Co-operative Employees Commission Statute, No. 01 of 1998.

Provincial Council Notifications

My. No. SPC/CS/1/84.

SOUTHERN PROVINCIAL COUNCIL

Co-operative Employees Commission of the Southern Province No. 01 of 1998

No. 1,066 – FRIDAY, FEBRUARY, 1999

I do hereby append below to the notice of all, the above statute passed on the 14th day of October, 1998 by the Southern Provincial Council of the Democratic Socialist Republic of Sri Lanka, which was sanctioned by the Governor of the Southern Province on the 17th day of December, 1998.

P. M. Thilaka Kalyani, Council Secretary, Southern Provincial Council.

Council Secretary’s Office, Southern Province, Hilltop Building, Galle, .. 30th December, 1998.

CO-OPERATIVE EMPLOYEES COMMISSION OF THE SOUTHERN PROVINCE STATUTE, No. 01 OF 1998

A Statute to establish a Co-operative Employees Commission of the Southern Province, to make special provisions in respect of employees of Co-operative Societies in the Southern Province and to provide for matters connected therewith or incidental thereto.

Short title and the date of operation.

1. This Statute may be cited as the Co-operative Employees Commission of the Southern Province Statute, No. 01 of 1998 and, shall came into operation on such date as the Minister may, after the approval by the Provincial Council of the Southern Province, appoint by order published in the Gazette (herein after referred to as the “appointed date”).

Power of Minister to exempt Cooperative societies from the succeeding provisions of this statute.

2. The Minister may, by Order published in the Gazette, exempt from the succeeding provisions of this statute.

(a) any such class of Co-operative societies as shall be specified therein ; or

(b) any such Co-operative society as shall be so specified,

and accordingly the expression ‘Co-operative Society’, wherever it occurs in such provisions, shall be read and construed to mean a Co-operative Society in respect of which any such Order is not for the time being in force.

Part ICONSTITUTION, POWERS AND FUNCTIONS OF THE CO-OPERATIVE EMPLOYEES COMMISSION OF THE SOUTHERN PROVINCE

Establishment of the Co-operative Employees Commission.

3. For the purposes of this statute an Authority to be called and known as the Co-operative Employees Commission of the Southern Province shall be established.

Constitution of the Commission.

(1) The Commission shall be constituted in accordance with the succeeding provisions of this section.

(2) The Commission shall consist of Three members appointed by the Minister.

(3) A person shall not be qualified for appointment as a member of the Commission, if he is-

(a) an Employee or a past Employee of a Co-operative society ; or

(b) a person who is a member of any body of persons which, in the opinion of the Minister, is a staff association, or trade union, which has as its objects, or One of its objects, the regulation of salaries, wages or conditions of service of any category of persons employed by Co-operative societies; or

(d) a person who is for the time being a Member of Parliament or a member of a Provincial Council or of a Local Authority.

Incorporation of the Commission.

5. The Commission shall be a body corporate with perpetual succession and a common seal and may use and be used in its corporate capacity.

Terms of office of members.

6. Each member of the Commission shall hold office for a period of Three years from the date of his appointment.

Provided that notwithstanding the term of any such appointment-

(a) any such member may at time resign his office or be removed from office by the Minister; and

(b) any such member shall, upon his becoming disqualified in terms of Section 4 (3), ipso facto, vacate his office ;

Provided, further, that any person who is appointed to fill any vacancy caused by the death, resignation or removal from or vacation of office, of any such member shall unless he vacated office earlier, hold office during the period equal to the unexpired portion of the term of office of the member in whose place is appointed and no longer.

Chairman and conduct of business.

(1) The Minister shall appoint two members of the Commission to be respectively its Chairman and Vice Chairman. The Chairman shall preside at all meetings of the Commission of which he is present. In the absence of the Chairman from any meeting of the Commission Vice Chairman shall preside thereat.

(2) Two members shall constitute the quorum for a meeting of the Commission.

(3) If at any meeting only two members of the Commission are present and such members are divided in opinion as to the decision to be taken on any question, such question shall be referred to a meeting at which the three members of the Commission are present.

(4) If at any meeting, at which the three members of the Commission are present, the members of the Commission divided in opinion as to the decision to be given on any question, such question shall be decided according to the opinion of the majority of the members present, but if the members are equally divided, then, the Chairman shall have a casting vote.

(5) The Commission may regulate its own procedure in any matter not provided for in this statute or any regulation made there under.

(6) Any act or proceeding of the Commission shall not be invalid by reason only of the existence of a vacancy among its members or any defect in the appointment of any of its members.

Remuneration of members.

