Are Cooperative Society Members or LLP Partners Exempt from Labor Laws? Let's Discuss

Is a member of a cooperative society exempt from labor laws?

My company wishes to appoint a cooperative society to manage the business. I would like to know whether the laws on working hours, weekly offs, ESI, and PF are applicable to them. Alternatively, I would like to know if the case is for a working partner of a firm, i.e., if I employ a partner in an LLP as an employee, whether the person will be covered by the above provisions.

Applicability of Labour Laws to All Establishments

Labour laws are applicable to all establishments irrespective of their constitution. There is no exemption if they outsource the operations to a cooperative society or a person who is a member/partner in an LLP. After all, why should you get an exemption from labour laws alone? Don't you want exemption from GST, Income Tax, Pollution certificate, license to run from the local self-government, etc.? Why do you want to run your business at the cost of employees?

Hi, your point is not clear.

Are you planning to appoint a society to manage your business?

What is the structure and agreement? Will they run it by leasing your facility, or will they run it while the profit and costs are your own? In that case, how do you propose to remunerate them? The answer will depend on the above.

Regarding the other questions

As soon as the partner is an employee, all labor laws will apply. An LLP has a distinct legal identity, different from its partners. If your partner is working for the business without being an employee (not taking a salary from the firm), then the labor laws may not apply (but things like safety regulations, etc., may still apply).

You need to provide full details if you want a proper answer in a complex case.