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1962: KAR. ACT 8] Shops and Commercial Establishments 1

THE KARNATAKA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT, 1961

ARRANGEMENT OF SECTIONS
Statement of Object and Reasons
Sections :
CHAPTER I
PRELIMINARY
1. Short title, extent, commencement and application.
2. Definitions.
3. Exemptions.
CHAPTER II
REGISTRATION OF ESTABLISHMENTS
4. Registration of Establishments.
5. Change to be communicated to Inspector.
6. Closing of establishment to be communicated to Inspector.
6A. Issue of appointment orders.
CHAPTER III
HOURS OF WORK

7. Daily and weekly hours.

8. Extra wages for overtime work.
9. Interval for rest.
10. Spread over.
11. Opening and closing hours.
12. Weekly holidays.
13. Selling outside establishment prohibited after closing hours.
CHAPTER IV
ANNUAL LEAVE WITH WAGES

14. Application of chapter.

15. Annual leave with wages.
16. Wages during leave period.
17. Payment of advance in certain cases.
18. Mode of recovery of unpaid wages.
19. Power to make rules.
20. Power to exempt establishments.
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2 Shops and Commercial Establishments [1962: KAR. ACT 8

CHAPTER V
WAGES AND COMPENSATION
21. Application of the Payment of Wages Act.
22. Application of the Workmens Compensation Act.
23. Omitted.
CHAPTER VI
EMPLOYMENT OF CHILDREN AND WOMEN
24. Prohibition of employment of children.
25. Prohibition of employment of women and young persons during night.
CHAPTER VII
ENFORCEMENT AND INSPECTION
26. Inspectors.
27. Powers and duties of Inspectors.
28. Inspectors to be public servants.
29. Employer to produce registers, records, etc., for inspection.
CHAPTER VIII
OFFENCES, PENALTIES AND PROCEDURE
30. Penalties.
31. Procedure.
32. Limitation of prosecutions.
33. Penalty for obstructing Inspectors, etc.
CHAPTER IX
MISCELLANEOUS
34. Maintenance of registers and records and display of notices.
35. Saving of certain rights and privileges.
36. Indemnity.
37. Delegation of powers.
38. Power of Government to suspend provisions of the Act during fairs and
festivals.
39. Notice of dismissal.
40. Power to make rules.
41. Notifications and Rules to be laid before the State Legislature.
42. Repeal and savings.
43. Repeal of Central Act XVIII of 1942.
44. Power to removal of difficulties.
SCHEDULE

****
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1962: KAR. ACT 8] Shops and Commercial Establishments 3

STATEMENT OF OBJECTS AND REASONS

I
Act 8 of 1962.- At present the Madras Shops and Establishments Act, 1947, is
in force in Madras area. The Mysore Shops and Establishments Act, 1948, is in
force in the Mysore area. The Hyderabad Shops and Establishments Act, 1957, is in
force in Hyderabad area and the Bombay Shops and Establishments Act, 1948, is
in force in the Bombay area. It is considered expedient to have a uniform law in the
State of Mysore for the regulation of the terms and conditions of work and
employment in shops and commercial establishments. The Government of India
had circulated a Draft Bill for consideration of State Governments to initiate
legislation on similar lines where necessary. Both these objects will be served by
enacting legislation on the lines of this Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 12th
February 1959 as No.2653 at page. 32.)

II
Amending Act 36 of 1966.According to sub-section (2) of section 39 of the
Act, all appeals by employees removed or dismissed from service lie to the
prescribed authority or if no authority is prescribed, to the Commissioner of Labour.
This means that only one appellate authority for the entire State has to deal with the
appeals involving much difficulty and inconvenience to all persons concerned. It is
considered necessary to amend the Act to provide for appeals to different
authorities in different places depending on the area from which the appeal arises
and the class or category to which an establishment belongs. It is also considered
necessary to provide for the transfer of appeals under section 39 (2) pending before
the Commissioner of Labour to the appropriate appellate authority.
Hence this Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A, dated 22nd
November 1966 as No. 193 at page. 4.)

III
Amending Act 4 of 1969.It is proposed to provide for supervision of the work
of Labour Inspectors who are appointed as Inspectors under the Mysore Shops and
Commercial Establishments Act, 1961, by the Assistant Labour Commissioners and
the Labour Officers. This cannot be done unless the Assistant Labour
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4 Shops and Commercial Establishments [1962: KAR. ACT 8

Commissioners and Labour Officers are also made Inspectors under the said Act.
There is no provision for the appointment of the Additional Inspector under the Act,
and it is proposed to provide for such appointments.
The Mysore Maternity Benefit Act 1959 has been repealed and the Maternity
Benefit Act 1961 (Central Act 53 of 1961) has been brought into force. It is therefore
necessary to amend Chapter V of the Act suitably.
Hence the Bill.
(Obtained from file LAW 81 LGN 67.)
IV
Amending Act 33 of 1982.In his Budget speech for the year 198283 the
Finance Minister indicated that in the interest of revenue and for better enforcement
of the provision of the Act annual renewal of the registration of shops and
commercial establishments would be provided under the Karnataka Shops and
Commercial Establishments Act, 1961. The provision for renewal also facilitates
maintenance of up-to date statistics of such establishments and would also result in
better conditions of service for the employees.
Hence the Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A, dated 26th July
1982 as No. 588 at page. 4.)
V
Amending Act 17 of 1986.The Food Corporation of India is a key
Organisation in the food grains distribution programme in the State.
The establishments of the said Corporation are exempted from the provisions of
the enactments similar to that of the Karnataka Shops and Commercial
Establishments Act, 1961 in many of the States/Union territories in India.
It is considered, therefore, necessary to exempt this Organisation from the
provisions of the Karnataka Shops and Commercial Establishments Act, 1961, as is
done in the case of Postal, Telegraphic or Telephone Service etc., and
organisations which supply power, light or water etc., to the public.
Hence the Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A, dated 21st
February 1986 as No. 134 at page. 3.)
VI
Amending Act 25 of 1997.It is proposed to amend the Karnataka Shops and
Commercial Establishments Act, 1961, to provide for:
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1962: KAR. ACT 8] Shops and Commercial Establishments 5

(1) enhancing age limit of a child from 12 to 14 years, in definition of child.

(2) renewal of registration certificate once in five years instead of every
year;
(3) compulsory issue of appointment orders by the employers to the
employees in writing indicating the name, designation and terms of conditions etc.,
of appointment within thirty days from the date of appointment in his establishment,
by insertion of new section 6A.
(4) enhancing the age limit from 12 to 14 and 15 to 18 in relation to
hours of work of young persons.
(5) fixing of weekly holidays within 30 days from the date of
commencement of new establishment.
(6) removal of minimum period of 240 days or more of work, to get
entitled for leave with wages and certain other consequential amendments.
(7) enhancing the age limit from 12 to 14 and 15 to 18 for the purpose
of prohibition of employment of young persons.
(8) separate enhanced punishment for employment of Children.
(9) removal of the maximum limit of six months pay as compensation
payable by the employer to an employee who is removed or dismissed without
reasonable cause of proof of misconduct.
(10) enhancement of punishments of certain offence.
Hence the Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A, dated 21st
February 1997 as No. 245 at page. 13.)
VII
Amending Act 11 of 2001.- The nature of work in information Technology
establishments and Information Technology enabling services or Establishments;
Bio-Technology and Research Centres of establishments of epidemic and other
diseases, is such that it requires flexibility in terms of working hours as their work
entails lot of metal work in terms of fault finding, imagination and reflection and
design. So much so no time can be setout with regard to their working hours and
even weekly holiday, except assigning task to be accomplished.
Therefore, it is considered necessary to amend the Karnataka Shops and
Commercial Establishments Act, 1961 to give partial exemption regarding opening
and closing hours and weekly holiday so as to provide flexi time.
Hence the Bill.
(Vide L.A. Bill No. 2 of 2001 File No. SAMVYASHAE 20 SHASANA 2000)
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6 Shops and Commercial Establishments [1962: KAR. ACT 8

VIII
Amending Act 14 of 2002.- Section 25 of the Karnataka Shops and Commercial
Establishments Act, 1961 prohibits employment of women and young persons
during night. Establishments of Information Technology or Information Technology
enabled service. develop software for foreign customers. The personnel in these
establishments often work late in the night. The Personnel have to interact with
their customers late in evenings or throughout the night depending upon the global
part of the Country. These establishments employ good number of women workers.
As section 25 prohibits emplotment of women during night it has affected working of
the establishments. Software development is usually entrusted to a team which
may also include women employees.
Therefore, in order to utilise the Services of women employees during night it is
considered necessary to amend section 25 to empower the State Government to
exempt any establishment of Information Technology or Information Technology
enabled services from the provisions of that section relating to employment of
women during night subject to the condition that the establishments provides
facilities of transportation and security to such women employees.
Hence the Bill.
(Vide L.A. Bill No. 16 of 2002 File No. SAMVYASHAE 28 SHASANA 2001 DT:
30.8.2002)
IX

Amending Act 28 of 2005.- To avoid undue hardship to the owners of the

shops and commercial establishments, in registering their establishments
and also in renewal of their registration certificates it is proposed to amend
section 4 of the Shops and Commercial Establishments Act, 1961 and to
provide for deemed registration or renewal of registration certificate, in case
the area Labour Inspector does not register or renew or fails to
communicate the grounds on which registratiion/renewal was not done
within thirty days from the date of receipt of such applications.

