Introduction of an online portal for
ensuring compliance under the state-specific labour law in
Bangalore / State of Karnataka.
Mandatory registration for all
establishments on the portal from April 1, 2015.
Registration certificate to be issued
within 15 days after payment of fee and verification of
Portal to facilitate other compliances
such as renewal and amendment of registration certificates, filing
of annual returns, etc.
Commercial establishments1 in India's information
technology capital, Bangalore, are required to use an online
facility for ensuring compliances under the state-specific labour
law, the Karnataka Shops and Commercial Establishments Act, 1961
("Karnataka S&E Act").
The online system, known as the
portal2, which was first introduced in Bangalore
(revenue division) in 2013, has been extended to allow for labour
law compliances including registration and renewal of the
certificate of registration, as per the Karnataka S & E Act.
This reform, introduced by the Department of Labour, Government of
Karnataka ("Labour Department"), is
expected to significantly ease compliances and allow for automation
of the services of the Labour Department. Commercial establishments
including information technology, software services and outsourcing
companies in the State of Karnataka need to use the e-karmika
portal to ensure compliances such as (i) application for
registration, (ii) renewal of registration certificate; (iii)
amendment in registration certificate; (iv) issuance of duplicate
registration certificate; (v) filing of annual returns; (vi)
applying for exemption on weekly holidays; (vii) exemption for
women working in night shifts and (viii) submission of appeals.
A recent survey indicated that nearly 25% of the shops do not
possess a valid registration certificate as necessary under the
Karnataka S & E Act.3 It appears that the multiple
compliance hassles under the statute made it a cumbersome procedure
for entrepreneurs to ensure compliance. It also became difficult
for the Labour Department to maintain hard copy documents, as it
led to the occurrence of significant number of errors in relation
to the information submitted by the applicants, the registration
certificate or other records maintained by the Labour
The introduction of the online facility is a progressive step to
help ensure consistency, regularity and ease of compliance for
shops and establishments in the State of Karnataka. The online
portal is also expected to facilitate the Labour Department in
streamlining their processes and to ensure better administration
and reach. Similar initiatives have been taken in recent times by
some of the other labour authorities including the Employees'
Provident Fund Organisation, which provides for social security to
1 Section 2 (e) of the Karnataka S & E Act-
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
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