Karnataka proposes relief under Shops Act via draft amendment to the Rules

The draft Karnataka Shops & Commercial Establishments (Amendment) Rules, 2025 aims to ease compliance for micro employers by exempting units with fewer than 10 employees from Rule 24, subject to Gazette finalisation.

Key Highlights of the Draft

Expected Impact

Why the Sudden Push to Reduce Compliance Burden?

In parallel with DPIIT’s moves on decriminalising minor offences, the Centre is fast-tracking compliance reduction to improve ease of doing business. The proposed Jan Vishwas (Amendment of Provisions) Bill, 2025 targets amendments across multiple Central laws to streamline regulatory requirements.

State-level Shops & Establishments updates often dovetail with this central agenda.

Action Points for Employers

• Verify current headcount (including contract/part-time) to assess Rule 24 applicability.
• If eligible (<10 employees), prepare for reduced filings post-final notification.
• Maintain essential records & employee safeguards even where Rule 24 relief applies.
• Track Gazette notifications for final text, date of effect, and any conditions.

Karma Global – Shops & Establishments Compliance (Pan-India)

Karma Management manages end-to-end regulatory obligations under State S&E Acts—registration/renewals, registers & returns, policy drafting, inspection readiness, and ongoing advisory.