Provision is also made to impose penalty for false claim of the

benefit of deemed registration with an imprisonment of not less than six
months and with a fine which may extend to five thousand rupees.
Hence, the Bill.
(LA Bill No.15 of 2005)
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1962: KAR. ACT 8] Shops and Commercial Establishments 7

1
[KARNATAKA ACT]1 No. 8 OF 1962
(First published in the 1[Karnataka Gazette]1 on the First day of March,
1962.)
THE 1[KARNATAKA]1 SHOPS AND COMMERCIAL ESTABLISHMENTS
ACT, 1961.
(Received the assent of the President on the Fifteenth day of February,
1962.)
(As amended by Acts 36 of 1966, 4 of 1969, 33 of 1982, 17 of 1986 , 25 of
1997, 11 of 2001, 14 of 2002 and 28 of 2005)
An Act to provide for the regulation of conditions of work and employment
in shops and commercial establishments.
WHEREAS it is expedient to provide for the regulation of conditions of work
and employment in shops and commercial establishments and other
incidental matters;
BE it enacted by the 1[Karnataka State]1 Legislature in the Twelfth Year of
the Republic of India as follows:
1. Adopted by the Karnataka adaptations of laws order 1973 w.e.f. 1.11.1973

CHAPTER I
PRELIMINARY

1. Short title, extent, commencement and application. (1) This Act

may be called the 1[Karnataka]1 Shops and Commercial Establishments Act,
1961.
1. Adopted by the Karnataka adaptations of laws order 1973 w.e.f. 1.11.1973

(2) It extends to the whole of the 1[State of Karnataka]1.

1. Adopted by the Karnataka adaptations of laws order 1973 w.e.f. 1.11.1973

(3) It shall come into force on such 1[date]1 as the State Government may
by notification appoint.
1. Act came into force w.e.f. 1.10.1964 by notification. Text of notification is at the end of the Act.
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8 Shops and Commercial Establishments [1962: KAR. ACT 8

(4) (a) It shall apply, in the first instance, to the areas specified in the
Schedule to this Act, and to such other areas in which any of the Acts
repealed by section 42 applied.
(b) It shall apply to any other area with effect from such date as the
State Government may by notification specify which date shall not be earlier
than the expiry of three months from the date of publication of such
notification in the official Gazette.
2. Definitions.In this Act, unless the context otherwise requires,
(a) adult means a person who has completed his eighteenth year;
(b) apprentice means a person aged not less than 1[fourteen years]1,
who is employed whether on payment of wages or not for the purpose of
being trained in any trade, craft or employment in any establishment;
1. Substituted by Act 25 of 1997 w.e.f. 12.2.1998 by notification. Text of notification is at the end of
the Act.
1
[(ba) banking company means,
1. Sub clause (i) to (vi) inserted by act 33 of 1982 w.e.f. 4.12.1982 by notification. Text of notification
is at the end of the Act.

(i) the Reserve Bank of India;

(ii) the Banking Company as defined under the Banking Regulations,
Act, 1949;
(iii) the State Bank of India constituted under the State Bank of India
Act, 1955;
(iv) a Subsidiary Bank as defined in the State Bank of India
(Subsidiary Banks) Act, 1959;
(v) a corresponding new bank constituted under the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970;
(vi) a corresponding new bank constituted under the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1980.]1
(c) child means a person who has not completed his 1[fourteenth
year]1;
1. Substituted by Act 25 of 1997 w.e.f. 12.2.1998.
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1962: KAR. ACT 8] Shops and Commercial Establishments 9

(d) closed means not open for the service of any customer or for any
business connected with the establishment;
(e) 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 cafe 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;
(f) day means a period of twenty-four hours beginning at midnight:
Provided that in the case of an employee whose hours of work extend
beyond midnight, day means a period of twenty-four hours beginning from
the time when such employment commences irrespective of midnight;
(g) 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 employers family; and employed shall be construed
accordingly;
(h) employer means a 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 or other person acting in the
general management or control of an establishment;
(i) establishment means a shop or a commercial establishment;
(j) family in relation to an employer means the husband or wife, son,
daughter, father, mother, brother or sister of such employer who lives with
and is dependent on him;
(k) Inspector means an Inspector appointed under section 26 and
includes the Chief Inspector and an Assistant Inspector;
(l) leave means leave provided for in Chapter IV of this Act;
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10 Shops and Commercial Establishments [1962: KAR. ACT 8

(m) night means a period of at least twelve consecutive hours which

shall include the interval between 8 P.M. and 6 A.M.;
(n) notification means a notification published in the official Gazette;
(o) opened means opened for the service of any customer or for any
business, connected with the establishment;
(p) period of work means the time during which an employee is at the
disposal of the employer;
(q) prescribed means prescribed by rules made under this Act;
1
[(r) x x x]1
1. Omitted by Act 36 of 1966 w.e.f. 25.4.1969 by notification. Text of notification is at the end of the
Act.

(s) register of establishments means a register maintained for the

registration of establishments under this Act;
(t) registration certificate means a certificate showing the registration
of an establishment;
(u) 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 fall within the scope of the Factories Act,
1948;
(v) spread over means the period between the commencement and
the termination of the work of an employee on any day;
(w) wages shall have the meaning assigned to it in the Payment of
Wages Act, 1936 (Central Act IV of 1936);
(x) week means a period of seven days beginning at midnight of
Saturday or such other night as may be approved in writing for a particular
area by the prescribed authority;
(y) year means the year commencing on the first day of January;
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1962: KAR. ACT 8] Shops and Commercial Establishments 11

(z) young person means a person who is not a child and who has not
completed his eighteenth year.
3. Exemptions.(1) Nothing in this Act shall apply to,-
(a) offices of or under the Central or State Governments or local
authorities, except commercial undertakings;
(b) any railway service, water transport service, postal, telegraph or
telephone service, any system of public conservancy or sanitation or any
industry, business or undertaking which supplies power, light or water to the
public;
(c) railway dining cars;
(d) establishments for the treatment or care of the sick, infirm, or the
mentally unfit;
1
[(dd) establishments of the Food Corporation of India;]1
1. Inserted by Act 17 of 1986 w.e.f. 8.5.1986.

(e) offices of legal practitioners and medical practitioners in which not

more than three persons are employed;
(f) offices of 1[a banking company]1;
1. Substituted by Act 33 of 1982 w.e.f. 4.12.1982.

(g) any person employed about the business of any establishment

mentioned in clauses (a) to (f) aforesaid;
(h) persons occupying positions of management in any
establishment;
(i) persons whose work is inherently intermittent such as drivers,
care-takers, watch and ward staff, or canvassers; and
(j) persons directly engaged in preparatory or complementary work,
such as, clearing and forwarding clerks responsible for the despatch of
goods.
(2) Nothing contained in section 11 or sub-section (1) of section 12 shall
apply to,-
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12 Shops and Commercial Establishments [1962: KAR. ACT 8

(a) shops dealing mainly in medicines or medical or surgical

requisites or appliances;
(b) clubs, residential hotels, boarding houses, hostels attached to
schools or colleges, and establishments maintained in boarding schools in
connection with the boarding and lodging of pupils and resident-masters;
Explanation.residential hotel means any premises in which business
is carried on bona fide for the supply of dwelling accommodation and meals
on payment of a sum of money to a traveller or any member of the public or
class of the public.
(c) stalls and refreshment rooms at railway stations, bus stands, ports
or aerodromes;
(d) shops of barbers and hairdressers;
(e) shops dealing mainly in meat, fish, poultry, eggs, dairy produce
(except ghee), bread, confectionery, sweets, chocolates, ice, ice
cream, cooked food, fruits, flowers, vegetables or green fodder;
(f) shops dealing in articles required for funerals, burials or
cremations;
(g) shops dealing in pan (betel leaf), pan with beedies or cigarettes,
or liquid refreshments sold retail for consumption on the premises;
(h) shops dealing in newspapers or periodicals, editing sections of
newspaper offices and offices of news agencies;
(i) cinemas, theatres and other places of public entertainment and
stalls and refreshment rooms attached to such cinemas, theatres
and places of public entertainment;
(j) establishments for the retail sale of petrol;
(k) shops in regimental institutes, garrison shops and troop canteens
in cantonments;
(l) tanneries;
(m) retail trade carried on at an exhibition or show, if such retail trade
is subsidiary or ancillary only to the main purpose of the exhibition
or show;
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1962: KAR. ACT 8] Shops and Commercial Establishments 13

