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KARNATAKA SHOPS AND COMMERCIAL ESTABLISHMENTS RULES, 1963

CONTENTS

1. Title
2. Definitions
3. Registration of establishments, etc
3A. Renewal of Registration Certificate
4. Manner of registering establishments and the form of registration certificate
4A. Issue of Duplicate Certificate of Registration
5. Changes how notified.
6. Computation of cash equivalent of certain concessions
7. Enquiry for fixing, opening and closing hours of establishments
8. Leave with wages register
9. Leave with wages book of the persons employed
10. Production of Medical Certificate by employee
11. Notice by employee for not availing himself of leave with wages due to him
in a year
12. Programme of leave with wages to be prepared by employer
13. Members of one family to be allowed leave on the same date
14. Notice by employer of alteration of dates fixed for leave
15. Exchange of leave between employees
16. Cleanliness of an establishment
17. Establishment to be sufficiently lighted.
18. Building of more than one storey to be provided with two stairs
19. Exits to external stairs to open from inside.
20. Precaution against fire
21. Duties of Inspectors
21A. Procedure for Prosecution
22. Ascertainment of age by the Inspector
23. Submission of diary by Inspectors
24. Maintenance of registers and records and display of notices
24A. Exhibition of name board
25. Appeals under Section 39
26. Penalty for contravention
SCHEDULE 1 :- SCHEDULE
KARNATAKA SHOPS AND COMMERCIAL ESTABLISHMENTS RULES, 1963
In exercise of the powers conferred by sub-section (1) of Section 40 of the
Karnataka Shops and Commercial Establishments Act, 1961 (Karnataka Act 8 of
1962), the Government of Karnataka hereby makes the following Rules, the
draft of the same having been published as required by sub-section (4) of the
said section in the Karnataka Gazette, dated the 16th May, 1963, in Notification
No. PLM 82 LSC 61, dated the 10th May, 1963, namely:-
1. Title :-

These rules may be called the Karnataka Shops and Commercial Establishments
Rides, 1963.
2. Definitions :-

In these rules, unless the context otherwise requires.

(a) "Act" means the Karnataka Shops and Commercial Establishments Act, 1961
;
(b) "Form" means a form appended to these rules;
(c) "Government" means the Government of Karnataka;
(d) "Schedule" means the schedule appended to these rules;
(e) "Section" means a section of the Act;
(f) Words and expressions used in the Act and not defined in these Rules shall
have the meanings assigned to them in the Act.
3. Registration of establishments, etc :-

(1) Within the period specified in sub-section (3) of Section 4 OF THE

Karnataka Shops and Commercial Establishments Act, 1961 , the employer of
every establishment shall send to the Inspector of the area concerned a
statement in Form "A" together with the fees specified in Schedule I
.
(2) The fees payable under sub-rule (1) 1 [and Rule 3A] shall be paid into the
local Treasury under the Head of Account "XXI-Miscellaneous-b-Labour" and the
receipt obtained therefor shall be sent along with 2[Form "A" or Form "AA", as
the case may be.]
1. Inserted by GSR No. 8, dated 10-1-1983, KGD 11-1-1983, No. SWL 7 LSC
82.

3A. Renewal of Registration Certificate :-

1(1) The Registration Certificate issued under sub-section (2) of Section 4 OF

THE Karnataka Shops and Commercial Establishments Act, 1961 , shall be
renewed 2[once in five years] before the date of its expiry. The employer of
every establishment shall send to the Inspector of the area concerned a
statement in duplicate, in Form "AA" before ninety days from the date of expiry
of such registration certificate.
(2) The fees for renewal of the Registration Certificate shall be the same as the
fees specified in Schedule I.] 3 [x x x x x].
1. Rule 3-A inserted by GSR No. 8, dated 10-1-1983, KGD 11-1-1983, No. SWL
7 LSC 82.
2. Substituted for the words "every year" by Notification No. LD 37 LSC 97,
dated 31-8-1998, w.e.f. 2-9-1998
3. The words and figures "Except for category of establishment at SI. No. 1 for
which no renewal fee shall be paid" omitted by GSR No. 106, dated 5-6-1992,
w.e.f. 5-6-1992, KGD 11-6-1992, No SWL 13 LSC 88.

