Regarding Hr Rule In A Co-operative Society

Dear Sir,

I recently joined a cooperative society which has been running for 6 years. I am the only HR here, and there are no rules and regulations regarding leave, salary, etc. The company wants me to set rules and regulations for the company, and I don't have much experience in this area. I am doing the best I can, and they are satisfied with my work, but I need guidance on what the rules and regulations should be.

Thank you.

Cooperative Societies are registered and governed by the provisions of the Cooperative Societies Act of the State. Each State has its own Act and Rules. For Cooperative societies functioning in more than one State, the Multi-State Cooperative Societies Act 2002 is applicable.

Cooperative societies operate in various sectors like banking, dairy, industry, labor, credit, handlooms, housing, etc. Labor laws applicable to public sector and private sector organizations also apply to cooperative societies.

Rules and Regulations of employment (Standing Orders) can be framed by the Board of Directors (or Committee) of the Society, keeping the provisions in the Coop Societies Act and Rules in mind, and getting them registered from the office of the Registrar of Cooperative Societies. Standing Orders can also be certified as per the provisions of the Industrial Employment (Standing Order) Act 1946.

Hi Mishra,

Being a member for 2 years, you might have gained a lot of knowledge to handle the position. Take the bare acts and formulate rules and regulations with the approval of the concerned parties.

Standing Orders Act is not applicable to Co-op societies if they are governed by any rules under Sec 13B of the Act.

Varghese Mathew

I agree with Mr. Varghese Mathew. However, I may clarify that in the case of Cooperative Societies in Kerala, provisions for employment in cooperatives are made in Section 80 of the Kerala Cooperative Societies Act, 1969, and Rules 182 to 201 of the KCS Rules. According to the type and financial position, the societies are classified, and the staff strength and pay scales are fixed by Section 80. The rules prescribe age limits, probation, promotion, qualifications, employment assistance to dependants of employees dying in service, remuneration and allowances, traveling allowance, other allowances, leave rules, medical assistance, duties, responsibilities, conduct, and disciplinary actions, etc. Rule 196 prescribes that "necessary bylaws shall be framed and implemented by the societies regarding the duties and responsibilities of employment not inconsistent with the provisions of the KCS Act and other Acts relevant to it.

The said provisions are available only in the Kerala Cooperative Societies Act, 1969, and as such, the provisions of the Industrial Employment (Standing Orders) Act, 1946, may not be applicable to cooperatives in Kerala. Since the member who raised the question is from Delhi, the Kerala Act and Rules will not be applicable there. In Maharashtra, Cooperative Banks are not governed by the Industrial Disputes Act, 1947, but by the Bombay Industrial Relations Act, 1946.

Mr. Kutty,

Thank you, Mr. Kutty. I would like to add that in Kerala, the ID Act and POG Act alone are applicable to Co-op societies. All other matters are governed by KSR, Co-op rules, and the by-laws of societies.

Varghese Mathew

Thank you, Mr. Mathew.

Since Cooperative Societies are registered and controlled under provisions of the Cooperative Societies Act of the State, the provisions vary from State to State. I am glad to note that for all matters relating to employment in Cooperative Societies in Kerala, provisions are made in the Coop Act and Rules or KSR. Such specific Rules are not in force in other States, and hence the Society (its BoD) has to frame the Service Rules or Standing Rules or Standing Orders or Sub Rules or Special Bylaws, by whatever name it is called, for staff matters and get it certified by the Registrar/Joint Registrar of Cooperative Societies, who is having jurisdiction over the Society. If such provision is also not made in the Coop Act and Rules of the State for framing the Service Rules, then the only option left out is IE(SO) Act 1946.

I think the Kerala Shops and Establishment Act, Minimum Wages Act 1948, Payment of Wages Act 1936, Employee Compensation Act 1923, etc., are also applicable to Cooperatives in Kerala. For factories run by Cooperatives like RUBCO, RAIDCO, etc., the Factories Act 1948 may also be applicable.

I will be glad to update my knowledge.

Service rules may be framed based on the nature of functions of the organization. Copy and paste techniques will not work, especially for cooperative societies since the working hours, nature of work, number, and designation of employees may differ. For example, a milk producers' cooperative society starts functioning from 6 AM and again from 2 PM for the collection of milk from its members. A weekly off cannot be given to such a society as there is no holiday for milk procurement, but employees must be given a weekly off.