(n) oil-mills and flour-mills not registered under the Factories Act,
1948;
(o) brick and lime kilns;
(p) commercial establishments engaged in the manufacture of bronze
and brass utensils so far as it is confined to the process of melting
in furnaces.
1
[(q) Information Technology Establishments;
(r) Information Technology enabling services or establishments;
(s) Bio-Technology and Research Centres or establishments of
epidemic and other diseases.]1
1. Inserted by Act 11 of 2001 w.e.f. 1.6.2001 by notification. Text of notification is at the end of the
Act.

(3) Notwithstanding anything contained in sub-section (1) or sub-section

(2), the State Government may by notification declare that any
establishment or person specified therein shall not be exempt from the
operation of such provisions of this Act as may be specified in the
notification and that the provisions of this Act specified in such notification
shall apply to such establishment or person.
(4) The State Government may by notification exempt establishments
where the nature of work is,-
(i) intermittent, or
(ii) seasonal, or
(iii) for a short duration, not exceeding two months, and it is difficult
to enforce the provisions of this Act,
-from all or any of the provisions of this Act subject to such conditions as
may be specified in the notification.
CHAPTER II
REGISTRATION OF ESTABLISHMENTS

4. Registration of Establishments.(1) Within the period specified in

sub-section (3), the employer of every establishment shall send to the
Inspector of the area concerned, a statement in the prescribed form together
with such fees as may be prescribed, containing,
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14 Shops and Commercial Establishments [1962: KAR. ACT 8

(a) the name of the employer and the manager, if any;

(b) the postal address of the establishment;
(c) the name, if any, of the establishment; and
(d) such other particulars as may be prescribed.
(2) On receipt of the statement and the fees, the Inspector shall, on being
satisfied about the correctness of the statement, register the establishment
in the register of establishments in such manner as may be prescribed, and
shall issue, in a prescribed form, a registration certificate to the employer.
The registration certificate shall be prominently displayed at the
establishment.
(3) Within thirty days from the date mentioned in column (2) below in
respect of an establishment mentioned in column (1), the statement together
with fees shall be sent to the Inspector under sub-section (1).
Establishments. Date from which the period of thirty
days to commence.
(1) (2)
(i) Establishment existing (i) The date on which this Act
on the date on which this comes Into force.
Act comes into force.
(ii) New establishments. The (ii)
date on which the
establishment commences its
work.
1
[(3A) In case the Inspector is not satisfied about the correctness of the
statement together with fees under sub-section (3) shall within thirty days
from the date of receipt of the same communicate to the employer his
decision for refusing to register the establishment with the reasons therefor,
failing which the establishment shall be deemed to have been registered.]1
1. Sub-section (3A) inserted by Act 28 of 2005 by notification. The Act is yet to be brought into force.

[(4) A registration certificate issued under sub-section (2), shall be valid

1

for 2[five years]2 and shall be renewed 2[before the expiry of the period of
registration certificate]2 on payment of such fees and in such manner as may
be prescribed.
1. Sub-sections 4 and 5 inserted by Act 33 of 1982 w.e.f. 4.12.1982.
2. Substituted by Act 25 of 1997 w.e.f. 12.2.1998.
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1962: KAR. ACT 8] Shops and Commercial Establishments 15

1
[(5) The registration certificate issued or renewed before the
commencement of the Karnataka Shops and Commercial Establishments
(Amendment) Act, 1997 shall, on such commencement, continue to be valid
till the expiry of the period of registration certificate already granted and the
employer of every such establishment shall renew his registration certificate
before the expiry of such period in accordance with sub-section (4).]1]1
1. Substituted by Act 25 of 1997 w.e.f. 12.2.1998.
1
[(6) In case the Inspector is not satisfied about the correctness of the
statement or the renewal application or the payment fee prescribed or any
other condition of renewal shall within thirty days from the date of receipt of
statement together with fees from the employer seeking renewal of
registration certificate communicate to the employer his decision for refusing
to renew the registration with the reasons therefor, failing which the
registration certificate shall be deemed to have been renewed.
(7) In case the certificate of registration or renewal of registration is
not received by any employer within the period specified in sub-section (3A)
or (6), the employer shall display a self-certification statement sent by
Registered Post with Acknowledgement Due to the Registering Authority for
registration or renewal, as the case may be, along with the
acknowledgement to that effect stating that he has got the deemed benefit.
In case the certificate of registration or renewal of registration as the case
may be, is received by the employer subsequently, such self certification
shall be replaced with a regular certificate as soon as the same is received.
(8) If any employer has falsely claimed the benefit of deemed
registration and has displayed such self certificate under sub-section (7), he
shall on conviction be punished with an imprisonment of not less than six
months and with a fine which may extend to five thousand rupees]1
1. Sub-sections (6) (7)& (8) inserted by Act 28 of 2005 by notification. The Act is yet to be brought
into force.

5. Change to be communicated to Inspector.It shall be the duty of

an employer to notify to the Inspector, in the prescribed form, any change in
respect of any information contained in his statement under section 4, within
fifteen days after the change has taken place. The Inspector shall, on
receiving such notice and on being satisfied about its correctness, make the
change in the register of establishments and shall amend the registration
certificate or issue a fresh registration certificate, if necessary.
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16 Shops and Commercial Establishments [1962: KAR. ACT 8

6. Closing of establishment to be communicated to Inspector.The

employer shall, within fifteen days of his closing the establishment, notify to
the Inspector in writing the date of such closure and return the registration
certificate. The Inspector shall, on receiving the information and being
satisfied about its correctness, remove such establishment from the register
of establishments and cancel the registration certificate:
Provided that if the Inspector does not receive the information, but is
otherwise satisfied that the establishment has been closed, he may remove
such establishment from such register.
[6A. Issue of appointment orders.Every employer, employing any
1

person in or in connection with his establishment, shall issue an

appointment order in writing indicating the name, designation, wage scale of
such person and terms and conditions of his employment and serve the
same on such person within thirty days from the date of appointment in his
establishment:
1. Inserted by Act 25 of 1997 w.e.f. 12.2.1998.

Provided that in case of employees appointed in any establishment prior

to the commencement of the Karnataka Shops and Commercial
Establishments (Amendment) Act, 1997, the employer of such
establishment shall, if he has not yet issued any appointment order in writing
to such employee, communicate in writing to the employee incorporating
therein his name, designation and wage scale and the terms and conditions
of employment and serve the same on him within thirty days from the date
of such commencement.]1
CHAPTER III
HOURS OF WORK

7. Daily and weekly hours.(1) No employee in any establishment

shall be required or allowed to work for more than nine hours on any day
and forty-eight hours in any week:
Provided that the total number of hours of work including overtime shall
not exceed ten hours in any day except on days of stock-taking and
preparation of accounts:
Provided further that the total number of overtime hours worked by an
employee does not exceed fifty in a period of three continuous months.
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1962: KAR. ACT 8] Shops and Commercial Establishments 17

(2) No young person 1[x x x]1 shall be allowed to work in any

establishment for more than five hours in a day.
1. Omitted by Act 25 of 1997 w.e.f. 12.2.1998.

