Are HR and Finance Managers Really Exempt Under Kerala Shops Act 1960? Let's Discuss!

Exemptions Under THE KERALA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT 1960

Under THE KERALA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT 1960, "employee" means a person wholly or principally employed in, and in connection with, any establishment and includes apprentices. However, there is an exemption for managers as follows:

3. Exemptions.-(1) Nothing contained in this Act shall apply to:

(a) persons employed in any establishment in a position of management.

There may be several managers such as HR, Administration, Finance, and so on in an establishment. Are these designations totally exempted under THE KERALA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT 1960? Do any specific court rulings exist regarding the definition of a manager?

All inputs are welcome.

Understanding the Kerala Shops and Commercial Establishments Act

As per the Kerala Shops and Commercial Establishments Act, all individuals employed in and in connection with the establishment are considered employees. This includes managers as well. However, the manager who has control over the affairs of the establishment falls under the definition of an Employer as outlined in section 2(7) of the Act. It should be noted that the term used here only applies to that individual (singular) who is either the owner of the establishment or the manager with control over it. This implies that not all managers, by function or designation alone, will be considered employers.

Exemptions for Managers and Traveling Employees

Section 3 explicitly states that this Act does not apply to individuals in managerial positions and those whose work primarily involves travel (such as sales officers). The Act focuses on ensuring the health, safety, and welfare of employees, addressing aspects like working hours, overtime pay, holidays, and leaves. Simply put, the holidays declared by the establishment do not apply to them; they are not entitled to overtime wages, and they do not have the right to take leave, among other provisions.