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Thursday, February 20, 2014

HOSPITALS ARE "SHOPS" UNDER Kerala Shops & Commercial Establishments Act.

HOSPITALS ARE "SHOPS" 
UNDER Kerala Shops & Commercial Establishments Act.

In 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.

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