Kerala High Court in Cherplassery Co-Operative Hospital Ltd. vs. State of Kerala WP(C) No. 32291/2014, highlighted a crucial aspect regarding the employment conditions within cooperative societies. While acknowledging the Kerala Co-operative Societies Act, 1969 (“Societies Act“) as governing the service conditions of employees of the cooperative society, the Court emphasized that the fundamental labour laws of India also apply to them. The Court specifically noted the applicability of significant labour legislations such as the Kerala Shops and Commercial Establishments Act, 1960, the Minimum Wages Act, 1948, the Maternity Benefit Act, 1961, and the Festival Holidays Act. These laws ensure the enforcement and inspection of various welfare and social security measures for employees, which may not be fully addressed by the provisions of the Societies Act. Recognizing these enactments as essential social security measures operating in different domains with distinct purposes and objectives, the Court inferred that they should extend to charitable societies as well.
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