 58 hours including extra working hours per week. 1 day per 20 days as earned leave and 1 day per 30 days as sick leave shall be given as leave. This leave account shall be recorded in the format ‘F’ 
  1. Prohibition and Night shifts – No child, under 14 years shall be required or allowed to work in any establishment. Secondly, no women shall be required or allowed to work whether as an employee or otherwise in any establishment after 8 pm. However, IT/BT organizations can get permission to allow women to work after 8 pm by submitting Form ‘R’ with necessary information 
  1. Due date for payment of salary – After each month salary shall be paid before 7th date of next month 
  1. Notice Period – Any employee who has completed 180 days service to the establishment cannot be dismissed without prior notice. 
  1. Annual Return – Annual report ending with 31st December shall be submitted before 31st January of next year in the format ‘U’. 
  1. Encashment of earned leave – Every employee shall be entitled to preserve earned leave for 40 days and permitted to encash unavailed earned leaves. 
  1. Minimum Wages – Minimum wages to the labours working in shops and commercial establishment has been fixed by the Karnataka state Government. The entities are not allowed to pay less than minimum wages. 
  1. Termination of services – 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. And if it is proved that an employee has been removed or dismissed without reasonable cause or without proof of misconduct, the employee shall be entitled to get compensation as one month’s pay for every year of service.


Thought for the day

Anger doesn’t solve anything, but it can destroy everything.


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About B E Kumar Prasad

B E Kumar Prasad
He is a Practicing Chartered Accountant in Bengaluru, India. He has 25+ years of experience in income tax, business setup, and NRI matters. He is also an Insolvency Professional and Registered Valuer (F&SA).Prasad welcomes your comments and questions. Please email him at simplifiedlaws20@gmail.com

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