4. Manner of registering establishments and the form of registration

certificate :-
On receipt of the statement and the fees prescribed in 1 [Rule 3 or Rule 3A],
the Inspector shall after being satisfied about the correctness of the statement,
register the establishment in the register of establishments which shall be in
Form "B" and shall issue a Registration Certificate to the employer in Form "C".
1. Substituted for the word and figure "Rule 3" by GSR No. 8, dated 10-1-1983,
KGD 11-1-1983, No. SWL 7 LSC 82.

4A. Issue of Duplicate Certificate of Registration :-

1Where a certificate of registration granted or renewed under Rule 3 or Rule 3A,

is lost, defaced, or accidentally destroyed a duplicate copy of the certificate of
registration may be granted on payment of a fee of 2 [rupees fifty only.]
1. Rule 4-A inserted by GSR No. 27, dated 19-1-1984, KGD 20-1-1984, No.
SWL 7 LSC 82.
2. Substituted for the wrods "Rupees Fifteen only" by Notification No. LD 37
LSC 97, dated 31-8-1998, w.e.f. 2-9-1998

5. Changes how notified. :-

The employer shall notify to the Inspector concerned any change in respect of
any information contained in his statement under 1 [Rule 3 or Rule 3A] in Form
"D" within 15 days after the change has taken place.
1. Substituted for the word and figure "Rule 3" by GSR No. 8, dated 10-1-1983,
KGD 11-1-1983, No. SWL 7 LSC 82

6. Computation of cash equivalent of certain concessions :-

(1) The cash equivalent of the advantage accruing through the concessional
( 2 ) For the purpose of cash equivalent monthly average market rate of
foodgrains and other articles shall be as computed by the Department of
Labour.
7. Enquiry for fixing, opening and closing hours of establishments :-

(1) Before issuing a notification under sub-section (1) of Section 11 OF THE

Karnataka Shops and Commercial Establishments Act, 1961 , the Government
shall make an enquiry under sub-section (2) of Section 11 OF THE Karnataka
Shops and Commercial Establishments Act, 1961 in the manner specified in the
following sub-rules.
(2) The Government shall give notice of its intention to pass such order. The
notice shall be in Form "E" and shall, unless a copy of the order proposed to be
passed is annexed to it, specify the area and the establishment or
establishments or class or classes of establishments to which the order shall
apply the hours of opening or the hours of closing or both, which are proposed
to be fixed and the days in respect of which such hours are so proposed to be
fixed. The Notice shall also state that objections and suggestions with respect
to such orders, if any, may be sent to the officer mentioned in the notice within
one month from the date of such notice.
(3) The notice shall be published in the Official Gazette and the copies of the
notice shall be affixed at such public places in the area to which the order is
proposed to be applied as the State Government may deem fit. Copies of the
notice shall be sent to the local authority in whose jurisdiction such area is
situated and to such associations or organisations as the State Government may
deem fit. The notice shall also be published in at least one newspaper having
circulation in such area.
(4) The State Government shall consider all objections and suggestions received
by them before issuing the notification under sub-section (1) of Section 11 OF
THE Karnataka Shops and Commercial Establishments Act, 1961 .
8. Leave with wages register :-

(1) The employer shall maintain a leave with Wages Register in Form "F" 1 [x x
x x x] Provided that where the Inspector is of the opinion that any muster-roll
or register maintained as part of the routine of the establishment or return
made by the employer given in respect of any or all of the persons employed in
the establishment the particulars for the enforcement of Chapter IV of the Act,
he may, by order in writing direct that such muster-roll or register or return
shall, to the
(2) The register maintained under sub-rule (1) shall be preserved for a period
of three years after the last entry in it and shall be produced before the
Inspector on demand.
1. The words "and make a return to the Inspector concerned in Form "G" not
later than the 1st September of the year subsequent to that to which it relates"
omitted by Notification No. LD 37 LSC97, dated 31-8-1998, w.e.f. 2-9-1998

9. Leave with wages book of the persons employed :-

(1) The employer shall provide each employee with a book called the "Leave
with wages book" in Form "H". The book shall be the property of the employee
and entries of the dates of holidays or interruptions in service shall be made
therein by the employer from rime to time. The employer shall not keep it for
more than 10 days at a time to make the entries.
(2) The employer shall on being satisfied that the employee has lost his leave
with wages book provide him with a duplicate thereof on payment of 25 paise.
10. Production of Medical Certificate by employee :-

If so required by the employer in writing the employee shall submit a Medical

Certificate signed by a registered or recognised Medical Practitioner. Vaidya or
Hakim stating the cause of the absence and the period for which the employee
is, in his opinion, unable to attend to his work.
11. Notice by employee for not availing himself of leave with wages
due to him in a year :-

1 x x x x x.

