trade union act, 1926 according to Indian constitution

1. THE TRADE UNION
ACT, 1926
 MEANING OF TRADE UNION & TRADE UNION ACT
 OBJECTIVES
 DEFINITONS
 REGISTRATION OF TRADE UNIONS
 LIABILITIES OF TRADE UNION
 RIGHTS AND PRIVILEGES OF REGISTERED TRADE U NION
 OFFENCES AND PENALTIES

2.  Meaning of Trade Union and Trade
Union Act
TRADE UNION : It is a voluntary organization of workers relating to a specific trade, industry or a company and
formed to help and protect their interest and welfare by collective action. In simple words, it is an organization of
workers who have bonded together to achieve common goals such as protecting their integrity, higher pay etc.
TRADE UNION ACT : It is an act to provide for the registration of trade unions and in certain respects to define the
law relating to registered trade unions. It is the principle act which controls and regulates the mechanism of trade
unions.

3.  Objectives
A. To secure fair wages for workers and improve their opportunities for promotion
and training.
B. To improve working and living conditions of the workers.
C. To protect the jobs of labor against retrenchment and layoffs.
D. To help them in improving levels of production, productivity, discipline and
high standard of living.
E. To provide legal assistance to workers in connection with disputes regarding
work and payment of wages.
F. To promote individual and collective welfare and thus correlates the workers'
interests with their industry.

4.  Definitions
 APPROPRIATE GOVERNMENT{ Sec 2} : In relation to Trade Unions whose objects
are not confined to one state, the Central Government. In relation to other Trade Unions,
the appropriate government is the state government.
 EXECUTIVE { Sec 2(a)} :Executive means the body of which the management of the
affairs of a trade union is entrusted.
 OFFICE BEARER {Sec 2(b)} :In the case of Trade Union, includes any member of the
executive thereof, but does not include an auditor.
 REGISTERED OFFICE {Sec 2(d)} :Office of a Trade Union which is registered under
this Act as the head office thereof.

5. Definitions Continued
 REGISTERED TRADE UNION {Sec 2(e)} : A Trade Union registered under this act.
 TRADE DISPUTE {Sec2(g)} : Any dispute between the employers and workmen, or
between workmen and workmen, or between employers and employers which is connected
with employment or non - employment, or the terms of employment or the conditions of labor
of any person. Workmen means all persons employed in trade or industry whether or not in
the employment of the employer with whom the trade dispute arises.

6. Definitions Continued
 TRADE UNION {Sec 2(h)} : Any combination whether, temporary or
permanent, formed primarily for the purpose of regulating the relations
between workmen and employers or between workmen and workmen or between
employers and employers for imposing restrictive conditions on the conduct of any
trade or business and includes any federation of two or more trade unions.
Provided that this Act shall not affect -
i. Any agreement between partners as to their own business
ii. Any agreement between employer and those employed by him as to such
employment or
iii. Any agreement in consideration of the sale of the goodwill of a business or of
instruction in any profession trade or handicraft.

7.  Registration of Trade Unions
1) Appointment of
Registrar
{Sec3}
2) Mode of
Registration
{Sec4}
3) Application for
Registration
{Sec5}
4) Provisions to be
contained in the rules
of a T.U
{Sec 6}
5) Power to call for
further particulars
{Sec7}
6) Registration{Sec8}
7) Certificate of
Registration
{Sec9}
8) Cancellation of
Registration {Sec10}

8. 1) Appointment of Registrars {Sec3}
The Act empowers the appropriate government to appoint a person to be Registrar of trade
unions. The appropriate government be it State or Central government, as the case may be is
also empowered to appoint Additional and Deputy Registrars as it thinks fit for the purpose
of exercising and discharging the powers and duties of the Registrar. However, such person
can work under the superintendence and directions of the Registrar. He may exercise such
powers and functions of Registrar with local limits as may be specified for this purpose.