8. The Chairman and the members of the commission shall be paid such remuneration and such allowances as may be determined by the Minister, in consulation with the Provincial Minister in charge of the subject of Provincial Finance.

Secretary and other officers.

(1) There shall be a Secretary of the Commission who shall be a member of the Sri Lanka Administrative Service.

(2) The other members of the staff of the Commission shall be appointed from the Provincial Public Service.

Taking of oaths by members and officers of the Commission.

10.

(1) The members of the Commission shall, on first appointment, take an oath or make an affirmation in the form set out in the Schedule to this statute.

(2) The Secretary to the Commission, and such of the other officers of the Commission as may be required so to do by the Chairman thereof, shall, on first appointment, take an oath or make an affirmation in the form set out in the Schedule to this statute.

Powers of the Commission.

11.

(1) The Commission shall have the following powers :-

(a) to determine all matters relating to methods of recruitment to, and conditions of employment of employees of, co-operative societies, and the principles to be followed by such societies in making appointments and making promotions from one post in a co-operative society to another post in the same society ;

(b) to conduct examinations for recruitment as employees of co-operative societies or to appoint boards of examiners for the purpose of conducting such examinations and to charge fees from candidates presenting themselves for examinations ;

(c) to determine the qualifications necessary for appointment to any such post, to fix the scales of salaries to be attached to any such post or posts in any class or grade, to revise or adjust such scales of salaries, from time to time, in consultation with the Provincial Commissioner and to establish such consultative machinery as the Commission may deem necessary to assist it in determining the remuneration and conditions of service of co-operative employees ;

(d) to require co-operative societies to pay salaries in accordance with the salary scales fixed by the commission for any post or posts in any class or grade ;

(e) to determine the procedure or procedures to be followed by any co-operative society in exercising its rights of disciplinary action against its employees, to call upon any co-operative society to commence disciplinary inquiries against its employees and to complete such inquiries within a time stipulated by the Commission, and to hear appeals arising out of any disciplinary orders made by any co-operative society;

(f) to call upon any co-operative society to keep the prescribed records relating to employees of that society ;

(g) to call upon any co-operative society to furnish before a specified date such files, other documents or information as the Commission may require in respect of any employee of that society ;

(h) to nominate a panel or panels of two officers to make such inquiries as are necessary on appeals that are referred by the Commission to such panel or panels and to report thereon to the Commission ;

(i) to require any co-operative society to carry out such instructions, including instructions relating to reinstatement, as may be given by the Commission in regard to any employee of such society, where the conduct of the employee has been the subject of an inquiry and the employee had appealed to the Commission against the decision of the society ;

(j) to determine the general principles in accordance with which gratuity or other benefits may be granted to employees on the termination of their services ;

(k) to advise the Minister, in consolation with the Commissioner, in regard to the exemption of any cooperative society or class of co-operative societies from the operation of this Statute ;

(l) to exercise such other powers in relation to co-operative societies and their employees as may be vested in the Commission by Order made by the Minister after obtaining the approval of the Provincial Council and published in the Gazette.

(m) to direct any relevant co-operative societies to carry out the instructions as may be given by the Commission after hearing an appeal made to the Commission against a transfer of a co-operative employee done under Section 22(1) of this statute.

(2) In the exercise of the powers vested in the Commission by subsection (1), the Commission may modify, vary or revise or set aside any decision or determinations made by the Commission.

Financial Provisions.

12. The expenses of the Commission shall be paid out of the moneys provided for the purpose by the Annual Financial Statement of the Provincial Council of the Southern Province.

Part IICO-OPERATIVE SOCIETIES AND THEIR EMPLOYEES

Co-operative society to be an employer.

13. A co-operative society which for the time being pays out of its funds the salary and other emoluments of any employee shall be deemed to be the employer of such employee.

Co-operative societies and their employees to be subject to directions of the Commission.

14. Any Co-operative society, and any employee of such society, shall be subject to such directions as may be given by the Commission under this statute, and all decisions of the Commission in the discharge and exercise of its functions and powers under this Statute, subject to the provisions of Section 1 (2), shall be final, and shall be binding on all such co-operative societies and on the employees of such societies as are not exempted from the operations of this Statute by Order made under Section (2) by the Minister.

Directions of Commission to be binding upon employees of Cooperative Societies.

15. all directions given by the Commission in regard to any employee of any co-operative society, subject to the provisions of Section 11 (2), shall be final and binding upon such employee as if such directions are given by such society.

Changes effected by this Statute.

