THE TRADE UNIONS ACT,

1926

- SURAJ SHARMA

Before 19th century, trade union activities & trade unions were considered unlawful.

In 1920, the leaders of trade unions were prosecuted & imprisoned for their bonafide trade union activities in Madras, binny &Co filed a suit against Madras Textile labour union for refusing employees to return for work after award.

To protect bonafide trade union activities The Indian Trade Union Act, 1926 was enacted & came in force from 1st June, 1927.

There were many amendments in 1929,1942,1951,1960,1970,1974, &2001. In 1974 the word “Indian” was removed & thus The Trade Unions Act, 1926 was declared.

Unregistered trade unions are not governed by this Act.

The Act extends to the whole India except the state of Jammu & Kashmir.

IMPORTANT FEATURES

i. Provides registration of trade unions with the registrar of trade unions. It empower the registrar to call for any requirement for alteration or cancel the registration.

ii. Every trade union is body corporate & have common seal & perpetual succession.

iii. It lays down.

a. the rights & liabilities of registered trade union.

b. objects on which general funds to be spent

c. Constitution of separate funds for political purposes.

iv. Provides immunity from civil suits to registered trade unions, Its leaders or members.

v. Certain Acts do not apply to registered trade unions.

a. The Societies Registration Act, 1860

b. The Co operative Societies Act, 1912

c. The Companies Act, 1956.

DEFINITIONSi. Appropriate Govt. : means in relation to trade union

if objects not confined to one state then The Central Govt. or State Govt.

ii. Executive : Sec. 2(a)- A body of members to affairs of trade unions entrusted.

iii. Office Bearers: Sec. 2(c): members of Executives & not Auditor.

iv. Registered Office: Sec. 2(d): office of trade union registered under this Act.

v. Registered Trade Union: trade union registered under this Act with the Registrar.

vi. Registrar: sec.2(f): registrar meansi. a Registrar of trade unions appointed by the

Appropriate Govt. u/s(3). Includes Additional or Deputy Registrar of trade union.

ii. In relation to any trade union, the registrar appointed for the state in which the Head office or registered office of trade union is situated.

vii. Trade Dispute[ sec.2(g)]:

Trade Dispute means any dispute between

employers and workmen or between workmen &

workmen or between employers & employers which

is connected with employment or non employment or

terms of employment or the condition of labour of

any person.

A demand by one party & not accepted by other

party. Then dispute

Individual Dispute can not be a Trade Dispute

unless the cause is sponsored by Trade union or

by substantial no. of workmen.

viii. Workmen:[sec.2(9)]: Workmen means all persons employed in Trade or Industry whether or not in the employment of employer with whom the Trade Dispute arises. The definition includes a dismissed, discharged retrenched or removed employees also.

E.g. Domestic workers & gardeners serving at Rajbhavan of Madras wanted to register their

Trade Union. The registrar refuses, why? They are not in trade/business. Employees are not workmen. Their services are purely of personal nature. Govt. Servants can not form trade Union

Cont.

ix. Trade Union: means any combination,

whether

1. Temporary or permanent formed.

2. Primarily for the purpose of regulating relations

between workmen & employers or

3. For imposing restrictive conditions on conduct of

any trade or business and includes federation of

two or more Trade Unions, provided that the Act

shall not affect.

I. Any agreement done between partners of their own

business(partnership firms)

II. Any agreement between employer & those employed by

him, as to such employment

III. Any agreement in consideration of sale of goodwill of a

business.

Cont.

REGISTRATION OF TRADE UNIONS

Appointment Of Registrars (sec-3): Appropriate

Govt. appoint the Registrar for each state. He may

appoint Additional/Deputy Registrar. He can

discharge power on behalf of Registrar.

Mode of Registration (sec-4): Any seven or more

members of Trade Union by subscribing their

names & complying with provisions of this Act can

apply for registration. But before registration if

some applicants apply to the registrar to withdraw

their names as applicants( Not more than 50% of

applicants). Still it will not make any effect on

process of Registration.

Application for Registration:

Application should be accompanied with

i. Copy of rules of trade union

ii. Names, occupation, address of members

iii. Names & address of trade union office

iv. Name &address of office bearers

v. If trade union is existing since 1year then assets

&liabilities of trade union.

PROVISIONS TOBE CONTAINED IN

RULES OF A TRADE UNION

1. Name of trade union

2. Objects of trade union

3. The whole purposes for which general funds of

trade union are lawfully applicable

4. Maintenance of list of members of trade union &

adequate provisions for conducting inspection by

office bearers.

5. Admission of ordinary members in trade

union.(Hon or Temp)

6. payment of subscription by members must less

than Rs.1/-P.A. in rural area, Rs 3/- P.A. in other

unorganized sector, Rs 12/- P.A. in other case.

Cont.

7. Conditions for making members entitled for

benefits under rules. Under which fines or

forfeiture may be imposed.

8. Manners in which the said rules may be

amended or varied

9. Manners of appointment of executives and

office bearers of trade union and their

removal.

10. Safe custody of funds, annual audit,

inspection of account books by office

bearers & members.

11. Manners in which trade union may be

dissolved

Power to call for further particulars & to require alteration of name:

1. The registrar may call for further information for satisfying himself.

2. Power to require alteraion of name if resembling with any previous/existing trade union or refuse the trade union.

Registration (Sec-8): the registrar being satisfied(with all particulars) shall register the T.U. by entering in register.

Certificate of registration (sec-9): the registrar shall issue certificate of registration in the prescribed form.

