The Kerala High Court recently held that employees working in co-operative societies, which are governed by the Kerala Co-operative Societies Act (the Act), are entitled to the benefits of labour welfare legislations [Cherplassery Co-operative Hospital Ltd v State of Kerala & Ors].

Justice Murali Purushothaman held that the Kerala Co-operative Societies Act of 1969 doesn't exclude employees of co-operative societies from enjoying the benefits of labour welfare laws.

The single-judge specifically mentioned the following four statutes whose benefits can be claimed by employees of co-operative societies:

• The Kerala Shops and Commercial Establishments Act, 1960;

• The Minimum Wages Act, 1948,

• The Maternity Benefit Act, 1961; and

• The Kerala Industrial Establishments (National and Festival Holidays) Act, 1958.

"The employees of the Co-operative Societies are entitled to the benefits of the said labour legislations. The Kerala Co-operative Societies Act and Rules do not exclude the operation and applicability of the aforesaid labour laws to Co-operative Societies," the Court said in its judgment.

The judgment was passed on a petition filed by Cherplassery Co-operative Hospital (petitioner) against the decision of a labour officer to issue an inspection note to them to assess compliance with labour legislations.

Even after the petitioner objected on the ground that their employees were governed solely by the provisions of the Kerala Co-operative Societies Act, the labor officer sent them a notice demanding documents related to the three legislations mentioned above and also sought proof of exemption from them.

Before the High Court, the petitioner contended that its employees are regulated only by the provisions of the Kerala Co-operative Societies Act, thereby excluding the jurisdiction of labour law authorities.

They added that the Act subjects the petitioners to regulation, supervision, and control by the Registrar and the Co-operative Department.

After referring to various precedents, the Court noted that several other labour legislations such as the Payment of Wages Act, the Employees' Provident Funds Act and the Kerala Labour Welfare Fund Act had jurisdiction over cooperative societies.

The Court emphasized that the petitioners were not exempt from the Kerala Shops and Commercial Establishments Act as every cooperative society falls under the definition of 'establishment' in Section 2(4) of the Kerala Shops and Commercial Establishments Act.

Further, it noted that certain government notifications issued in 1972 and 2014 made the Maternity Benefits Act and the Kerala Industrial Establishment (National and Festival Holidays) Act applicable to establishments under the Kerala Shops and Commercial Establishments Act thus bringing co-operative societies within their scope.

The Court also directed the petitioners to maintain registers and records as provided under Section 18 of the Minimum Wages Act and Rules.

"The petitioner being a Cooperative Society and a private hospital, the provisions of the Minimum Wages Act are applicable and is liable to maintain registers and records as provided under Section 18 of the Minimum Wages Act and Rules framed thereunder," the Court held in its judgment.

Consequently, the Court dismissed the writ petition.

The petitioners were represented by advocate A Rajeswari.

Government Pleader Justin Jacob appeared for the State.

[Read Judgment]