The petitioner is aggrieved by the non-registration of the petitioner; under the Kerala Shops and Commercial Establishments Act, 1960 [for brevity “the Shops Act”], which the petitioner had applied for, by Exhibit P3. The petitioner is admittedly a franchisee of the Mulamoottil Leasing and Hire Purchase Limited. The petitioner, in the capacity of a franchisee, was intending to open a branch of the principal in Chengannur. An application was made, as evidenced by Exhibit P3. The same had been returned by Exhibit P5.
2. In Exhibit P5 it is not clear as to what was the reason for returning the application; but it is indicated that as per reference No.(2) in Exhibit P5 the request had already been rejected. The petitioner contends that he had not received such a rejection order. In any event, an appeal was filed from Exhibit P5, which is rejected by Exhibit P7. The Appellate Authority found that the employer's name is not clear and also that a franchisee cannot make an application, since the application has to be made by the principal itself.
2. The learned counsel appearing for the petitioner takes me through the definition of “employer” under the Shops Act, which reads as under:
“Sec.2(7) - “employer” means a person owning, or having ultimate control over the affairs of, an establishment and includes the manager, agent or other person acting in the general management or control of an establishment”.
From the definition, it is very clear that an 'employer' includes a manager, agent or any other person who has the general management or control of an establishment. A franchisee has total control of the particular establishment, as is evidenced by the franchisee agreement. In any event, the legislation under which the registration is sought is a welfare legislation; enjoining obligations on the employer as against any unfair treatment of the employee and providing for inspection as also penal consequences in the event of non-compliance of the provisions; all aimed at the avowed objective of granting an effective platform to the employee for redressal of grievances; as also ensuring security of employment to the employees of shops and establishments, specifically indicated in the Statement of Objects and Reasons.
3. The object and preamble reads as under:
Object.-
“An Act to consolidate and amend the law relating to the regulation of conditions of work and employment in shops and commercial establishments in the State of Kerala”.
Preamble.-
“Whereas it is expedient to consolidate and amend the law relating to the regulation of conditions of work and employment in shops and commercial establishments in the State of Kerala”.
Registration, hence, should be the rule, especially when a person takes upon himself the liability of compliance with the statutory provisions. A franchisee carries on the activities of the principal, as an agent and the liability to comply with the provisions of the enactment, to any employees appointed and employed by him would be the responsibility of the employer; as defined in the statute; herein the franchisee.
4. In the above circumstances, the petitioner shall produce the franchisee agreement within a period of two weeks from today and the application shall be considered and registration granted within two weeks therefrom. Exhibits P5 and P7 shall stand set aside.
Writ petition allowed. No costs.
vku.
Sd/- K.Vinod Chandran, Judge ( true copy )