The registration of the code of conduct for the National Employment Council for the Cotton Industry and the inherent legal implications to the industry at large
On the 4th of July 2022, the National Employment Council for the Cotton Industry (NEC Cotton) successfully registered its employment code of conduct with the Registrar of the Ministry of Public Service, Labour and Social Welfare using the enabling provisions of section 101 of the Labour Act. For convenience, the critical provisions of Section 101 of the Labour Act, hereinafter referred to as the Act, are as follows: –
101. An employment council or, subject to subsections (1a), (1b) and (1c), a works council may apply in the manner prescribed and on payment of a prescribed fee to the Registrar to register an employment code of conduct that shall be binding in respect of the industry, undertaking or workplace to which it relates.
1a) Where an employment council has registered a code governing employers and employees represented by it, no works council may apply for the registration of a code in respect of any industry, undertaking or workplace represented by the employment council unless it first refers the code to the employment council for its approval.
(1b) Where a code is registered by a works council in respect of any industry, undertaking or workplace represented by an employment council and the employment council subsequently registers its own code, the code registered by the employment council shall supersede that of the works council, unless the works council refers it to the employment council for approval
After the registration of the NEC Cotton Code of Conduct on the 4th of July 2022, all existing individual company codes of conduct (Works Council Codes for the companies in the Cotton Industry) became obsolete and ineffective by law. The NEC Cotton Code effectively supplanted all Works Council codes of conduct that were in existence. The NEC Cotton Industry Code of Conduct holds legal precedence over all the works council codes within the sector.
It is a legal requirement for a company’s works council code to be referred to NEC Cotton and receive approval before it can be used. If the code is not approved, all workplace grievance and disciplinary processes must strictly adhere to the provisions of the NEC Cotton Code of Conduct. The use of an unapproved Works Council Code of Conduct will be considered legally invalid.
Therefore, all corporations or institutions in the cotton industry are advised to accordingly regularise their Works Council codes of conduct with the NEC Cotton before using them, or else, use the NEC Code. Failure to do so could result in legally defective proceedings. Employers must always ensure they use a correct and registered code of conduct, as using an incorrect and unapproved one can invalidate the entire process.