Keywords : Apprentice, Banking Company, Commercial Establishment, Establishment, Period of Work, Register of Establishments, Shop
Amendments appended: 11 of 2001, 14 of 2002, 28 of 2005, 12 of 2007
ENT 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
4
the Assistant Labour 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 1982–83
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.)
5
VI
Amending Act 25 of 1997.—It is proposed to amend the Karnataka
Shops and Commercial Establishments Act, 1961, to provide for:—
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
6
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)
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.
7
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)
X
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.]
8
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, 28 of 2005 and 12 of 2007)
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:—
- Adopted by the Karnataka adaptations of laws order 1973 w.e.f. 1.11.1973
CHAPTER I
PRELIMINARY - Short title, extent, commencement and application.— (1) This Act
may be called the 1
[Karnataka]1
Shops and Commercial Establishments Act,
1961. - 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
. - 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. - Act came into force w.e.f. 1.10.1964 by notification. Text of notification is at the end of the Act.
(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
9
the expiry of three months from the date of publication of such notification in
the official Gazette. - 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; - 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,— - 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
;
- Substituted by Act 25 of 1997 w.e.f. 12.2.1998.
(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;
10
(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 employer’s 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;
Shops and Commercial Establishments [1962: KAR. ACT 8 10
(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 - Omitted by Act 36 of 1966 w.e.f. 25.4.1969 by notification. Text of notification is at the
end of the Act.
11
(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;
(z) “young person” means a person who is not a child and who has not
completed his eighteenth year. - 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 - Inserted by Act 17 of 1986 w.e.f. 8.5.1986.
12
(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
; - 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, caretakers, 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,-
(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;
13
(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;
(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 - 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.
14
CHAPTER II
REGISTRATION OF ESTABLISHMENTS - 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,—
(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 on the
date on which
this Act comes
into force.
(i) The date on
which this Act
comes Into
force.
(ii) New
establishments.
(ii) The 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
15
decision for refusing to register the establishment with the reasons therefor,
failing which the establishment shall be deemed to have been registered.]1 - Sub-section (3A) inserted by Act 28 of 2005 by notification. The Act is yet to be brought
into force.
1
[(4) A registration certificate issued under sub-section (2), shall be valid
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. - Sub-sections 4 and 5 inserted by Act 33 of 1982 w.e.f. 4.12.1982.
- Substituted by Act 25 of 1997 w.e.f. 12.2.1998.
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 - 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 - Sub-sections (6) (7)& (8) inserted by Act 28 of 2005 by notification. The Act is yet to be
brought into force.
16 - 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. - 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.
1
[6A. Issue of appointment orders.—Every employer, employing any
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: - 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 - 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:
17
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.
(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. - Omitted by Act 25 of 1997 w.e.f. 12.2.1998.
- 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.
18 - 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
Shops and Commercial Establishments [1962: KAR. ACT 8 18
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. - 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. - 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. - 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. - 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.
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. - 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 - 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. - 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;
(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,—
20
(a) any day of lay-off, by agreement or contract as permissible under the
standing order or for any other reasons beyond the employer’s
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 - Substituted by Act 25 of 1997 w.e.f. 12.2.1998.
1
[(2) x x x]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. - 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).
(6) In calculating leave under this section, fraction of leave of half a day
or more shall be treated as one full day’s 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:
21
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
Shops and Commercial Establishments [1962: KAR. ACT 8 22
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
22
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. - 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. - 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 subsection. - 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
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. - 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). - 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. - Power to exempt establishment.—Where the State Government is
satisfied that the leave rules applicable to employees in an establishment
