Amendments to Abkari Act and Foreign Liquor Rules Addressed; Labour Welfare Measures Reinforced
The Kerala High Court, in a landmark decision dated April 1, 2026, resolved a significant dispute concerning the working hours of bar and hotel employees in the state. The case, brought forth by the All Kerala Bar Hotels & Restaurant Employees Association (CITU), challenged amendments to Sections 24 and 29 of the Abkari Act and the Foreign Liquor Rules, 1953. The modifications had altered working hours, allegedly infringing upon the rights of employees as per the Minimum Wages Act and other labour laws.
The division bench, comprising Chief Justice Soumen Sen and Justice Syam Kumar V.M., addressed the grievances by facilitating a meeting among all stakeholders, including government representatives and labour union leaders. The meeting, convened as per the court's interim order, resulted in a comprehensive resolution ensuring compliance with labour laws, particularly regarding overtime wages.
The court highlighted the Kerala Shops and Commercial Establishments Act, 1961, which mandates that employees working beyond statutory hours are entitled to overtime wages at twice the ordinary rate. The Labour Department has been directed to conduct regular inspections to ensure adherence to these provisions, thereby safeguarding worker welfare.
The court acknowledged the proactive steps taken by the Labour Department and noted that the stakeholders' concerns were substantially addressed, leading to the disposal of the public interest litigation. This decision underscores the judiciary's role in balancing regulatory amendments with employee rights, ensuring that legislative changes do not contravene established labour standards.
Bottom Line:
Amendments to the Abkari Act and Foreign Liquor Rules, 1953 - Challenge to variation in working hours of bar and hotel employees in Kerala - Compliance with Minimum Wages Act, Kerala Shops and Commercial Establishments Act, and other labour laws emphasized - Resolution reached among stakeholders ensuring compliance with overtime wages and worker welfare.
Statutory provision(s): Abkari Act Sections 24 and 29, Foreign Liquor Rules 1953, Minimum Wages Act, Kerala Shops and Commercial Establishments Act 1961 Section 7.
