Labor Cooperatives Law is approved

23 November, 2021
Labor Cooperatives Law is approved.

This November 19, 2007, Law No. 6841 was published in Official Gazette No. 232, promoting and regulating the organization, incorporation, and operation of worker cooperatives.

1. Associated labor cooperative

They are specialized or multi-active and enable their members to carry out their activities and obtain personal and family economic sustenance, based on their own efforts and mutual aid, characteristic of Cooperatives.

The members, as co-owners of the Cooperative, have a corporate-cooperative relationship and not a labor dependency relationship regarding thereof, and the fulfillment of its purpose, since their relationship is not subject to labor legislation.

2. Requirements to become a member and minium number of members

The person interested in becoming a member of the Associated Worker Cooperative must have a trade, technique, or profession, or the predisposition to learn those necessary for the activities undertaken or proposed by the Cooperative, under its Social Statute.

The number of members of the Associated Work Cooperative is unlimited as to the maximum, and it may be constituted with a minimum of six members.

3. Regime of activities

The Assembly of the Worker Cooperative shall regulate the activities of its members, determining the levels of authority, responsibility, compensation, and other organizational rules, according to the structure and the social purpose to be developed, and according to the nature of the products and services offered by the entity.

4. Product of cooperative activities

The product obtained from the activity of the members, under the cooperative regime and in compliance with the corporate purpose, whether of an intellectual, artistic, manual, or other nature, does not belong to them but to the Cooperative and/or its clients, who, consequently and as appropriate, have the power to freely dispose of it.

5. Registration with the ministry of labor, employment, and social security

Once the legal status of the worker cooperative has been granted, the National Institute of Cooperativism (INCOOP) must send to the Ministry of Industry and Commerce (MIC), the Ministry of Labor, Employment and Social Security (MTESS), and the Social Security Institute (IPS) for their knowledge, the resolution documents for which the legal status of the cooperative is recognized and others indicated in the regulation.

Source: Gaceta Oficial 22/11/21