16. Unless the Commission otherwise directs, all directions given by the Co-operative Employees Commission of the Southern Province established on 01st May, 1991 by the Minister in charge of the subject of Co-operatives, including the directions and orders given in respect of Co-operative Societies and their employees relating to –

(a) the determined scales of salaries, conditions of and grading ;

(b) the procedure to be followed in the performance of the functions of co-operative societies ;

(d) all legal proceedings already commenced ;

(e) all regulations made and circulars issued ; and

(f) all appointments made and all promotions given,

shall be valid and effective as if given by the Co-operative Employees’ Commission of the Southern Province established under this Statute.

Examination of the proficiency of serving employees and specifying new conditions of service.

17.

(1) The Commission may, in its absolute discretion, require any employee to satisfy the Commission, by examination or otherwise, of his proficiency and fitness to hold that office ; Provided that the preceding provisions of this subsection shall apply only to such category or categories of employees as may be prescribed by the Commission.

(2) Where the holder of an office to which subsection (1) applies fails to satisfy the Commission of his proficiency and fitness to hold such office, the Commission shall endeavour to place him, with his consent, in an office which, in the opinion of the Commission, is commensurate with his abilities, and in default of such placement, the Commission may, in its absolute discretion, require that his employment be terminated by his co-operative society in accordance with the terms and conditions of service then applicable to him or where no such terms exist, after giving reasonable notice.

(3) Where the holder of an office to which subsection (1) applies opts to accept the terms and conditions of service prescribed by the Commission, he shall not be entitled to such terms and conditions of service, unless and until he has satisfied the Commission in accordance with the provisions of subsection (1).

Residential qualifications.

18. No person shall be appointed to any post in a co-operative society in any district within the Southern Province unless that person has been resident within that district for a period of at least two years:

Provided, however, that where in the opinion of the commission no suitable candidate is available in any district for any post in any co-operative society in that district, the Commission may permit that society to fill that post by appointing a suitable candidate from among the candidates residing within the other districts in the Southern Province.

Scales of salary of employees to be determined according to grading of a co-operative society and the grade or class of employees.

19. Any person appointed to a post in a co-operative society shall be assigned the scale of salary pertaining to that post in accordance with the grading of such society and the grade or class of employees as determined under Section 29(1).

Secondment of Provincial Public Servants.

20. Notwithstanding any other provisions of this Statute, the Commission may, with the approval of the Minister and of the Provincial Public Service Commission and with the consent of the person and the co-operative society concerned, appoint to any office in the co-operative society, a person in the service of the Provincial Public Service and seconded for service in that society for that purpose, for such period and on such terms and conditions as the Commission may approve.

For the purposes of this section, ‘Minister’ means the Provincial Minister in charge of the institution in which such person is employed.

Salaries of employees of cooperative societies.

21. Every co-operative society shall out of its funds pay the salary and other allowances, if any, of its employees.

Transfer of employees of cooperative societies.

22.

(1) A co-operative society shall have the power to transfer any employee of such society from any one of its work places to any other of its work places, and where such transfer is made for any reasons other than on disciplinary grounds, such transfer shall not adversely affect the emoluments of any such employee.

(2) The Commission shall have the power to transfer any employee of a co-operative society to another cooperative society as an employee of the latter society al the joint request of two employees holding posts of similar status, provided that the concurrence of the respective employers has been previously obtained.

Dismissal and punishment of employees of co- operative societies.

23.

(1) No employee of a co-operative society shall be dismissed or otherwise punished by any co-operative society except in accordance with the provisions of this statute or any regulations made there under.

(2) Nothing in the preceding provisions of this section shall be deemed to render it unlawful for any cooperative society to continue and complete in accordance with the provisions that were in force prior to the date of the establishment of the Commission any disciplinary proceedings already pending against any of its employees in respect of any misconduct or breach of discipline or other cause of complaint which may have occurred or arisen before such dale.

Security furnished by employees of cooperative societies.

24.

(1) A co-operative society shall not require any employee to furnish by way of security an amount in excess of such sum as the Commission may prescribe.

(2) Any cash security furnished by any employee of a co-operative society shall be invested in a bank in the name of the society, and any interest accruing thereon shall be paid to that employee.

Regulations relating to employees.

25.

(1) The Commission may make regulations.

(a) in respect of the recruitment, appointment, Promotion, transfer, resignation and termination of services of employees of co-operative societies;

(b) Prescribing such terms and conditions of employment of such employees and providing for salary scales, the payment of allowances and gratuities, the grant of advances, promotion, leave, the interdiction of officers, the termination of appointments, dismissals or the imposition of any other form of punishment to such employees and any appeal there from; and

(c) in respect of such other matters relating to the terms of employment, or the conditions of service, of such employees as are deemed necessary.

