Registration Under Shops & Establishment Act Alone Doesn’t Qualify Entity a ‘Shop’: Kerala HC

The Kerala High Court ruled that mere registration under the Shops and Commercial Establishments Act does not qualify an entity as a “shop” under law.

It upheld the revocation of the ESI Code for the Kerala Electrical Wiremen and Supervisors Association, stating that self-employed individuals forming an association are not covered under the Employees State Insurance (ESI) Act unless employed by the association. 

The Court emphasized that systematic commercial activity with employees is required for ESI eligibility.

It also warned against misuse of ESI benefits, dismissing the Association’s appeal and partially allowing ESIC’s appeal.