cs executive: trade union

The Trade Union Act, 1926 Compiled by : CA Vidhi Dedhia

Chap 15- THE TRADE UNION ACT, 1926

Trade Union means any combination

Whether Temporary/ Formed primarily Imposing restrictions Federation of Permanent for regulating on the conduct of Trade Union relations between trade/business

Workmen Employers Workmen + + + Workmen Employees Employers

Mode of RegistrationAny 7 + Members of Trade Union subscribe their names Apply for Registration of the Trade Union under this Act To the rules of Trade Union/Complying provision of the Act

Registration and Certificate of RegistrationRegistrar Satisfied Register Trade Union

By entering in register

Issue Certificate

General Fund of Trade Union used for Payment of Salaries- Allowances- Exps of office bearers

Admin of trade Union Prosecution/defense of legal proceeding of Trade union Trade disputes Compensation of members for loss Publication of periodical


Separable Fund used for

Political Purpose Created from “Contribution Received” Promotion of civic & political interest of its members

DISQUALIFICATION OF OFFICE BEARERS OF TRADE UNIONS: If has not attained the age of 18 years Convicted by court of India any offence

Moral turpitude Sentence to imprisonment but if 5 years have elapsed Since release he shall not be DISQUALIFIED

DISSOLUTION OF TRADE UNION

When registered trade union is dissolved Notice of dissolution + sign by 7 member + secretary of Trade union send to registrar within 14 days. Of Such application

DISTRIBUTION OF FUND

Rules are provided accordingly rules are not provided Registrar shall distribute the funds among member AS prescribed by the act.

CASESQ1. During a strike, ten workers locked-up the factory manager in his office for five days without food or water. He died due to shock and starvation. Would the workers or their trade union be liable for manager’s death? Give reason.

In a leading case R.S Ruiker. Emperor the Court had held that there is nothing in the Trade Union Act, 1926, which apart from the immunity granted from criminal conspiracy inter se members of the Union, allows immunity from any other criminal offences.

In National Labour Relations Board v. Fansteel Metallurgical Corporation (1939) 306 US 240, it was held that striking workers were not entitled to any immunity.

They had the right to strike but no licence to commit acts of violence. Hence, in the subject case the concerned 10 workers shall be held guilty of wrongfully confining

and murdering the factory manager.


However, if their Trade Union did not abet the offence or disapproved the act of violence, the union shall not be liable, but if it abetted offence, it would be guilty for criminal conspiracy to commit the said offences.

Q2. 75 Workers of several factories, 10 labour court advocates, 10 social workers and 3 lady members of legislative assembly formed a combination (union) to protect the interests of factory workers in XYZ industrial zone. On their application, the Registrar registered this combination (union) under the Trade Union Act, 1926. Will this combination (union) enjoy all the privileges of a registered trade union? Why? Ordinarily, the members of a trade union must be persons who are actually engaged in trade or

industry with which the union is concerned. However, in terms of Section 5(h) of Trade Unions Act, 1926, a trade union maybe any combination,

formed for regulating relations between:a. workmen and workmen; orb. employers and employers; or c. employers and workmen.

Section 21 specifically provides that any person who has attained the age of 15 years may be the member of a registered trade union.

Thus, the test of trade union: Is its objects and the purpose (Sections 15 and 16) for which it is formed and not the persons who

constitute the union. There is nothing in the Act which debars a trade union from admitting outsiders as its

members. The registrar has to satisfy that all the requirement have been complied with, in regard to

grant of registeration. Any 7 or more members of a trade union, subscribing their names to the rules of the union

should have made the application for registeration. The rules should be framed as per the requirement of section 6 which provides for rules for

admission of ordinary members who are actually engaged or employed in the industry with which the trade union is connected & also admission of honorary/ temporary members as office bearers to form the executive body as prescribed in section 22.

If all terms are complied with, it is obligatory for the registrar to register the union & issue the certificate.

Q3. Avinash, a member of a registered trade union was convicted and sentenced to imprisonment for a period of 2 years for breach of trust in 1995. On his release, avinash intends to contest election of office bearer of the trade union in 1999. Advise.

Provision: DISQUALIFICATION OF OFFICE BEARERS OF TRADE UNIONS:


If has not attained the age of 18 years Convicted by court of India any offence

Moral turpitude Sentence to imprisonment but if 5 years have elapsed Since release he shall not be DISQUALIFIED

In this case, as 5 years has not been elapsed since release, hence avinash is disqualified for being choosen as an office bearers & he will not be able to contest election.

Q.4 D was a member of a registered trade union of workers of a department store. He resigned from the membership of the union. Following this, the union pressurized the employer to dismiss D or otherwise the union will ask its members to stop work. Under the threat, D was issued a notice of termination of service. D brought action for damages against the union & its office bearers. Can the workers union and its office bearers claim immunity from the suit? No – Union officials are guilty of unlawful intimidation because they threadened to induce a

breach of contract resulting in the interference with the employment of D. There is nothing to differentiate a threat of breach of contract from a threat of physical

violence or any other illegal threat. The nature of threat is not material in an action for intimidation.

cs executive: trade union

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