At a glance

• State of Karnataka has enacted the Karnataka Shops and Commercial Establishments (Amendment) Act 2026 (Amendment Act), which came into force on 4 September 2026 and introduces significant changes to employer compliance obligations.
• Establishments employing ten or more workers and registered under the Occupational Safety, Health and Working Conditions Code 2020 (OSH Code) are now exempt from obtaining a separate registration under the Karnataka Shops and Commercial Establishments Act 1961 (S&E Act).
• The Amendment Act digitises key administrative processes, introduces service certificate requirements for exiting employees, and prohibits employers from retaining employees’ original certificates and documents during the term of employment.
• Several offences are now subject to enhanced monetary penalties instead of imprisonment, while a revised compounding framework and a statutory right of appeal have also been introduced.
• The reforms brought under the Amendment Act align Karnataka's regulatory shops and establishments framework more closely with India's labour codes and reflect a broader trend among States to reduce duplicative registration requirements.

We would like to express gratitude to JSA for their contribution on this publication.

The State of Karnataka has enacted the Amendment Act, which came into force on 4 September 2026. The Amendment Act introduces a range of changes intended to amend the S&E Act, simplify compliance requirements, and bring...

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