8. Extra wages for overtime work.(1) Where an employee works in

any establishment for more than nine hours in any day or for more than
forty-eight hours in any week he shall in respect of such overtime work be
entitled to wages at twice the rate of normal wages.
(2) For the purposes of this section normal wages means the basic
wages plus such allowances, including the cash equivalent of the advantage
accruing through the concessional sale to workers of food grains and other
articles, as the worker is for the time being entitled to, but does not include a
bonus.
(3) The cash equivalent of the advantage accruing through the
concessional sale to a worker of food grains and other articles shall be
computed as often as may be prescribed on the basis of the maximum
quantity of food grains and other articles admissible to a standard family.
Explanation 1.standard family means a family consisting of an
employee, his or her spouse and two children below the age of fourteen
years requiring in all three adult consumption units.
Explanation 2.adult consumption unit means the consumption unit of
a male above the age of fourteen years; and the consumption unit of a
female above the age of fourteen years and that of a child below the age of
fourteen years shall be calculated at the rates of .8 and .6 respectively of one
adult consumption unit.
(4) The State Government may make rules prescribing,-
(a) the manner in which the cash equivalent of the advantage accruing
through the concessional sale to a worker of food grains and other
articles shall be computed;
(b) the registers that shall be maintained in an establishment for the
purpose of securing compliance with the provisions of this section.
9. Interval for rest.The periods of work of an employee in an
establishment each day shall be so fixed that no period shall exceed five
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18 Shops and Commercial Establishments [1962: KAR. ACT 8

hours and that no such person shall work for more than five hours before he
has had an interval of rest of at least one hour.
10. Spreadover.The periods of work of an employee in an
establishment shall be so fixed that, inclusive of his interval for rest, they
shall not spreadover more than twelve hours in any day.
11. Opening and closing hours.(1) No establishment shall on any
day, be opened earlier than and closed later than such hours as may be
fixed by a notification issued by the State Government:
Provided that any customer who was being served or was waiting to be
served in any establishment at the hour fixed for its closing may be served
during the quarter of an hour immediately following such hour.
(2) Before issuing a notification under sub-section (1), the State
Government shall hold an enquiry in the prescribed manner.
(3) The State Government may, for the purpose of this section, fix
different hours for different establishments or different classes of
establishments or for different areas or for different times of the year.
12. Weekly Holidays.(1) Every establishment shall remain closed for
one day of the week. The employer shall fix such date at the beginning of
the year, 1[or within thirty days from the date of commencement of
establishments, as the case may be]1 notify it to the Inspector and specify it
in a notice prominently displayed in a conspicuous place in the
establishment. The employer shall not alter such date more often than once
in three months, shall notify the alteration to the Inspector, and shall make
the necessary change in the notice in the establishment.
1. Inserted by Act 25 of 1997 w.e.f. 12.2.1998.

(2) Notwithstanding anything contained in sub-section (1), the State

Government may allow an establishment to remain open throughout the
week if it is satisfied that the establishment employs additional staff for
meeting the requirements of sub-section (3) of this section.
(3) Every employee in an establishment shall be given at least one whole
day in a week as a holiday for rest:
Provided that in establishments in which rest for one-and-a-half days in a
week is allowed, such period of rest shall be continued.
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1962: KAR. ACT 8] Shops and Commercial Establishments 19

(4) It shall not be lawful for an employer to call an employee at, or for an
employee to go to, his establishment or any other place for any work in
connection with the business of his establishment on a weekly holiday given
to the employee under sub-section (3) or on a day on which such
establishment remains closed.
(5) No deduction shall be made from the wages of an employee in any
establishment on account of the holiday given to him under sub-section (3).
If any employee is employed on daily wages, he shall nonetheless be paid
his wages for the weekly holiday.
13. Selling outside establishments prohibited after closing hours.
Save as provided by or under any other enactment for the time being in
force, 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 for the closing of
establishments dealing in the same class of goods in the locality in which
such street or public place is situated:
Provided that nothing in this section shall apply to the sale of newspapers
and such other articles as may be exempted by notification by the State
Government.
CHAPTER IV
ANNUAL LEAVE WITH WAGES

14. Application of Chapter.The provisions of this Chapter shall not

operate to the prejudice of any rights to which an employee may be entitled
under any other law or under the terms of any award, agreement or contract
of service:
Provided that where such award, agreement or contract of service
provides for a longer leave with wages or weekly holidays than are provided
in this Chapter, the employee shall be entitled to only such longer leave or
weekly holidays, as the case may be.
15. Annual leave with wages.1[(1) Every employee in an
establishment shall be entitled to leave with wages and shall be allowed to
avail such leave for the number of days calculated at the rate of,-
(i) one day for every twenty days work performed by him, in case of
an adult;
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20 Shops and Commercial Establishments [1962: KAR. ACT 8

(ii) one day for every fifteen days of work performed by him, in case
of a young person;
Explanation: For the purpose of this sub-section,
(a) any day of lay-off, by agreement or contract as permissible under the
standing order or for any other reasons beyond the employers
control;
(b) in the case of female employee, maternity leave for any number of
days not exceeding twelve weeks; and
(c) the leave earned in the year prior to that in which the leave is
enjoyed:
-shall be deemed to be days on which the employee has worked in an
establishment for the purposes of computation of leave under this section,
but the employee shall not earn leave for that period.]1
1. Substituted by Act 25 of 1997 w.e.f. 12.2.1998.
1
[(2) x x x]1
1. Omitted by Act 25 of 1997 w.e.f. 12.2.1998.

(3) Every employee shall also be entitled during the first twelve months of
continuous service and during every subsequent twelve months of such
service in any establishment to leave with wages for a period not exceeding
twelve days, on the ground of any sickness incurred or accident sustained
by him or for any other reasonable cause.
(4) If an employee is discharged or dismissed from service during the
course of the year he shall be entitled to leave with wages at the rates laid
down in sub-section (1) even if he has not worked for the entire period
specified in sub-section (1) 1[x x x]1 entitling him to earn leave.
1. Omitted by Act 25 of 1997 w.e.f. 12.2.1998.

(5) If an employee entitled to any leave under sub-section (3) is

discharged or dismissed from service when he is sick or suffering from the
result of an accident, the employer shall pay him the amount payable under
this Act in respect of the period of the leave to which he was entitled at the
time of his discharge or dismissal, in addition to the amount, if any, payable
to him under sub-section (4).
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1962: KAR. ACT 8] Shops and Commercial Establishments 21

(6) In calculating leave under this section, fraction of leave of half a day
or more shall be treated as one full days leave, an fraction of less than half
a day shall be omitted.
(7) If an employee does not in any one calendar year take the whole of
the leave allowed to him under sub-section (1) or sub-section (2), as the
case may be, any leave not taken by him shall be added to the leave to be
allowed to him in the succeeding calendar year:
Provided that the total number of the days of leave that may be carried
forward to a succeeding year shall not exceed thirty days in the case of an
adult and forty days in the case of a young person:
Provided further that an employee who has applied for leave with wages
but has not been given such leave in accordance with any scheme laid
down in sub-sections (10) and (11) shall be entitled to carry forward the
unavailed leave without any limit.
(8) An employee may at any time apply in writing to the manager of the
establishment, not less than ten days before the date on which he wishes
his leave to begin, to take all the leave or any portion thereof allowable to
him during the calendar year:
Provided that the number of times in which leave may be taken during
any year shall not exceed three or such number as may be agreed upon
between the employer and the employee.
(9) If any employee wants to avail himself of the leave with wages due to
him under sub-section (3), he shall be granted such leave even if the
application for leave is not made within the time specified in sub-section (8),
and in such a case wages as admissible under section 17 shall be paid not
later than fifteen days from the date on which the leave begins.
(10) For the purpose of ensuring continuity of work in an establishment,
the employer in agreement with the representatives of employees therein,
chosen in the prescribed manner, may formulate a scheme in writing
whereby the grant of leave allowable under this section may be regulated.
(11) A scheme formulated under sub-section (10) shall be posted in
convenient places in the premises of the establishment and shall be in force
for a period for twelve months from the date on which it comes into force
and may thereafter be renewed, with or without modification, for a further
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22 Shops and Commercial Establishments [1962: KAR. ACT 8

period of twelve months at a time by the employer in agreement with the

representatives of the employees as specified in sub-section (10).
(12) An application for leave which does not contravene the provisions of
sub-section (8) shall not be refused, unless the refusal is in accordance with
the scheme for the time being in operation under sub-sections (10) and (11).
(13) If the employment of an employee who is entitled to leave under
sub-section (1) 1[x x x]1 is terminated by the employer before he has taken
the entire leave to which he is entitled or if having applied for and having not
been granted such leave, the employee quits his employment before he has
taken the leave, the employer shall pay him the amount payable under
section 16 in respect of the leave not taken, and such payment shall be
made, where the employment of the employee is terminated by the
employer, before the expiry of the second working day after such
termination, and where an employee quits his employment, on or before the
next pay day.
1. Omitted by Act 25 of 1997 w.e.f. 12.2.1998.

