Employee Count Hits 30 in Karnataka: What HR Compliance Updates Are Needed?

Astha.ach
Hi, greetings to all. I wanted to know if a company (in Karnataka) needs to update any HR compliance or policies when the number of employees increases from 25 to 30. Also, do we need to update the shop and establishment certificate in this case? Please guide me.
Madhu.T.K
Registration Certificate for Shops and Commercial Establishments

The RC for shops and commercial establishments is issued for five years. At the same time, Section 5 of the Karnataka Shops and Commercial Establishments Act provides that any changes shall be communicated to the Inspector within fifteen days. The number of employees is one of the particulars to be furnished for registration, and as such, any change in the number of employees should be communicated in the prescribed form. I think they have a combined form for registration, renewal, and communicating the changes. You can use it.

Practical Challenges in Communicating Employee Changes

Practically, it is not possible to communicate the changes in the number of employees every time because the number of employees will change every month in some cases. As such, it is practically not possible to revise the RC every time a new employee, which exceeds the number, joins. This is impractical, especially when the RC is issued for a five-year period. Therefore, no establishment will communicate the change in the number of employees but will take a call when the renewal is due. An increase of five employees is not so serious when the fee for registration covers the number of employees. For example, if you have paid Rs. 8000, which pertains to a number of employees of 20 to 49 employees, then any increase within this 20 to 49 should be taken as engaged even though the number at the time of registration is 20 or 25. Hence, practically, there is no need to communicate the change if the number of employees is within the permitted limit (of 49 employees).
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