KLP Corporate Services

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SHOPS & ESTABLISHMENT ACT

Stay compliant with local laws such as the Shops & Establishment Act through our expert guidance. We assist in all necessary filings and documentation, ensuring your business remains compliant and avoids penalties.

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FACTORY LICENCES

 The Factories Act is an act of social legislation established to ensure the safety, health, and welfare of workers at work. The Karnataka Factories Rules, 1969, are the rules that the state of Karnataka has formulated in accordance with the Act. 


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CLRA ACT

 

  • It extends to the whole of India and applies to every establishment or every contractor who employs or employed 20 or more workers on any day of the preceding 12 months as contract labour registration is compulsory to employ contract labour.
  • The Contract Labour (Regulation & Abolition) Karnataka Rules, 1974  applies to the whole State of Karnataka and for all the units in Karnataka other than Central Government.

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Karnataka (BOCW) Act, 1996

 The Building and Other Construction Workers (BOCW) Act, 1996 and the Karnataka BOCW Rules, 2006 regulate employment, safety, and welfare for construction workers in the state. It mandates establishment registration, safety standards, and welfare cesses for sites employing 10 or more workers 

SHOPS & ESTABLISHMENT ACT

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rules & regulations

 Scope of the Act below  |  The Act regulates:

  • Shops  &  Commercial Establishments 
  • Offices   | IT/ITES Establishments (subject to applicable exemptions and notifications) 
  • Restaurants, Hotels, Theatres and Other Notified Establishments 

It covers:

  • Registration  | Working hours | Overtime | Weekly holidays | Leave  | Employment of Women  | Health & Safety  | Wages & Records | Inspection & Penalties

 

Key Compliance Requirements: 


  • Registration of the Establishment. 
  • Display of Registration Certificate. 
  • Issue Appointment Orders to Employees. 
  • Maintain Statutory Registers and Records. 
  • Display prescribed Notices. 
  • Observe working Hour Limits. 
  • Grant Weekly Holidays and Annual leave. 
  • Pay Overtime as prescribed. 
  • Maintain Health and Safety standards. 
  • Permit Inspections by Labour Authorities.  


Important Registers


The Rules prescribe registers such as:

  • Employee Register   |  Attendance/Muster Roll 
  • Wage Register           |  Leave Register 
  • Overtime Register     |  Inspection Book 
  • Appointment Orders | Display Notices 


(The exact forms and schedules are prescribed in the Rules and updated by amendments.) 


Important Forms


Common forms include:

  • Application for Registration    |  Registration Certificate 
  • Notice of Change |Notice of Closure 
  • Register formats prescribed under the Rules 


Latest Amendment


The State notified the Karnataka Shops and Commercial Establishments (Amendment) Rules, 2024, which amended Schedule I and certain procedural requirements under the 1963 Rules.

FACTORY LICENCE - KARNATAKA

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factory licences & its rules

 

Who Needs Factory Compliance Services?


Organizations that have factories and industrial facilities need Factory Compliance Services to ensure they comply with safety, environmental, and quality regulations. Manufacturing companies in regulated industries like pharmaceuticals, chemicals and electronics as well as industrial facilities such as oil refineries and waste treatment centers, require Factory Compliance Services.


KLP Corporate Services Factory Compliance Service provide the necessary expertise, technology-driven systems and effective process implementations to ensure ongoing compliance. We are here to support you.


  • Work with government bodies to ensure factory compliance from Registration to Closures followed with statutory requirements.
  • Notify you promptly of any changes in legislation to take necessary actions.
  • Deliver additional services beyond the required basic requirements.


The Karnataka Factories Rules, 1969 prescribe the detailed procedures and compliance requirements, including:


  1. Approval of factory building plans. 
  2. Grant and renewal of factory licenses. 
  3. Duties and responsibilities of the Occupier and Factory Manager. 
  4. Health provisions (cleanliness, ventilation, lighting, drinking water, sanitation). 
  5. Safety provisions (machine guarding, hazardous processes, fire protection, PPE, emergency exits). 
  6. Welfare facilities (washing facilities, canteen, crèche, rest rooms, first aid). 
  7. Working hours, weekly holidays, overtime and shift schedules. 
  8. Employment of young persons and women (subject to applicable laws and notifications). 
  9. Maintenance of statutory registers and records. 
  10. Notice of accidents, dangerous occurrences and occupational diseases. 
  11. Inspection powers of the Directorate of Factories, Boilers, Industrial Safety and Health (DISH). 
  12. Annual and other statutory returns. 
  13. Provisions relating to hazardous processes and dangerous operations. 
  14. Fees for factory license and amendments. 