(14) The unavailed leave of an employee shall not be taken into

consideration in computing the period of any notice required to be given
before discharge or dismissal.
16. Wages during leave period.(1) For the leave allowed to him under
section 15, an employee shall be paid at the rate equal to the daily average
of his total full-time earnings for the days on which he worked during the
month immediately preceding his leave, exclusive of any overtime wages
and bonus but inclusive of dearness allowance and the cash equivalent of
the advantage accruing through the concessional sale to the employee of
foodgrains and other articles.
(2) The cash equivalent of the advantage accruing through the
concessional sale to the employee of foodgrains and other articles shall be
computed as often as may be prescribed on the basis of the maximum
quantity of foodgrains and other articles admissible to a standard family.
Explanation.The explanations to sub-section (3) of section 8 shall be
applicable for purposes of determining standard family under this sub-
section.
17. Payment in advance in certain cases.An employee who has
been allowed leave for not less than four days in the case of an adult, and
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1962: KAR. ACT 8] Shops and Commercial Establishments 23

for not less than five days in the case of a young person, shall before his
leave begins, be paid the wages due for the period of leave allowed.
18. Mode of recovery of unpaid wages.Any sum required to be paid
by an employer under this Chapter but not paid by him shall be recoverable
as delayed wages under the provisions of the Payment of Wages Act, 1936
(Central Act IV of 1936).
19. Power to make rules.The State Government may, to carry out the
purposes of this Chapter, make rules directing employers to keep registers
containing such particulars as may be prescribed and requiring the registers
to be made available for examination by Inspectors.
20. Power to exempt establishment.Where the State Government is
satisfied that the leave rules applicable to employees in an establishment
provide benefits which in its opinion are not less favourable than those for
which this Chapter makes provision, it may, by notification, exempt the
establishment from all or any of the provisions of this Chapter, subject to
such conditions as may be specified in the notification.
CHAPTER V
1
[WAGES AND COMPENSATION]1
1. Substituted by Act 4 of 1969 w.e.f. 16.5.1969 by notification. Text of notification is at the end of the
Act.

21. Application of the Payment of Wages Act.(1) Notwithstanding

anything contained in the Payment of Wages Act, 1936 (Central Act IV of
1936) (referred to in this section as the said Act), the State Government
may, by notification, direct that subject to the provisions of sub-section (2),
the said Act or any of the provisions thereof as in force on the date of
passing of this Act by the State Legislature shall apply to all or any class of
employees and their employers in establishments to which this Act applies,
and thereupon, the said Act or the provisions thereof shall be applicable to
the employers and employees, as if enacted in this Act.
(2) On the application of the provisions of the said Act to any
establishment under sub-section (1), the Inspector appointed under this Act
shall be deemed to be the Inspector for the purpose of the enforcement of
the provisions of the said Act within the local limits of his jurisdiction.
22. Application of the Workmens Compensation Act.The
provisions of the Workmens Compensation Act, 1923 (Central Act VIII of
1923), as in force on the date of passing of this Act by the State Legislature,
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24 Shops and Commercial Establishments [1962: KAR. ACT 8

and the rules made thereunder by the State Government for the time being
in force shall mutatis mutandis apply to employees and employers of shops
and commercial establishments.
1
[23. x x x]1
1. Omitted by Act 4 of 1969 w.e.f. 16.5.1969.

CHAPTER VI
EMPLOYMENT OF CHILDREN AND WOMEN

24. Prohibition of employment of children.No child shall be required

or allowed to work in any establishment.
25. Prohibition of employment of women and young persons during
night.No woman, or a young person 1[x x x]1, shall be required or allowed
to work whether as an employee or otherwise in any establishment during
night:
1. Omitted by Act 25 of 1997 w.e.f. 12.2.1998.
1
[Provided that the State Government may, by notification exempt any
establishment of Information Technology or Information Technology enabled
service from the provisions of this section relating to employment of women
during night subject to the condition that the establishment provides facilities
of transportation and security to such women employees and subject to any
1
other condition as may be specified in the notification.]
1. Inserted by Act 14 of 2002 w.e.f. 2.11.2002 by notification. Text of notification is at the end of the
Act.

CHAPTER VII
ENFORCEMENT AND INSPECTION

26. Inspectors.(1) The State Government may by notification appoint

such persons or such class of persons as it thinks fit, to be Inspectors and
Assistant Inspectors for the purposes of this Act within such local limits as it
may assign to them respectively.
[(2) The State Government may, by notification, appoint such public
1

officers as it thinks fit to be additional Inspectors for all or any of the

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1962: KAR. ACT 8] Shops and Commercial Establishments 25

purposes of this Act, within such local limits as it may assign to them
respectively.
1. Sub-sections (2) to (4) substituted by Act 4 of 1969 w.e.f. 16.5.1969.

(3) In any area where there are more Inspectors than one, the State
Government may, by notification, declare the powers which such Inspectors
shall respectively exercise.
(4) The 1[Commissioner of Labour in Karnataka]1 shall be the Chief
Inspector for the purposes of this Act, for the whole of the 1[State of
Karnataka]1.]1
1. Adapted by the Karnataka adaptations of laws order 1973 w.e.f. 1.11.1973.

27. Powers and duties of Inspectors.Subject to any rules made by

the State Government in this behalf, an Inspector may, within the area in his
jurisdiction,
(a) enter, at all reasonable times and with such assistants, if any, being
persons in the service of the State Government, as he thinks fit, any place
which is or which he has reasons to believe is, an establishment;
(b) make such examination of the premises and of any prescribed
registers, records and notices, and take on the spot or otherwise, evidence
of any person as he may deem necessary, for carrying out the purposes of
this Act; and
(c) exercise such other powers as may be necessary for carrying out the
purposes of this Act:
Provided that no person shall be required under this section to answer
any question or give any evidence tending to incriminate himself.
28. Inspectors to be public servants.Every person appointed or
declared under section 26 to be an Inspector shall be deemed to be a public
servant within the meaning of section 21 of the Indian Penal Code.
29. Employer to produce registers, records, etc., for inspection.
Every employer shall on demand, produce for inspection of an Inspector, all
registers, records and notices required to be kept under and for the
purposes of this Act.
CHAPTER VIII
OFFENCES, PENALTIES AND PROCEDURE
30. Penalties.(1) Whoever contravenes any of the provisions of
section 4, 5, 6, 1[6A]1 7, 9, 10, 11, 12, 13, 15, 16, 2[x x x]2 25 and 39, shall,
 LatestLaws.com

26 Shops and Commercial Establishments [1962: KAR. ACT 8

on conviction, be punished with fine, which, for a first offence, may extend to
3
[one thousand rupees]3 and, for a second or any subsequent offence, may
extend to 3[two thousand rupees]3.
1. Inserted by Act 25 of 1987 w.e.f. 12.2.1998..
2. Omitted by Act 25 of 1997 w.e.f. 12.2.1998.
3. Substituted by Act 25 of 1997 w.e.f. 12.2.1998.

(2) Whoever contravenes any of the provisions of sections 8, 17, 29 and

34 shall, on conviction, be punished with a fine which may extend to 1[two
hundred and fifty rupees]1.
1. Substituted by Act 25 of 1997 w.e.f. 12.2.1998.

[(3) Whoever contravenes the provisions of section 24, shall be

1

punishable with imprisonment for a term which shall not be less than three
months but which may extend to six months or with fine which shall not be
less than ten thousand rupees, but which may extend to twenty thousand
rupees or with both, for the first offence and for the second and subsequent
offences, he shall be punishable with imprisonment of a term which shall not
be less than six months but which may extend to one year.]1
1. Inserted by Act 25 of 1987 w.e.f. 12.2.1988..