Cancellation of registration (sec-10):

1. A certificate may be withdrawn or cancelled if not satisfied

2. If certificate has been obtained by fraud or mistake.

Not less than two months previous notice specifying ground on which withdrawal or cancellation shall be done by the register.

Appeal (sec-11): any person aggrieved by refusal or

cancellation by the registrar can make appeal in

prescribed period.

i. In High Court if H.O. of trade union is in

presidency town

ii. In Additional/ Asstt. Judge of civil court in other

area.

The appellate court may dismiss the appeal or

pass an order to the Registrar to issue a certificate

of registration. Or set aside the order of withdrawal

or cancellation.

Registered office (sec-12): All communications

should be addressed to its registered office.

Notice of change of address of H.O. shall be given

within 14 days of such change.

RIGHTS AND LIABILITIES OF RGD. TRADE

UNIONS (SEC-15)Objects on which general funds to be spent.

a) Salaries, allowances &expenses to office bearers of trade union.

b) Admin expenses including Audit.

c) The prosecution or defence of legal proceeding to which the trade union or any member thereof is a party.(protection of rights of trade union or its members.)

d) the conduct of trade dispute on behalf of T.U. or its members.

e) The compensation of members for loss arising out of trade dispute.

f) Allowances to members or dependants on account of death, old age, sickness, accidents or unemployment of such members.

Cont.

g) The issue of, or the undertaking of liabilities under

policy of assurance (insurance) against sickness,

accident or unemployment.

h) The provision of education, social or religious

benefits for members (funeral or religious

ceremony of deceased member)

i) Periodical publications in relation to issues related

to employers &employees.

j) The payment, in furtherance of any of the object

on which general funds to be spent.

k) Subject to any condition contained in the

notification, any other object notified by

Appropriate govt. in official Gazette.

Constitution of separate fund for political

purpose (sec-16):

Expenses for candidate for election of legislative body or

of any local body or of any local authority.

Holding of meetings or distribution of any literature or

document in support of candidate.

The maintenance of any person of any legislative body.

Registration of electors or the selections of a candidate

for legislative body.

Criminal conspiracy in trade disputes (sec-17):

No office bearer or member of registered trade union shall

be liable to punishment for criminal conspiracy to trade

dispute. They can go for strike (under IPC Code).

Immunity From Civil Suit (Sec-18):

1. No suit or other legal proceeding shall be maintainable in

civil court against any registered trade union or office

bearers or members if its in relation to trade dispute.

2. Immunity from tortious liabilities: A registered trade union

shall not be liable in any suit or other legal proceeding in

any civil court in respect of tortious act done in

contemplation or furtherance of trade dispute. if it is

proved that such person has acted without knowledge of

it. e.g. employee proceed for strike as employer did not

pay bonus as a result of award. Employer claimed Rs 8

lakhs to employees for loss due to strike.

Enforceability of agreement (sec-19):

Agreement made bet members of registered trade union

& employer shall not be void or voidable merely by reason

of fact that any object of agreement are in restraint of

trade. Civil court can not recover damages for breach of

agreement for enforcement.

Right to inspect books of trade union (sec-20):

Books of account & list of members are to be kept open for

inspection by the officer bearers or any members.

Rights of minors to membership (sec-21):

Any person who has attained age of 15 yrs may be member

of registered trade union. He cannot become office bearer

of it.

Disqualifications of office bearers of trade

unions(sec-21A):

A person shall be disqualified to become member of

executive/office bearer if

i. He has not attained age of 18 yrs.

ii. He has been convicted by court in India of any offence

involving moral turpitude & sentenced to imprisonment

unless 5 yrs has elapsed since his release (before or

after membership)

Proportion of office bearers to be connected

with the industry (sec-22):

Not less than one half of total number of the (office

bearers) of every registered trade union shall be

persons actually engaged or employed in industry with

which trade union connected.

Note: employee or office bearer connected with trade

union

& employed in Industry only can negotiate with

Management.

Change of name (sec-23):

Any registered T.U. may with the consent of not less

than 2/3 of total members & subject to the provisions

of sec-25 change its name.

Amalgamation of trade unions (sec-24):

Any two or more registered trade unions may become amalgamated together as one trade union with or without dissolution or division of the funds of such trade unions or either or any one of them, provided that the votes of at least one half of the members of each or every such trade union entitled to vote are recorded and that at least 60%of the recorded votes are in favour of the proposal.

Notice of change of name or amalgamation (sec-25):

Notice of change of name in writing &signed by the secretary &other7 members of T.U. to be sent to the registrar.

In case of amalgamation, notice to be signed by the secretaries of each T.U.& 7members from each T.U.

Consent to be received from all members in general meeting of T.U.

If the proposed name is identical with any existing T.U. or likely to resemble &likely to deceive the public or members of T.U. the registrar may refuse to register such change.

Effect of change of name and of amalgamation

(sec-26):

i. The change of name shall not affect any rights or

obligations of the trade union.

ii. An amalgamation of any two or more registred trade

unions shall not prejudice any right of any such

unions or any right of creditors.

Dissolution (sec-27):

i. When a registered T.U. is dissolved, notice of

dissolution signed by 7 members & by the secretary

of T.U. shall within 14 days of dissolution to be sent

to registrar, the registrar will register it.

ii. Where the dissolution of registered T.U. has been

registered then distribution of funds will not take

place, the registrar shall divide the funds among the

members in prescribed manner.

RETURNS (Sec-28):

1) General statement- Audited Annual statement-

Assets & liabilities Registers to be submitted by

31st Dec of every year.

2) Statements of changes:

-Of office bearers-copy of rule

3) Copy of alteration of rules to be sent within 15

days of changes.

THANKYOU