Government of Karnataka Notifies the Karnataka Shops and Commercial Establishments (Amendment) Act, 2026 Simplifying Registration, Introducing Employee Documentation Requirements and Strengthening Penalties

The Government of Karnataka has issued the Karnataka Shops and Commercial Establishments (Amendment) Act, 2026 (“Amendment Act”), with a view to further amend the Karnataka Shops and Commercial Establishments Act, 1961 (“Principal Act”). The Amendment Act has received the Governor’s assent on 3 September 2026 and comes into force with immediate effect.

Key Highlights:

1. Establishments employing 10 or more workers and already registered under the Occupational Safety, Health and Working Conditions Code, 2020 are now exempted from the provisions of the Act. Further, no separate registration will be required for godowns or storage facilities situated within 100 meters from the principal establishment already registered.

2. Registration and related processes will be facilitated through electronic or digital mode, with the registration remaining valid until closure or cessation of business of the establishment. The period prescribed under the Act for the Inspector to communicate to the employer his decision to refuse registration of the establishment, along with reasons, has been reduced from 30 days to 7 days.

3. The mode of communication to be made by the employer to the Inspector regarding closing of his establishment has been changed to electronic or digital mode instead of physical mode.

4. Employers will now be required to issue a service certificate to an employee within 7 days of receipt of an application from such employee and are prohibited from retaining original educational certificates, experience certificates, or any other original documents of employees at the time of appointment or during employment..

5. The following conditions for allowing a woman employee to work during night have been omitted:

1. obtaining bio-data of each driver and conducting pre-employment screening of the antecedents of all drivers employed on their own;
2. deciding the schedule of route of pick-up and drop, as well as allowing change of drivers/routes/shifts in case of exigencies with the prior knowledge of supervisory officers/employees;
3. non disclosure of telephone number, particularly mobile phone numbers, e-mail ID and address of the women employees to unauthorised persons;
4. making careful selection of routes in such a way that no women employee is picked up first and dropped last;
5. provision of security guards at workplace and night shift vehicles when women employees are picked up first or dropped last
6. random checking of vehicles on various routes;
7. having a control room/travel desk for monitoring movement of vehicles;
8. development and adoption of a mobile app, through which women employees can make contact at the time of emergency by giving signal.

6. The monetary penalties for various contraventions under the Act have been enhanced. Further, contraventions relating to the newly introduced requirements concerning service certificates and retention of original documents have been brought within the penal framework.

Source: Government of Karnataka