9. 2) Mode of Registration {Sec4}
 Required 7 members or 10% of members or 100 members of Trade Union to apply for
Registration.
 All members must subscribe their names to the rules of Trade Union and also comply
with the provisions of the Act relating to Registration. An application for registration will
not be invalid if some of the applicants, not exceeding half of the total number of
applicants, if more than half apply then they have to be ceased to be a member of Trade
Union at any time after application but before registration.

10. 3) Application for Registration{Sec 5}
Every application for registration of a Trade Union shall be made to the Registrar. It shall be
accompanied by a copy of the rules and other particulars namely -
Names,
Occupations and
Addresses of the
members.
Name of the Trade
Union and the
Address of its
Head Office.
Titles, Names,
Ages, Addresses
and Occupations of
the Office Bearers
of T.U.
Where T.U has
been in existence
for more than 1
year before its
Registration.

11. 4) Provisions to be contained in the Rules of
T.U{Sec 6}
Every registered Trade Union is required to have written rules dealing with certain matters.
{ These matters are specified in Schedule 2 of the Central Trade Union Registration, 1938.}
A Trade Union shall not be entitled to registration unless :
A) The executive of T.U is constituted in accordance with the provisions of this Act, and
B) It must contains the rules for the following matters:
1) Name of the Trade union.
2) The whole object of the Trade union.
3) The whole purposes for which the funds can be used.
4) The appointment of the members of the executive body.

12. Provisions to be contained in the Rules of
T.U Continued
5) The membership of ordinary members who are actually engaged or employed in the
industry with which T.U is connected and of honorary and temporary members.
6) Subscription fees shall not be less than a) Rs 1 for per annum for rural workers, b)Rs 3
per annum for workers in other unorganized sectors, c) Rs 12 per annum for workers in
any other case.
7) The conditions under which a member can get a benefit or has to pay fine.
8) The safe custody of funds and provisions for inspecting or auditing the statements
or other documents of the trade union.
9) Dissolution of the trade union.

13. 5) Power to call for further Particulars and
to Require Alteration of the Name{Sec7}
The Registrar may call for further information for satisfying
himself that the T.U complies with the above provisions. If the
information is not supplied, then registration may be refused and
if he is not satisfied with the information supplied then again it
can be refused.
If the name of the proposed trade union is identical with the name
of any other registered trade union or resembles it, the Registrar
must ask for alteration of the name. The object of this
restriction is to prevent the public or the members of either
union from being deceived. The Registrar shall refuse to register
the union, until the alteration has been made.

14. 6) Registration {Sec8}
 The Registrar will register the Trade Union, if he is satisfied that the trade union has
complied with all the Requirements of this Act in regard to Registration.
 It is mandatory to Registrar to register Trade Union if union satisfy all the technical
requirements.

15. 7) Certificate of Registration{Sec9}
The Registrar on registering a Trade Union shall issue a Certificate of Registration which
shall be Conclusive Evidence that the Trade Union has been duly registered under the Act.

16. Legal Status of a Registered Trade Union
1. A registered trade union is a body corporate with perpetual
succession and a common seal.
2. It can acquire, hold, sell or transfer any movable or
immovable property and can be a party to contracts.
3. A registered trade union can sue and be sued in its own name.
4. No agreement between the members of a Registered T.U
shall be void or voidable merely on the ground that any of its
objects is in restraint of trade.

17. 8) Registered Office{Sec12}
All communications and notices to Registered trade union may be addressed to its registered office.
Notice of any change in the address of the Head Office shall be given within 14 days of such change
to the Registrar in writing and the changed address shall be recorded in the register.
ADVANTAGES OF REGISTRATION :
1) Becomes a body corporate by name under which it is registered, legal entity distinct from its
members of which it is composed.
2) Gets perpetual succession and immovable property.
3) Can acquire and hold both movable and immovable property.
4) Can enter into a contract.
5) Can sue and be sued in its registered name.

