The Government of Karnataka has published a draft notification proposing a key amendment to the Karnataka Shops and Commercial Establishments Rules, 1963, offering regulatory relief to smaller establishments in the state.
The draft, titled the Karnataka Shops and Commercial Establishments (Amendment) Rules, 2025, was issued under Section 40 of the Karnataka Shops and Commercial Establishments Act, 1961 (Karnataka Act 8 of 1962).
🛍️ Key Highlights of the Draft Rules
🔸 1. Exemption from Rule 24
- The amendment adds a new proviso to Rule 24 of the 1963 Rules.
- As per the draft:
“Provided that compliance under rule 24 is not required where every employer in his establishments employed less than ten employees.”
🔸 2. Aimed at Small Employers
- The proposed change exempts establishments with fewer than 10 employees from the procedural or filing requirements under Rule 24.
- This offers significant relief to micro and small businesses, such as small retail shops, local service providers, and startups.
🔸 3. Effective Date
- The amendment will come into force from SEPTEMBER 11TH, 2025
📝 Call for Public Comments
- The Labour Department invites objections or suggestions from stakeholders within 30 days of publication.
- Submissions should be addressed to:
Secretary to Government, Labour Department
Room No. 414, 4th Floor, Vikasa Soudha,
Dr. B.R. Ambedkar Veedhi,
Bengaluru – 560001.
⚖️ Regulatory Context: What is Rule 24?
Rule 24 typically pertains to record maintenance or returns that employers must file, including employee registers, working hours, wage details, etc.
This amendment would reduce compliance burdens for establishments that have less than 10 employees, aligning with the government’s broader ease of doing business goals.
📊 Implications
| Stakeholder | Impact Summary |
| Micro Enterprises | Reduced compliance cost and paperwork |
| Labour Inspectors | Clearer segmentation of enforcement responsibilities |
| Large Employers | No change; Rule 24 still applies |
🧾 Conclusion
The draft amendment reflects the Karnataka Government’s efforts to simplify labor law compliance for small businesses while maintaining oversight over larger establishments. Once finalized, it could bring much-needed flexibility for the state’s informal and semi-formal business sectors.