(2) Every regulation made in respect of any matter referred to in subsection (1) shall be binding on all cooperative societies and their employees.

(3) Regulations made under the Co-operative Employees’ Commission Act, No. 12 of 1972 and published in the Gazettes Nos. 169/8 of 01.12.1981 and 849/7 of 13.12.1994 shall be valid and effective until the Provincial Minister of Co-operatives of the Southern Province makes regulations under this Statute.

Duties of Cooperative society in respect of its employees.

26. Every co-operative society within the Province shall –

(a) keep and maintain in respect of every one of its employees the prescribed registers or records, and enter therein all such particulars relating to each such employee as may be prescribed;

(b) furnish to the Commission such returns or reports relating to its employees as may be prescribed or such information as the Commission may, from time to time, require; and

(c) permit any member or servant of the Commission authorised in that behalf to enter any of its offices and to inspect and take copies of any books, accounts, records or other documents kept therein.

Provident Fund and the Employees’ Trust Fund.

27. Every co-operative society which is an employer and every employee of such society shall contribute periodically to the Employees’ Provident Fund and the Employees’ Trust Fund such amounts as may be required by law.

Co-operative Employees to be employees of the society and not of the Commission.

28. All employees whether employed prior to the date of coming into operation of this statute or thereafter, in any co-operative society shall be deemed to be employees of such society and shall be loyal to such society.

Part IIIPOWERS OF THE PROVINCIAL COMMISSIONER

Provincial Commissioner to grade societies and determine staff

29.

(1) The Provincial Commissioner shall have the power to grade each co-operative society for the purpose of fixing scales of salaries for posts in co-operative societies and to determine the grades or classes of employees and the number of employees in each such grade or class of any co-operative society and vary it as he may deem necessary from time to time.

(2) No Co-operative society shall employ any person in contravention of the determination made by the Provincial Commissioner under subsection (1).

The Commission to secure the concurrence of the Provincial Commissioner regarding qualifications, salary scales, & c.

30. The Commission shall with the concurrence of the Provincial Commissioner, determine the qualifications necessary for appointment to any post in co-operative societies, fix the scales of salary to be attached to any such post or posts in any class or grade and revise such scales of salaries from time to time.

Part IVMISCELLANEOUS

Removal of difficulties

31. If in giving effect to the provisions of this Statute any doubt or difficulty arises in respect of any matter or question for which no provision or no effective provision is made by this Statute, the Minister may, by order, remove or determine such doubt or difficulty. Every such order shall be published in the Gazette with the approval of the Provincial Council and upon such publication shall have the force of law and be as valid and effectual as if it were herein enacted.

Commission to make regulations.

32.

(1) Unless otherwise expressly provided, the commission may make all such regulations as may seem to the Commission to be necessary for carrying out the provisions of this Statute, or giving effect to the principles thereof, including regulations for all matters for or in respect of which regulations are authorised or required to be made under this Statute and all matters stated or required by this Statute to be prescribed.

(2) No such regulation shall have effect until it has been approved by the Minister in charge of the subject of co-operatives in the Southern Province and notification of such approval has been published in the Gazette.

(3) Upon the publication in the Gazette of any notification under subsection (2), the regulation to which the notification relates shall be as valid and effectual as though it were herein enacted.

Immunity of individual members of the Commission

33. No action, prosecution or other proceeding whether civil or criminal, shall be instituted or maintained against any individual member of the Commission in respect of any decision taken or act done or omitted to be done by him his capacity as such member or by the Commission in its corporate capacity.

Engagement of contractual, casual or daily paid employees.

34. Notwithstanding the provisions of this statute, a co-operative society may in the interests of its efficient operation –

(a) engage the services of an expert or any specialist for any defined term on a contractual basis with the prior approval of the Commission; or

(b) engage casual or daily-paid employees, or employees paid on a piece rate basis in contrigences and on essential situations.

Provided, however, that such employees shall not be employed for a period of over 30 days without the concurrence of the Commission.

No permanent appointment shall be made without the concurrence of the Commissions.

Offences.

35.

(1) Any Co-operative society or any officer of employee thereof-

(a) which or who contravence the provisions of this Statute; or

(b) which or who willfully neglects or refuses or fails to do any act required by the Commission to be done, or to furnish any information required for the purposes of this Statute by the Commission or other duly authorised person, or

(c) which or who willfully makes a false return or furnishes false information shall be guilty of an offence under this Statute.

(2) Every co-operative society or person which or who commits any offence referred to in subsection (1) shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding Five Thousand Rupees.