18. 9) Cancellation of Registration{Sec10}
Power to withdraw or cancel registration of trade union is given to the Registrar. The
Registrar can exercise the power in the following cases, namely:
1) On the application of the Trade Union.
2) Where the Certificate of registration has been obtained by fraud or mistake.
3) Where the Trade Union has ceased to exist.
4) Where any rule of the union is inconsistent with the provisions of the Act.
5) Where Trade union violates any provision of the Act.
6) Where the primary objects of the union are no longer statutory objects.

19. 10) Appeal{Sec11}
Any person who is aggrieved by the refusal of the Registrar to register a
trade union or by the withdrawal or cancellation of certificate of
registration is given the right of appeal. The appeal must be made
within 60 days of the date on which Registrar passed the order against
which appeal is made.
The appeal shall be made:
Where the head office of the T.U is situated falling within the
jurisdiction of or labor court or an Industrial Tribunal to that court or
Tribunal as the case may be.
The appellate court may dismiss the appeal or pass an order directing the
Registrar to register the union and to issue a certificate of registration.

20.  Liabilities of Trade Union
CHAPTER III of the Trade Union Act, 1926 enumerates the rights and liabilities of a registered trade union. A registered trade union has
the right to maintain (1) A general fund and (2) A separate fund for political purposes. But an obligation is also imposed on the trade
unions to spend the funds only for the purposes specified in the Act.
A) OBJECTS ON WHICH GENERAL FUNDS MAY BE SPENT {Sec15}
The list of purposes of which the general funds of the union may be spent is as follows:
1. Salaries of the office bearers.
2. Expenses required for the administration of the Trade Union.
3. Compensation to workers due to loss arise of any trade disputes.
4. Allowances to members or their nominees on account of death, sickness, old age, accidents or unemployment of such members.
5. Publishing material to create awareness among workers.
6. Legal expenses required for defending or bringing a suit.
7. Taking insurance policies for workers.

21. Liabilities of Trade Union Continued
B) {Sec16} A trade union cannot force members to subscribe to political fund.
C) {Sec20} A trade union must make available all its record of books of accounts and list of
membership for inspection upon request of any member or his representative. It confers the
right of inspection but not the right to take copies of the books or the list.
D) {Sec21} Allows minors more than the age of 15 years to be a member of a trade union.
However, such minors cannot hold office.
E) {Sec21-A} A trade union cannot appoint a person who has convicted a crime involving
moral turpitude and has been imprisoned for 6 months or more within last 5 years.
F) {Sec22} At least half of the office bearers of a trade union must be engaged or employed
in an industry to which the trade union is connected. With it, while union has a right to
remove any office bearer, this power must be used judiciously and rules of natural justice
must be followed.
G) {Sec28} A general statement audited in a prescribed manner of all income and expenses
must be sent to the Registrar every year.

22. Rights and Privileges of a Registered T.U
 {Section 15} A registered Trade Union has a right to estalish a general fund.
 {Section 16} A registered Trade Union has a right to establish a political fund.
Subscription to this fund is not necessary.
 {Section 17, 18 and 19} A registered Trade Union gets immunity in certain criminal,
civil and contractual proceedings.
IMMUNITIES AVAILABLE TO A REGISTERED TRADE UNION{Sec17}
o Immunity from liability in the case of criminal conspiracy under Section 120-B of the
Indian Penal Code, committed by an office bearer or a member. Criminal Conspiracy
is an agreement of 2 or more persons to do an unlawful act or to do a lawful act
by unlawful means.
o However, this immunity is partial in the sense that it is available only with respect to
the legal agreements created by the members for the furtherance of valid objects of
a trade union as described in section 15 of the act.
o The immunity cannot be claimed for an act that is an offence.

23. Rights and Privileges of a Registered T.U
Continued
IMMUNITY FROM CIVIL SUIT IN CERTAIN CASES{Sec18}
Section 18 deals with the immunity from civil proceedings afforded to a Registered T.U and to its
members or office bearers.
NO SUIT or LEGAL PROCEEDING is maintainable in any civil court against R.T.U in respect of
any act done in contemplation or furtherance of a Trade dispute on any of the following
grounds:
a) That such act induces other person to break a contract of employment.
b) That such act interferes with the trade, business, or employment of some other person.
c) That such act interferes with the right of some other person to dispose of his capital or his labor
as he wills.
In order to secure immunity from civil liability, the R.T.U and its members have done the act in
contemplation or furtherance of a trade dispute. The act done in furtherance must be lawful.
There is no immunity against violence, threats, or any other illegal means.

