Hospital comes within the definion of a ‘Shop’

indexIn Lourdes Hospital v. Dr. Abraham Mathew, 2013 (4) KHC 347, the Kerala High Court held that a Hospital, even if it is involved only in charity work, comes within the definition of a ‘Shop’ under Section 2(15) of the Kerala Shops and Commercial Establishments Act, 1960. The court was dealing with the question of payment of gratuity to a superannuated employee. Relying on the definition of the Shop, the court held that Payment of Gratuity Act, 1972 adopts the definition of ‘Shop’ by reference and all establishments which were covered by the definition at the time of adoption, remains covered under the Gratuity Act. Hence, exemption notifications issued by the Government in favour of Hospitals under the Shops & Commercial Establishment Act, does not affect the coverage of the Gratuity Act. Therefore, the court directed the Hospital to pay gratuity to its retired employee.

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About Thomas Geeverghese

Advocate, Ernakulam
This entry was posted in Labour Law, Labour Law Kerala, Payment of Gratuity, Shops and Commerical Establishments and tagged , , , , , . Bookmark the permalink.

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