Karnataka Amends Shops Act: Electronic Registration, Service Certificates, Higher Penalties Introduced

The Karnataka Shops and Commercial Establishments (Amendment) Bill, 2026 has been enacted to amend the Karnataka Shops and Commercial Establishments Act, 1961. The amendment exempts establishments already registered under the Occupational Safety, Health and Working Conditions Code, 2020 (Central Act 37 of 2020) from separate registration under the Karnataka Act. It mandates electronic or digital mode for registration, fee payment, and issuance of registration certificates. The Bill introduces two new sections: Section 6-B requires employers to issue service certificates to employees within seven days of application, and Section 6-C prohibits employers from retaining original educational or experience certificates of employees. The amendment replaces references to the Payment of Wages Act, 1936 and the Workmen's Compensation Act, 1923 with the Code on Wages, 2019 and the Code on Social Security, 2020 respectively. Several clauses related to women's employment regulations have been omitted from Section 25. Penalties have been significantly increased: fines for violations of core provisions now range from Rs. 3,000 to Rs. 5,000 for first offences and Rs. 5,000 to Rs. 10,000 for subsequent offences; penalties for obstructing inspectors have been raised from Rs. 500 to Rs. 10,000. The amendment introduces a new Section 33-A allowing compounding of offences by jurisdictional Labour Officers, and Section 33-B providing for appeals to an Appellate Authority not below the rank of Assistant Labour Commissioner. The Bill comes into force immediately upon enactment.