Some of the important statutory forms/registers prescribed under the Rules include:


  • Notice of Occupation    |Register of Adult Workers 
  • Leave with Wages Register |Overtime Register 
  • Accident Register | Health Register (where applicable) 
  • Muster Roll and Wage Registers (as applicable under Factory labour laws)


FOR MORE DETAILS - CONTACT KLP Team..

CLRA RULES & REGULATIONS

CLRA ACT WITH REGISTERS AND MANDATORY

 Objectives of the CLRA Act


The Act aims to:

  • Regulate the employment of contract labour. 
  • Prevent exploitation of contract workers. 
  • Ensure welfare and health facilities. 
  • Provide for abolition of contract labour in specified operations where appropriate.  


Applicability

The Act generally applies to:

  • Every establishment employing 20 or more contract workers on any day during the preceding 12 months. 
  • Every contractor employing 20 or more contract workers.  


Responsibilities of the Principal Employer

The principal employer must:

  • Obtain Registration Certificate before engaging contract labour. 
  • Engage only licensed contractors. 
  • Ensure payment of wages if the contractor defaults. 
  • Provide welfare facilities where required. 
  • Maintain prescribed registers and records. 
  • Permit inspections by labour authorities.  


Responsibilities of the Contractor

The contractor must:

  • Obtain a Contractor's License  |Pay wages on time 
  • Provide wage slips. |Maintain statutory registers.
  • Provide canteen, rest rooms, drinking water, first aid, toilets and washing facilities wherever applicable.
  • Comply with all labour laws including EPF, ESIC and minimum wages.  


Registration and Licensing


Principal Employer:

  • Apply for Registration. | Obtain the Certificate of Registration before engaging contract labour. 

Contractor

  • Apply for a Contractor's License before commencing work. 
  • Deposit the prescribed security and license fee. 

 

Statutory Registers

The following records are generally required:

  • Register of Contractors |Register of Contract Workers 
  • Muster Roll |Wage Register 
  • Overtime Register |Wage Slip 
  • Deduction Register | Fine Register 
  • Advance Register | Annual Return 


Welfare Facilities

Where applicable, employers/contractors must provide:

  • Safe drinking water |Toilets and urinals 
  • Washing facilities |First-aid boxes 
  • Rest rooms |Canteen (where prescribed) 
  • Protective equipment (PPE), if required by the nature of work.  


Penalties

Non-compliance with the Act or the Karnataka Rules can result in:

  • Monetary fines. 
  • Imprisonment for specified offences. 
  • Cancellation or suspension of the contractor's license. 
  • Other action by the labour authorities as provided under the Act.

BOCW ACT

Comprehensive Business Support

BOCW laws regulate the Employment, Safety, Health and Welfare of Workers Engaged in Building and Construction Activities. 


Applicability


The Act generally applies to every establishment employing 10 or more building workers in any building or construction work, excluding work covered under the Factories Act. 


Types of Construction Covered

The Act covers activities such as:

  • Residential buildings |Commercial buildings |Factory buildings |Roads and highways  |Bridges and flyovers  |Railways 
  • Pipelines  |Water supply projects  | Electrical installations  |Telecom towers   | Demolition work  | Renovation and major repairs 


Registration of Establishments

Before commencing construction work, the employer must:

  • Register the establishment under the BOCW Act. 
  • Nominate the employer/occupier responsible for compliance. 
  • Maintain statutory records and registers.  


Employer Responsibilities

The employer is required to:

  • Provide a safe working environment.  | Supply personal protective equipment (PPE).  | Arrange drinking water. 
  •  | Provide first-aid facilities.  | Provide toilets and washing facilities.   |Provide rest rooms where required. 
  • Provide canteen facilities where applicable.   | Ensure safety training for workers.  | Report accidents to the competent authority.  


Safety Requirements

Construction sites should have:

  • Safety helmets  | Safety shoes  | Reflective jackets  |Safety harnesses for work at height  | Safety nets 
  • Guard rails  | Fire extinguishers  |Emergency exits  | Warning and safety signboards  | Electrical safety measures 
  • Scaffolding complying with safety standards 


Welfare Facilities

Where applicable, employers must provide:

  • Drinking water  | Washing facilities  |Latrines and urinals  | First-aid boxes  | Rest shelters  | Canteen facilities  | Crèche facilities (where prescribed)  |Temporary accommodation for workers where required.. 


Working Hours

Generally:

  • Maximum 9 hours per day     |    Maximum 48 hours per week     | Weekly holiday    |  Overtime wages as prescribed by law 


Important Registers

Maintain records such as:

  • Register of Building Workers  |Attendance/Muster Roll 
  • Wage Register  | Overtime Register   |Accident Register 
  • Inspection Register  |Safety Training Register  | PPE Issue Register 


Labour Cess

Construction projects are generally liable to payment of Building and Other Construction Workers' Welfare Cess, which is collected for the welfare of registered construction workers. The cess is administered under the BOCW welfare framework.