(3) Where any offence under this Statute is committed by a co-operative society, every officer of that society shall be deemed to be guilty of the offence, unless he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of the offence.

(4) On the conviction of any co-operative society for failure to carry out any such instructions given by the Commission as requires the reinstatement of any employee, such co-operative society shall be liable –

(i) to pay, in addition to any punishment that may be imposed on such co-operative society under subsection (2) a fine of one hundred rupees for each day on which the failure is continued after conviction thereof; and

(ii) to pay such employee the remuneration which would have been payable to him if he had been in such service on each such day and on each day of the period commencing on the date on which he should have been reinstated in service according to the instructions of the Commission and ending on the date of the conviction of such co-operative society, computed at the rate of salary or wages to which he would have been entitled if his services had not been terminated.

Any sum which a co-operative society is liable to pay under paragraph (ii) of this subsection may be recovered on the order of the Court by which it was convicted as if it were a fine imposed on it by that court and the amount so recovered shall be paid to the employee.

Interference with the Commission

36. Every person who, otherwise than in the course of his duty, directly or indirectly, by himself or by any other person, in any manner whatsoever influences or attempts to influence any decision of the Commission or any member thereof shall be guilty of an offence, and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding one Thousand Rupees or to imprisonment for a term not exceeding one year or to both such fine and such imprisonment.

Unauthorised discloser of information prohibited.

37. No member of the Commission, nor the Secretary of the Commission, nor any member of the staff of the Commission, nor any other person shall publish or disclose to any person, otherwise than in the exercise of his official functions, the contents of any document, communication or information whatsoever which has come to his notice in the course of his duties.

Communications of the Commission to be privileged

38. No person shall in any legal proceedings be permitted or compelled to produce or disclose any communication, written or oral, which has taken place between the Commission or any member, or officer thereof, and any co-operative society or any member of the committee of management of such society or officer thereof, in the exercise of, or in connection with the exercise of, any of the functions of the Commission, unless the Chairman shall consent in writing to such production or disclosure.

Application of the Industrial Disputes Act to co-operative Societies and their employees.

39.

(1) If an application has been made to the Co-operative Employees’ Commission by an employee in respect of any matter no application in respect of the same matter or substantially in respect of the same matter under Section 31 (b) of the Industrial Disputes Act, shall be entertained by any Labour Tribunal established under the Act.

(2) If an application has been made by an employee under Section 31(b) of the Industrial Disputes Act, in respect of any matter to any Labour Tribunal established under that Act, the Commission shall not entertain any appeal made to it by such employee in respect of the same matter or substantially in respect of the same matter.

interpretation

40. In this Statute, unless the context otherwise requires –

“Commission” means the Co-operative Employees Commission of the Southern Province ;

“Commissioner” means the Provincial Commissioner of Co-operative Development and Register of Cooperative Societies of the Southern Province ;

“Co-operative Society” means a society registered under the law relating to co-operative Societies and having its head office in the Southern Province and operating within the Southern Province ;

“District” means an administrative district within the Southern Province ;

“Employee” means an employee of a co-operative society within the meaning of this Statute ;

“Minister” means the Provincial Minister to whom the subject or function of co-operative development in the Southern Province has been assigned under this Statute ;

“Prescribed” means prescribed by regulation made by the Commission.

Sinhala text to Prevail in case of inconsistency.

41. In the event of any inconsistency between the Sinhala and Tamil texts of this statue, the Sinhala text shall Prevail.

Retrospective effect of the Provisions of this Statute.

42.

(l)This Statute shall be and for all purposes, be deemed to have come into operation with effect from the 01st of May, 1991. Without prejudice to anything to the contrary it shall be construed that the power and authority to appoint the three members of the Co-operative Employees’ Commission of the Southern Province under Section 3,4(1) and 4(2) of this Statute was vested in the Minister on the 01st of May, 1991 and that the establishment of the Co-operative Employee’ Commission of the Southern Province and the appointment of the three members thereof shall be deemed to have been validly made and effectively appointed from the 01st of May, 1991 by the Minister under the said provisions.

(2) If any appeal made to the Commission under this Statute.

(a) has been pending on the date on which this Statute came into operation, such appeal shall be considered as made under this Statute and shall be heard and determined under the provisions of this Statute ; and

(b) has been dismissed without considering the contents of such appeals on account of the absence of a lawfully constituted Commission, the relevant appellant may make an application in that respect to the Commission within a period of six months from the dale of coming into operation of this Statute and the Commission shall hear and determine such appeal.

SCHEDULES