1. Rules 11,12,13,14,15 and 16 omitted by Notification No. LD 37 ISC 97,

dated 31-8-1998, w.e.f. 2-9-1998

12. Programme of leave with wages to be prepared by employer :-

x x x x x.
13. Members of one family to be allowed leave on the same date :-

x x x x x.
14. Notice by employer of alteration of dates fixed for leave :-

X X X X X.
15. Exchange of leave between employees :-

x x x x x.
16. Cleanliness of an establishment :-

x x x x x.
17. Establishment to be sufficiently lighted. :-

T he latrines, passages, stairs, hoists, establishment grounds, in so far as the

entrance of the said places is not closed, shall during working hours be provided
with such lighting as will ensure safety of movement or passage through them.
18. Building of more than one storey to be provided with two stairs :-

Every building of more than one storey shall be provided with at least two sets
of stairs or steps permanently fixed either inside or outside the building, so as
to afford direct and unimpeded access from every part of the establishment to
the ground level. Such stairs shall be provided with a suitable and sufficient
handrail or other convenient support. In establishments employing less than 40
persons, the Inspector may accept in lieu of a second set of stairs or steps such
other means of escape in case of fire as can reasonably be required in the
circumstances of each case.
19. Exits to external stairs to open from inside. :-

E very window or door giving access to an external staircase shall be so

arranged as to open immediately from inside.
20. Precaution against fire :-
No person shall smoke or use a naked light or cause or permit any such light to
be used, in the immediate vicinity of any inflammable material in any
establishment.
21. Duties of Inspectors :-

(1) The Inspector shall make such examination as may appear to him to be
necessary for the purpose of satisfying himself that the provisions of the Act
and of these rules and any order passed by Government under the Act are duly
observed. In particular he shall satisfy himself
(i) that the establishment is duly registered under the Act;
(ii) that the registers, records and notices required to be maintained or
displayed under the Act or these rules are properly maintained or displayed;
(iii) that the intervals of rest and holidays required to be granted or observed
under the Act are granted and observed and the limits of hours of work and
spread-over laid down under the Act are granted and observed and the limits of
hours of work and spread-over laid down under the Act are not exceeded;
(iv) that the provisions of the Act and any notification issued by the
Government regarding the opening and closing hours are duly observed;
(v) that the provisions of the Act and the rules regarding leave are properly
observed;
(vi) that the provisions of these rules relating to cleanliness, lighting and
precaution against fire are properly observed;
(vii) that the provisions of the Act relating to the payment for overtime work
are duly observed;
(viii) that no child is allowed to work in any establishment.
(2) For carrying out such examination, the Inspector may interrogate such
persons on the premises as he may deem necessary provided that no such
person shall be required under this rule, to answer any question, the answer to
which might tend to incriminate him.
21A. Procedure for Prosecution :-

1A n Inspector shall obtain the prior approval of the Chief Inspector 2 [or any
other officer not below the rank of an Assistant Labour Commissioner specially
authorised by him in this behalf] before making a complaint in respect of an
offence punishable under the Act, rules or orders made thereunder.
1. Rule 21-A inserted by GSR No. 390, dated 26-12-1975, KGD 1-1-1976, No.
SWL 3 LSC 75.
2. Inserted by GSR No. 66, dated 19-2-1977, KGD 24-2-1977, No. SWL 3 LSC
75.

22. Ascertainment of age by the Inspector :-

An Inspector may require an employer to produce a certificate of age from a

registered medical practitioner in respect of any employee, such certificate shall
be in Form "J".
23. Submission of diary by Inspectors :-

The Inspectors shall keep a file of the records of his inspection arranged in
monthly bundles and shall submit to the officer to whom he is subordinate on
the 15th day of each month a diary in Form "K".
24. Maintenance of registers and records and display of notices :-