24. Rights and Privileges of a Registered T.U
Continued
ENFORCEEABILITY OF AGREEMENTS {Sec19}
In India, an agreement in restraint of trade is void as per Sec25 of Indian Contract Act.
However, such agreement between trade union members is neither void nor voidable.
This right is available only to R.T.U. An unregistered trade union must follow the
principles of general contract law.

25. Rights and Privileges of a Registered T.U
Continued
CHANGE OF NAME
1) Change of Name{Sec23}
2) Notice of Change of Name{Sec25}
3) Effect of Change in Name{Sec26}
1) Change of Name{Sec23}
Any registered trade union may change its name with the consent of not less than two-
thirds of the total number of its members and subjects to the provisions of Section 25.

26. Rights and Privileges of a Registered T.U
Continued
2) Notice to Registrar{Sec25}
 Written Notice of changing the name signed by the secretary and by 7 members of the Trade Union
is sent to the Registrar.
 If the proposed name is identical with any other existing registered T.U, then to protect the public
from confusion, Registrar may refuse to change the name.
 If the Registrar is satisfied that the provisions of the Act in respect to change the name have been
compiled, then the change of name will have effect from the date of such registration.
3) Effect of Change in Name{Sec26}
The change in the name of a R.T.U shall not effect –
 Any rights or obligations of the Trade Union OR
 Any legal proceedings which might have been continued or commenced by or against Trade Union by
its former name, may be continue or commence by or against it by its new name.
.

27. Rights and Privileges of a Registered T.U
Continued
PROCEDURE FOR AMALGAMATION{Sec24}
Two or more registered trade unions may amalgamate into one trade union with or without
dissolution or division of funds of such T.U. Votes of atleast one half of the members of each trade
union are recorded and at least 60% of the votes of each trade union should be in favor of the
proposal.
Notice to Registrar
The notice of such amalgamation, signed by the secretary and 7 members of each of the T.U, should
be sent to the Registrar where the Head office of the amalgamated trade union is to be located.
Satisfaction of Registrar
If the Registrar is satisfied that all the provisions of this Act have been fulfilled, and the amalgamated
trade union is entitled to register under section 6, he will register the new T.U under Section 8 and the
amalgamation will take effect from the date of Registration.

28. Rights and Privileges of a Registered T.U
Continued
Effects of Amalgamation{Sec26(2)}
An amalgamation of 2 or more R.T.U shall not prejudice any right of any such trade unions or any
right of a creditor or any of them.
DISSOLUTION
When a registered trade union is dissloved, notice for dissloution signed by 7 members and by the
secretary of the T.U is sent to the Registrar within 14 days of the dissolution and if he satisfies that
dissolution has been effected in accordance with the rules of the T.U, then he registers it and
dissolution shall have effect from the date of such regulation.

29. Rights and Privileges of a Registered T.U
Continued
RETURNS{Sec28}
1)Return shall be sent annually to the Registrar, on or before such date as may be prescribed.
It includes –
1. General Statement.
2. Audit Report in the prescribed manner.
3. All receipts and expenditure of every Registered Trade Union.
4. Assets and Liabilities of the Trade Union existing on such 31st day of December.
The statement shall be prepared in such form and shall comprise such particulars as may be
prescribed.
2) A copy of every alteration made in the rules of a R.T.U shall be sent to the Registrar within 15
days of making the alteration.

30.  Offences and Penalties{Sec31-33}
Offences
Failure to submit
Returns
Supplying false
information regarding
T.Unions
Cognizance of
offence
Penalties
Fine upto Rs 50 + additional fine upto
Rs 5 per week in case of continuing
offence. {Max. fine imposable Rs50}
Fine upto Rs 500.
Fine upto Rs 500.