Summary
- The Karnataka Government has enacted the Karnataka Shops and Commercial Establishments (Amendment) Act, 2026, effective immediately from September 4, 2026.
- This amendment simplifies compliance by allowing digital registration, exempting certain establishments from duplicate registration, and mandating service certificates for employees.
- Notably, employers are now prohibited from retaining original documents of employees during their tenure.
- The revised penalty framework introduces increased fines and a new compounding process for offences, significantly impacting employer-employee relations in the state.
Join the discussion — sign up to comment, upvote, and save articles.