1(1) x x x x x.
(2) x x x x x.
(3) x x x x x.
(4) Every employer shall exhibit in his establishment a notice. in Form "P"
specifying the day or days of the week on which the persons employed by him
shall be given a holiday. The notice shall be exhibited before the persons to
whom it relates cease work on the Saturday immediately preceding the first
week during which it is to have effect.
(5) Every employer shall exhibit in his establishment a notice containing such
extracts of the Act and these rules in 2[Kannada] and in the language of the
majority of the employees.
(6) Any notice required to be exhibited under these Rules shall be exhibited in
such manner that it can be readily seen and read by any person whom it affects
and shall be renewed whenever it becomes defaced or otherwise ceased to be
clearly legible.
(7) In any register of record which an employer is required to maintain under
these rules the entries relating to any day shall be made on such day.
(8) Save as otherwise provided in these Rules, the registers, records and
notices relating to any calendar year shall be preserved till the end of the next
calendar year.
(9) If on any application made by an employer in writing, the Government is
satisfied that any muster-roll, register or record
3 (9A) The appointment order issued by the employer under Section 6A OF THE
Karnataka Shops and Commercial Establishments Act, 1961 shall be in Form Q.
(10) Save as otherwise provided in sub-rule (5), all registers, records, muster-
rolls and notices required to be maintained, exhibited or given under these
Rules shall be either in English or in Kannada.
(11) Every employer shall maintain a Visit Book in which an Inspector visiting
the establishment may record his remarks regarding any defects that may come
to light at the time of his inspection and shall produce it whenever required to
do so by an Inspector. Where an office, storeroom, godown, warehouse or work
place used in connection with the trade and business of an establishment is
situated at premises other than the premises of the establishment, all registers,
records, muster-rolls, visit book and notices required to be maintained,
exhibited or given under the Act, and these rules shall be separately so
maintained, exhibited, or given in respect of and at such office, storeroom,
godown, warehouse or work place.
1. Sub-rules (1), (2) and (3) omitted by Notification No. LD 37 LSC 97, dated
31-8-1998, w.e.f. 2-9-1998
2. Substituted for the word "English" by Notification No. LD 37 LSC 97, dated
31-8-1998, w.e.f. 2-9-1998
3. Sub-rule (9-A) inserted by Notification No. LD 37 LSC 97, dated 31-8-1998,
w.e.f. 2-9-1998

24A. Exhibition of name board :-

1 The name board of every establishment shall be in Kannada and wherever

other languages are also used, the versions in such other languages shall be
below the Kannada version.
1. Rule 24-A inserted by GSR 12, dated 11-1-1985, KGD 15-1-1985, No. SWL 4
LSC 84.

25. Appeals under Section 39 :-

1 (1) The Assistant Commissioners of Labour shall, within the areas of their
respective jurisdiction be the officers to whom appeals in respect of orders
under sub-section (1) of Section 39 OF THE Karnataka Shops and Commercial
Establishments Act, 1961 shall lie.
(2) Every such appeal shall be presented within 30 days from the date on which
the order of removal or dismissal was communicated to the employee:
Provided that an appeal may be admitted after the said period of 30 days if the
appellant shows sufficient cause that the appeal could not be presented in time.
(3) Every appeal shall be in the form of a memorandum setting forth concisely
the grounds of objection to the order and shall be accompanied by a copy of
the order appealed against.
1. Rule 25 substituted by GSR 258, dated 6-6-1967, KGD 15-6-1967, No. LMA
2 LSC 67.

26. Penalty for contravention :-

1 Whoever contravenes Rule 8, Rule 9, Rule 17, Rule 18, Rule 19, Rule 20, Rule
22, Rule 24 or Rule 24A, shall on conviction, be punishable with fine which shall
not be less than one hundred rupees but which may extend to two hundred and
fifty rupees.
1. Rule 26 substituted by Notification No, LD 37 LSC 97, dated 31-8-1998,
w.e.f. 2-9-1998

SCHEDULE 1
SCHEDULE

[See Rule 3 and Rule 3A]

SCHEDULE 1

[See Rules 3 and 3-A]

SI. Category of
FeeRs.
No. Establishment
Shops and
Commercial
1. Establishments 125.00
having no
employees
2. Shops and Commercial
Establishments employing 1 to 9 employees
250.00
Shops and
Commercial
Establishments
3. employing 2,500.00
between 10 to
19 employees
Shops and
Commercial
4. Establishments 6,250.00
employing
between 20 to
49 employees
Shops and
Commercial
5. Establishments 12,500.00
employing
between 50 to 99
employees

Shops and
6. Commercial 25,000.00
Establishments employing 100 and above
employees