Need Urgent Help: Complete Labor Law Checklist for Shops and Establishments in Karnataka

I need a complete labor law checklist with all the labor laws, including the attached labor laws, on an urgent basis. I also need to understand what the compliance checklist is for organizations covered under the Shops and Establishment Act.

Please find the attachment. It was originally prepared with reference to Kerala but was then tailored for Karnataka. The form numbers corresponding to Karnataka may need to be rechecked.

Labor Laws and the IT Industry
Is the IT industry, which falls under the Shop & Establishment category, exempt from labor laws, or are labor laws applicable to it?

Why not? Why should the IT industry be given exemption from the coverage of labor laws? Don't they employ people? Doesn't there exist an employee-employer relationship? YES. Therefore, all labor laws are applicable to IT companies, and most of the IT techies are 'workers' as per the Industrial Disputes Act, even though their salaries may exceed lakhs. True, considering that these IT companies have to work according to the working times of American and European countries, the engagement of women at night is permitted, and that permission is accorded by separate circulars of the government as part of IT policy. That does not mean that IT company employees are not employees or workmen, and labor Acts are not applicable to them.

Thank you, Madhu, for sharing the checklist. I will reach out to you in case I need further assistance. Thank you for your generous support in this matter.

Dear SLG, In Karnataka, outright exemption from labor laws does not exist. However, the Industrial Employment Standing Order provides exemptions for IT/ITEs for a certain period, subject to specific conditions. Otherwise, all labor laws are applicable and must be complied with.

Useful Resource on Labor Law Compliance Audit
Find a useful link on Labor Law Compliance Audit on YouTube. It may be beneficial to you.

https://www.youtube.com/watch?v=W8Dkey1HLF0&t=132s

Thanks and best wishes,

Regards, Ram K Navaratna
HR Resonance
Bangalore
[Website: http://www.hrresonance.in - HR RESONANCE - Human Resource Development, Industrial Relations, HR/Labor Law Compliance Audit, Training, Recruitment, and other HR-related services]

The same can be modified to comply with your state regulations. What is important is the Shops Act, which is state-specific.

Could you please share the registers and displays to be maintained in Karnataka State? What you have shared is really mind-blowing.

Regards, Jai Shankar. S

Dear Madhu, Under compliance, it is mentioned that we need to display abstracts, etc., on notice boards. Compliance for Remote Work In organizations that are working completely from home, how can we ensure that this compliance activity of displaying on notice boards is taken care of? Please suggest.

Under a working from home arrangement, there should be an application through which your employees can mark their presence for work. In that app or website, you can upload the abstracts of the Act. This will meet the legal requirements. Employee Rights Awareness What is required is that the employees should know their rights under different Acts, and the way in which you communicate is your decision. Since everyone was working together in an office, the simplest way was to display it on a notice board, and that is why this provision was made in the Acts.

Dear All,

This is to inform you all that IT/ITES companies are governed by the regulations of the Software Technology Parks of India (STPI), which is an organization set up by the Government of India. STPI acts as a bridge between the respective State Governments and the industry. The activities of IT/ITES are entirely different from those of manufacturing sectors and can be classified as a service industry.

In my opinion, the Shops & Establishments Act is not mandatory. Hence, there is no scope for the Labor Department to mediate.

These organizations are mostly multinational companies. The Union Government has granted some exemptions in labor laws and tax exemptions since they provide employment and contribute to the country's GDP. The growth of professional employment is significant, and individual scaling up in the service sector is also rapid.

They also adhere to rules such as providing health insurance, PF, and bonuses to their employees. This dedication needs to be appreciated despite minor hiccups here and there.

With regards,

Are you talking about IT & ITES companies in India or some foreign country? In India, there is no such exemption from any labor enactment. Even the provisions of the Industrial Disputes Act are applicable to IT companies. True, there are some exemptions given to them following the IT Policies, but that will not replace the labor acts. The provisions relating to the engagement of women during the night are not available exclusively for IT companies but are available to other sectors as well.

The fact that IT companies have their headquarters in foreign countries is not a genuine reason to get exemptions from labor laws. If foreigners want to set up in India, they should follow the rules of India. Permission to set up a unit in India does not mean that they can run it without registration, without following the health, safety, and welfare provisions applicable to other companies in India. IT companies are required to get registration under the state Shops and Commercial Establishments Act, submit annual returns, follow the rules relating to the payment of wages, enforce all social security schemes in India, and so on. Merely being in the Soft Technology Park of India does not mean that they can run the establishment as they like. As already mentioned, in case of disputes, the Officer concerned of the Labor Department can intervene and mediate. What's more, they can also form a Trade Union.

Dear Sir, Please share the updated Factories Act 1948 Checklist for Karnataka State.

With regards,
S. Vaitheeswaran