31. Procedure.(1) No prosecution under this Act or the rules or orders

made thereunder shall be instituted save on a complaint in writing by an
Inspector.
(2) No court inferior to that of a Magistrate of the Second Class shall try
any offence punishable under this Act or any rules or orders made
thereunder.
32. Limitation of prosecutions.No court shall take cognizance of any
offence under this Act or any rule or order made thereunder, unless
complaint thereof is made within six months from the day on which the
offence is alleged to have been committed.
33. Penalty for obstructing Inspectors, etc.Any person who wilfully
obstructs an Inspector in the exercise of any power conferred on him under
this Act, or any person lawfully assisting an Inspector in the exercise of such
power or who fails to comply with any lawful direction made by an Inspector,
shall be punishable with fine which may extend to 1[five hundred rupees]1.
1. Substituted by Act 25 of 1997 w.e.f. 12.2.1998.
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1962: KAR. ACT 8] Shops and Commercial Establishments 27

CHAPTER IX
MISCELLANEOUS

34. Maintenance of registers and records and display of notices.

Subject to the general or special orders of the State Government, an
employer shall maintain such registers and records and display on the
premises of his establishment, such notices as may be prescribed. All such
registers and records shall be kept on the premises of the establishment to
which they relate.
35. Saving of certain rights and privileges.Nothing in this Act shall
affect any rights or privileges which an employee in any establishment is
entitled to under any other law, contract, custom or usage, applicable to
such establishment, or any award, settlement or agreement binding on the
employer and the employee in such establishment, if such rights or
privileges are more favourable to him than those to which he would be
entitled under this Act.
36. Indemnity.No suit, prosecution or other legal proceedings shall lie
against the State Government or any officer of the State Government for
anything which is in good faith done or intended to be done under this Act.
37. Delegation of powers.(1) The State Government may, by
notification, authorize any officer or authority, subordinate to it, to exercise
any one or more of the powers vested in it by or under this Act, except the
powers under sub-sections (3) and (4) of section 1, sub-sections (3) and (4)
of section 3, section 19, section 20, section 21, section 26 and section 40
subject to such restrictions and conditions, if any, as may be specified in the
notification.
(2) The exercise of the powers delegated under sub-section (1) shall be
subject to control and revision by the State Government or by such persons
as may be empowered by it in that behalf. The State Government shall also
have power to control and revise the acts and proceedings of any person so
empowered.
38. Power of Government to suspend provisions of the Act during
fairs and festivals.On any special occasion in connection with a fair or
festival or a succession of public holidays, the State Government may, by
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28 Shops and Commercial Establishments [1962: KAR. ACT 8

notification, suspend for a specified period the operation of all or any of the
provisions of this Act.
39. Notice of dismissal.(1) No employer shall remove or dismiss an
employee who has put in service under him continuously for a period of not
less than six months, except for a reasonable cause and unless and until
one months previous notice or pay in lieu thereof has been given to him:
Provided that where misconduct of an employee is brought on record
with proof at an enquiry held for the purpose, he shall not be entitled to the
notice or pay in lieu of such notice.
(2) An employee removed or dismissed under sub-section (1) shall have
a right of appeal to 1[such officers having jurisdiction over such areas or
such classes of employees as may be prescribed]1 on the ground that there
was no reasonable cause for the removal or dismissal or that he has not
been guilty of misconduct as held by the employer.
1. Substituted by Act 36 of 1966 w.e.f. 25.4.1969.

(3) Where an employee has been removed or dismissed without

reasonable cause or without proof of misconduct, the employee shall, where
the employer does not agree to reinstate him, be entitled to such
compensation as the appellate authority may determine, provided that such
compensation shall not exceed an amount calculated at one months pay for
every year of service 1[x x x]1.
1. Omitted by Act 25 of 1997 w.e.f. 12.2.1998.

(4) Any person aggrieved by an order of the appellate authority may

apply to the District Judge for a revision of such order and subject to the
result of such application the decision of the appellate authority shall be final
and binding on both the employer and the person employed.
(5) The amount payable as compensation under this section shall be in
addition to any fine payable under section 30 and shall be recoverable as a
fine.
(6) No employee who has been awarded compensation under this
section shall be entitled to bring a civil suit in respect of the same claim.
(7) If under any other law or under the terms of an award, agreement or
contract of service, any employee is entitled to a longer period of notice or to
more favourable benefits that are provided in sub-section (1) or sub-section
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1962: KAR. ACT 8] Shops and Commercial Establishments 29

(3) the provisions of the said sub-sections shall have effect as if such period
of notice and such benefits had been enacted in this Act.
40. Power to make rules.(1) The State Government may by
notification, make rules to carry out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing
power, rules made under sub-section (1) may provide in respect of the
health and safety and welfare of employees.
(3) In making rules under this section, the State Government may provide
that a contravention of any rule shall be punishable with a fine which may
extend to 1[two hundred and fifty rupees]1.
1. Substituted by Act 25 of 1997 w.e.f. 12.2.1998.

(4) The power to make rules conferred by this section is subject to the
condition of the rules being made after previous publication.
41. Notifications and rules to be laid before the State Legislature.
Every notification issued under sub-section (3) and sub-section (4) of
section 3, sub-section (1) of section 21 and sub-section (1) of section 37
and every rule made under section 40 shall be laid as soon as may be after
it is issued or made before each House of the State Legislature while it is in
session for a total period of thirty days which may be comprised in one
session or in two successive sessions and if before the expiry of the session
in which it is so laid or the session immediately following, both Houses
agree in making any modification in the notification or rule or both Houses
agree that the notification or rule should not be made, the notification or rule,
as the case may be, shall thereafter have effect only in such modified form
or be of no effect, as the case may be; so however that any such
modification or annulment shall be without prejudice to the validity of
anything done previously under that notification or rule.
42. Repeal and savings.The Bombay Shops and Establishments Act,
1948 (Bombay Act LXXIX of 1948), as in force in the 1[Belgaum Area]1, the
Hyderabad Shops and Establishments Act, 1951 (Hyderabad Act X of
1951), as in force in the 1[Gulbarga Area]1, the Madras Shops and
Establishments Act, 1947 (Madras Act XXXVI of 1947), as in force in the
1
[Mangalore and Kollegal Area]1, and the Mysore Shops and Establishments
Act, 1948 (Mysore Act II of 1948), as in force in the Mysore Area, are hereby
repealed:
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30 Shops and Commercial Establishments [1962: KAR. ACT 8

Provided that section 6 of the 1[Karnataka]1 General Clauses Act, 1899

( [Karnataka Act]1 III of 1899) shall be applicable in respect of such repeal
1

and sections 8 and 24 of the said Act shall be applicable as if the said Acts
had been repealed and re-enacted by this Act.
1. Adapted by the Karnataka adaptation of laws order 1973 w.e.f. 1.11.1973.

43. Repeal of Central Act XVIII of 1942.On and from such date on
which this Act applies to any area of the State, the Weekly Holidays Act,
1942 (Central Act XVIII of 1942), shall in such area stand repealed:
Provided that such repeal shall not affect,-
(a) the previous operation of the said enactment or anything duly done
or suffered thereunder; or
(b) any right, privilege, obligation or liability acquired, accrued or
incurred under the said enactment; or
(c) any penalty, forfeiture or punishment incurred in respect of any
offence committed against the said enactment; or
(d) any investigation, legal proceeding or remedy in respect of any such
right, privilege, obligation, liability, forfeiture or punishment as
aforesaid;
-and any such investigation, legal proceeding or remedy may be instituted,
continued or enforced and any such penalty, forfeiture or punishment may
be imposed as if this Act had not been applied to that area.
44. Power to remove difficulties.If any difficulty arises in giving effect
to the provisions of this Act in consequence of the transition to the said
provisions from the provisions of the Acts in force immediately before the
commencement of this Act, the State Government may by notification, make
such provisions as appear to it to be necessary or expedient for removing
the difficulty.
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1962: KAR. ACT 8] Shops and Commercial Establishments 31

SCHEDULE
[See sub-section (4) of section 1]
Names of Places.
1. Arsikere Town. 41. Karkal.
2. Athani. 42. Karwar.
3. Bagalkot. 43. Kolar Town.
4. Bangalore City. 44. Kolar Gold Fields Area.
5. Bangarapet Town. 45. Kollegal.
6. Bantwal. 46. Koppal.
7. Belgaum. 47. Kottur Panchayat Area.
8. Belthangadi. 48. Kudligi Panchayat Area.
9. Bellary City. 49. Maddur.
10. Bhadravati Town. 50. Mahalingapur.
11. Bidar. 51. Malavalli.
12. Bijapur. 52. Mandya Town.
13. Chamarajanagar Town. 53. Madhugiri Town.
14. Channapatna. 54. Mangalore.
15. Chellakere Town. 55. Moodabidri.
16. Chickballapur Town. 56. Mulki.
17. Chikmagalur Town. 57. Mysore City.
18. Chintamani Town. 58. Nanjangud Town.
19. Chitradurga Town. 59. Nipani.
20. Coondapur. 60. Puttur.
21. Davanagere City. 61. RabkaviBanhatti.
22. Dharwar. 62. Raichur.
23. Doddaballapur Town. 63. Ramanagaram.
24. GadagBetgeri. 64. Sagar.
25. Gauribidanur Town. 65. Saklespur Town.
26. Gokak. 66. Sandur.
27. Gulbarga. 67. Shahabad.
28. Guledgud. 68. Shikaripur.
29. Hadagali Panchayat Area. 69. Shimoga Town.
30. Haranahalli Panchayat Area. 70. Siddalghatta.
31. Harihar Town. 71. Sira Town.
32. Hassan Town. 72. Sirsi.
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32 Shops and Commercial Establishments [1962: KAR. ACT 8

33. Hiriyur. 73. Siruguppa Panchayat Area.

34. Hospet Town. 74. Srinivaspur.
35. Hubli. 75. Srirangapatna.
36. Ilkal. 76. Thirthahalli.
37. Jamkhandi. 77. Tiptur Town.
38. Kamalapur Panchayat Area. 78. Tumkur Town.
39. Kampli Panchayat Area. 79. Udipi.
40. Kanakapura. 80. Yadgir.

