The Karnataka Shops and Commercial Establishment’s Act, 1961
The Karnataka Shops and Commercial Establishment’s Act, 1961 provides for the regulations of conditions of work and employment in shops and commercial establishments. According to section 4 of this Act, the employer of every establishment, shall send to the Inspector of the area concerned, a statement, with the required fee, containing the information regarding name of the employer and manager, address of the establishment, name of the establishment, and such other particulars. On receipt of the said statement, the Inspector shall register the establishment and issue a registration certificate, which shall be prominently displayed in the establishment. A registration certificate issued so, shall be valid for 5 years and thereafter it need to be renewed.
Under section 2(u) of this Act a “Shop” is defined as “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”. Hence a bare reading of the provisions of the act makes it clear that offices, godowns and warehouses used in connection with any trade or business are liable for separate registration under the Act.
As per section 4 of the said act, the liability to obtain the registration of an establishment lies on the Employer. Section 2(h) of the act defines Employer as follows “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”. Hence it is crystal clear that the Registration Certificate needs to be obtained in the name of the employer or the owner of the business. Even if the business is being run on the rented premises, the Registration Certificate needs to be obtained in the name of the employer or the owner of the business and not in the name of the owner of the premises.
As per section 6-A of the said act, every employer employing any person, in connection with his establishment, shall issue an appointment order in writing, within 30 days of his appointment.
No employee in any establishment shall be required to work for more than nine hours on any day any forty-eight hours in any week. Further the total number of hours of work including overtime shall not exceed ten hours in any day. It is further provided that the total number of overtime hours worked by an employee shall not exceed fifty in a period of three continuous months.
Further no young person shall be allowed to work in any establishment for more than 5 hours a day. Here a young person means a person between fourteen and eighteen years.
As per section 9 of the Act, no employ in any establishment shall work for more than five hours at a stretch. After five hours of work, an employee shall be given at least 1 hour of rest.
Every establishment shall remain close for one day of the week. The said day shall be displayed on a notice, in a conspicuous place in the establishment. Further every employee in an establishment shall be given at least one whole day in a week as holiday for rest.
No child shall be required or allowed to work in any establishment. Further no women or a young person shall be required to work in an establishment during nighttime. However, the State Government shall exempt establishment of IT or ITES from the application of this provision.
No employer shall remove or dismiss an employee who has put in service under him continuously for a period not less than six months, except for a reasonable cause and unless and until one month 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.