NOTIFICATIONS
I
Bangalore, dated 29th August 1964 [No. PLM 119 LET 64]
S.O.No. 1195.- In exercise of the power conferred by sub-section (3) of
Section 1 of the Karnataka Shops and Commercial Establishments, Act,
1961(Karnataka Act 8 of 1962) read with section 31 of the Mysore General
Clauses Act, 1899 (Mysore Act 3 of 1899), and in modification of the
Notification No.IPM 119 LET 64, dated 29th May, 1964, the Government of
Karnataka hereby specified that the Karnataka Shops and Commercial
Establishments Act, 1961 (Karnataka Act 8 of 1962) shall come into force on
the 1st day of October 1964.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2C(ii), dated
29.08.1964 as No. 220.)
II
Bangalore, dated 16th April, 1969 [No.FCL 10 LSC 69]
S.O. No. 738.- In exercise of the powers conferred by sub-section (2) of
section 1 of the Mysore Shops and Commercial Establishments
(Amendment) Act, 1966 (Mysore Act No. 36 of 1966), the Government of
Mysore hereby appoints the 25th day of April 1969 as the date on which the
said Act shall come into force.
By Order and in the name of the Governor of Mysore,

(G.G. PUROHIT)
Under Secretary.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2C(ii),
dated 24th April 1969, at page. 1858.)
 LatestLaws.com

1962: KAR. ACT 8] Shops and Commercial Establishments 33

III
Bangalore, dated 7th May 1969. [NO. FCL 12 LSC 69]
S.O.No. 932.- In exercise of the powers conferred by sub-section (2) of
Section 1 of the Mysore Shops and Commercial Establishments
(Amendment) Act, 1969 (Mysore Act No.4 of 1969) the Government of
Mysore hereby appoints the 16th day of May, 1969 as the date on which the
said Act shall come into force.
By Order and in the name of the Governor of Mysore,
(G.G. PUROHIT)
Under Secretary
(Published in Karnataka Gazatte dated 15.05.1969 Part IV 2c (ii) at page
2263.)

IV
Bangalore, dated 4th December 1982,[No. SWL 6 LSC 82 (P. II)]
S.O. 2735.- In exercise of the powers conferred by sub-section (2) of
section 1 of the Karnataka Shops and Commercial establishments
(Amendment Act, 1982 Karnataka Act No. 33 of 1982), the Government of
Karnataka hereby notifies the Fourth Day of December, 1982 as the date on
which the said Act shall come into force.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A, dated
4th December 1982, as No. 849.)

v
g p , } d 31} %d D p 1997. [ f X 30 U U 97]
d }rd %g g y K mX Lg ({ M~ ) d{ 1997 (d }rd d{ f X
25 1997) y d _x { u g p { .
d }rd pmX~p AuC } p y K % p } [,
.} . d ,
dp { % } d { , d d Ef .
(d } rd p mX~ y Z, g p p , 12} Z 1998 g IV-2C (ii) p [ ~ Zd s{ .)

VI
Bangalore, dated 1st June 2001, [No. LD 188 LET 99(P)]
In exercise of the powers conferred by sub-section (2) of Section 1 of
the Karnataka Shops and Commercial Establishments (Amendment) Act,
2001 (Karnataka Act, 11 of 2001), the Government of Karnataka hereby
 LatestLaws.com

34 Shops and Commercial Establishments [1962: KAR. ACT 8

appoints the first day of June 2001 as the date on which the said Act shall
come into force.
By order and in the name of the Governor of Karnataka,

B.H. Umapathy
Under Secretary to Government,
Labour Department.

VII
Bangalore, dated 8th November 2002, [No. LD 237 ET 2002]
In exercise of the powers conferred by sub-section 1 of the Karnataka
Shops and Commercial Establishments (Amendment) Act, 2002 (Karnataka
Act 14 of 2002), the Government of Karnataka hereby appoints the 2nd day
of November 2002, as the date on which the daid Act shall come into force.

By order and in the name of the Governor of Karnataka.

B.M. MATAPATHI
Under Secretary to Government,
Labour Department.

[Published in Karnataka Gazette Part-IV-A dated: 12.12.2002]

 LatestLaws.com

115

KARNATAKA ACT NO. 11 OF 2001

THE KARNATAKA SHOPS AND COMMERCIAL
ESTABLISHMENTS (AMENDMENT) ACT, 2001

ARRANGEMENT OF SECTIONS
Sections:
1. Short title and commencement
2. Amendment of section 3

STATEMENT OF OBJECTS AND REASONS

The nature of work in Information Technology
establishments and Information Technology enabling services
or Establishments; Bio-Technology and Research Centres or
establishments of epidemic and other diseases, is such that it
requires flexibility in terms of working hours as their work entails
lot of mental work in terms of fault finding, imagination and
reflection and design. So much so no time can be setout with
regard to their working hours and even weekly holiday, except
assigning task to be accomplished.
Therefore, it is considered necessary to amend the
Karnataka Shops and Commercial Establishments Act, 1961 to
give partial exemption regarding opening and closing hours and
weekly holiday so as to provide flexi time.
Hence the Bill.
(Vide L.A.Bill No.2 of 2001 File No. XE 20 } 2000)
 LatestLaws.com

116

KARNATAKA ACT NO. 11 OF 2001

(First Published in the Karnataka Gazette Extra-ordinary on
the Eleventh day of April, 2001)
THE KARNATAKA SHOPS AND COMMERCIAL
ESTABLISHMENTS (AMENDMENT) ACT, 2001
(Received the assent of the Governor on the tenth
day of April, 2001)
An Act further to amend the Karnataka Shops and
Commercial Establishments Act, 1961.
Whereas, it is expedient further to amend the Karnataka
Shops and Commercial Establishments Act, 1961 (Karnataka
Act 8 of 1962) for the purposes hereinafter appearing;
Be it enacted by the Karnataka State Legislature in the
fifty-second year of the Republic of India, as follows:-
1. Short title and commencement.- (1) This Act may
be called the Karnataka Shops and Commercial Establishments
(Amendment) Act, 2001.
(2) It shall come into force on such 1[date] as the State
Government may, by notification, appoint.
2. Amendment of section 3.- In section 3 of the
Karnataka Shops and Commercial Establishments Act, 1961
(Karnataka Act 8 of 1962), in sub-section (2), after clause (p),
the following clauses shall be inserted, namely:-
(q) Information Technology Establishments;
(r) Information Technology enabling services or
establishments;
(s) Bio-Technology and Research Centres or
establishments of epidemic and other diseases
Published in the Karnataka Gazette Part IV-A Extraordinary No.775 dated
11-4-2001 in Notification No. XE 20 } 2000.
1. The Act has come into force w.e.f. 1-6-2001 vide Notification NO. LD 188
LET 99 (P) dated 1-6-2001.
 LatestLaws.com

220

KARNATAKA ACT NO. 14 OF 2002

THE KARNATAKA SHOPS AND COMMERCIAL
ESTABLISHMENTS (AMENDMENT) ACT, 2002
ARRANGEMENT OF SECTIONS
Sections:
1. Short title and commencement
2. Amendment of Section 25
STATEMENT OF OBJECTS AND REASONS
Section 25 of the Karnataka Shops and Commercial
Establishments Act, 1961 prohibits employment of women
and young persons during night. Establishments of
Information Technology or Information Technology enabled
service, develop software for foreign customers. The
personnel in these establishments often work late in the
night. The Personnel have to interact with their customers
late in evenings or throughout the night depending upon
the global part of the Country. These establishments
employ good number of women workers. As section 25
prohibits employment of women during night it has
affected working of the establishments. Software
development is usually entrusted to a team which may
also include women employees.
Therefore, in order to utilise the Services of women
employees during night it is considered necessary to
amend section 25 to empower the State Government to
exempt any establishment of Information Technology or
Information Technology enabled services from the
provisons of that section relating to employment of women
during night subject to the condition that the
establishments provides facilities of transportation and
security to such women employees.
Hence the Bill.
(L.A. Bill No. 16 of 2002)
 LatestLaws.com

221

KARNATAKA ACT NO. 14 OF 2002

(First published in the Karnataka Gazette Extra-ordinary
on the thirtieth day of August, 2002)
THE KARNATAKA SHOPS AND COMMERCIAL
ESTABLISHMENTS (AMENDMENT) ACT, 2002
(Received the assent of the Governor on the twenty
seventh day of August, 2002)
An Act further to amend the Karnataka Shops and
Commercial Establishments Act, 1961.
Whereas, it is expedient further to amend the
Karnataka Shops and Commercial Establishment Act,
1961 (Karnataka Act 8 of 1962) for the purposes
hereinafter appearing;
Be it enacted by the Karnataka State Legislature in
the fifty-third year of the Republic of India, as follows:-
1. Short title and commencement.- (1) This Act may
be called the Karnataka Shops and Commercial
Establishments (Amendment) Act, 2002.
(2) It shall come into force on such date as the State
Government may, by notification, appoint.
2.Amendment of section 25.- In Section 25 of the
Karnataka Shops and Commercial Establishments Act,
1961 (Karnataka Act 8 of 1962), the following proviso
shall be inserted, namely:-
"Provided that the State Government may, by
notification exempt any establishment of Information
Technology or Information Technology enabled service
from the provisions of this section relating to employment
of women during night subject to the condition that the
establishment provides facilities of transportation and
security to such women employees and subject to any
other condition as may be specified in the notification."

(Published in the Karnataka Gazette Part IV-A Extra Ordinary No. 1261 dated
30-8-2002 in Notification No. XE
 


 LatestLaws.com

KARNATAKA ACT NO. 28 OF 2005

THE KARNATAKA SHOPS AND COMMERCIAL ESTABLISHMENTS (AMENDMENT)
ACT, 2005
Arrangement of Sections
Sections:
1. Short title and Commencement
2. Amendment of section 4

STATEMENT OF OBJECTS AND REASONS

LatestLaws.com
To avoid undue hardship to the owners of the shops and commercial establishments, in
registering their establishments and also in renewal of their registration certificates it is
proposed to amend section 4 of the Shops and Commercial Establishments Act, 1961 and to
provide for deemed registration or renewal of registration certificate, in case the area Labour
Inspector does not register or renew or fails to communicate the grounds on which
registratiion/renewal was not done within thirty days from the date of receipt of such
applications.

Provision is also made to impose penalty for false claim of the benefit of deemed
registration with an imprisonment of not less than six months and with a fine which may extend
to five thousand rupees.
Hence, the Bill.
[L.A. Bill No. 15 of 2005]
(Entry 26 of list II of Seventh Schedule to the Constitution of India.)
 LatestLaws.com

KARNATAKA ACT NO. 28 OF 2005

(First published in the Karnataka Gazette Extra-ordinary on the Twelfth day of September, 2005)
THE KARNATAKA SHOPS AND COMMERCIAL ESTABLISHMENTS (AMENDMENT)
ACT, 2005
(Received the assent of the Governor on the sixth day of September, 2005)
An Act further to amend the Karnataka Shops and Commercial Establishments Act,
1961.
Whereas, it is expedient further to amend the Karnataka Shops and Commercial
Establishments Act, 1961 (Karnataka Act 8 of 1962) for the purposes hereinafter appearing;
Be it enacted by the Karnataka State Legislature in the fifty-sixth year of the Republic of
India, as follows :-
1. Short title and Commencement :- (1) This act may be called the Karnataka Shops
and Commercial Establishments (Amendment) Act, 2005.
(2) It shall come into force on such date as the State Government may, by
notification, appoint.
2.Amendment of section 4 :- In section 4 of the Karnataka Shops and Commercial
Establishments Act, 1961 (Karnataka Act 8 of 1961) ,-
(1) After sub-section (3), the following sub-section shall be inserted, namely :-
(3A) In case the Inspector is not satisfied about the correctness of the statement
together with fees under sub-section (3) shall within thirty days from the date of receipt of the
same communicate to the employer his decision for refusing to register the establishment with
the reasons therefor, failing which the establishment shall be deemed to have been registered.
(2) After sub-section (5), the following sub-sections shall be inserted, namely :-
(6) In case the Inspector is not satisfied about the correctness of the statement or the
renewal application or the payment fee prescribed or any other condition of renewal shall within
thirty days from the date of receipt of statement together with fees from the employer seeking
renewal of registration certificate communicate to the employer his decision for refusing to
renew the registration with the reasons therefor, failing which the registration certificate shall be
deemed to have been renewed.
(7) In case the certificate of registration or renewal of registration is not received by any
employer within the period specified in sub-section (3A) or (6), the employer shall display a self-
certification statement sent by Registered Post with Acknowledgement Due to the Registering
Authority for registration or renewal, as the case may be, along with the acknowledgement to
that effect stating that he has got the deemed benefit. In case the certificate of registration or
renewal of registration as the case may be, is received by the employer subsequently, such self
certification shall be replaced with a regular certificate as soon as the same is received.
(8) If any employer has falsely claimed the benefit of deemed registration and has
displayed such self certificate under sub-section (7), he shall on conviction be punished with an
imprisonment of not less than six months and with a fine which may extend to five thousand
rupees.

By order and in the name of the Governor of Karnataka

G. Dakshina Moorthy
Secretary to Government,
Department of Parliamentary Affairs and Legislation.
Published in the Karnataka Gazette Part IV-A Extra Ordinary No. 1680 dated 12-9-2005 in Notification
No. AE 25 2004.
 LatestLaws.com

Karnataka Act No. 12 of 2007

THE KARNATAKA SHOPS AND COMMERCIAL ESTABLISHMENTS
(AMENDMENT) ACT, 2007

Arrangement of Sections
Sections:
1. Short title and commencement
2. Amendment of section 30
3. Insertion of new section 33-A
4. Amendment of section 40

STATEMENT OF OBJECTS AND REASONS

Amending Act 12 of 2007.- The provisions of the Karnataka Shops and

Commercial Establishments Act, 1961, provides only for penalty by way of fine or
imprisonment and there is no provision for compounding of offences departmentally.
Hence, it is concerned necessary to provide for composition of offences under the
Karnataka Shops and Commercial Establishments Act, 1961 in order to reduce litigation
and facilitate speedy recovery of dues.
Hence the Bill.
[L.A. Bill No. 15 of 2007]
[Entry 24 of List III of the Seventh Schedule to the Constitution of India.]
 LatestLaws.com

Karnataka Act No. 12 of 2007

[First Published in the Karnataka Gazette Extra-ordinary on the

30th day of April 2007]
THE KARNATAKA SHOPS AND COMMERCIAL ESTABLISHMENTS

(AMENDMENT) ACT, 2007

[Received the assent of the Governor on the Twenty Seventh day of April 2007]

An Act further to amend the Karnataka Shops and Commercial Establishments

Act, 1961.

Whereas, it is expedient further to amend the Karnataka Shops and Commercial

Establishments Act, 1961 (Karnataka Act 8 of 1962), for the purposes hereinafter
appearing;

Be it enacted by the Karnataka State Legislature in the fifty-eighth year of the

Republic of India, as follows:-
1. Short title and commencement.- (1) This Act may be called the Karnataka
Shops and Commercial Establishments (Amendment) Act, 2007.
(2) It shall come into force on such date as the State Government may, by
notification, appoint.
2. Amendment of section 30.- In section 30 of the Karnataka Shops and
Commercial Establishments Act, 1961 (Karnataka Act 8 of 1962) (hereinafter referred to
as the principal Act), in sub-section (3), for the word and figures "section 24", the words
and figures sections 24 and 25 shall be substituted.
2. Insertion of new section 33-A.- After section 33 of the principal Act, the
following shall be inserted, namely:-
"33-A Compounding of offences.- (1) The jurisdictional Labour Officer in lieu
of Prosecution may compound the offences punishable under this Act or the rules made
thereunder, except the offences punishable under sections 24 and 25, at the option of
the offending employer before or after the institution of the prosecution by levying a sum
not exceeding rupees two thousand but not less than rupees one thousand for the first
offence and for the second or subsequent same offence, a sum not exceeding rupees
five thousand but not less than rupees two thousand.
 LatestLaws.com

3. Amendment of section 40.- In section 40 of the principal Act, in sub-section

(3), for the words "two hundred and fifty rupees", the words "ten thousand rupees" shall
be substituted.

T.N. Chaturvedi

Governor of Karnataka

By Order and in the name of the Governor of Karnataka

G.K. Boregowda
Secretary to Government,
Department of Parliamentary Affairs and Legislation

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