Key concept

Lecture in:Union Act, 1926

8: Trade
Trade Union- Meaning

As per Sec. 2 (h) Trade Unions Act, 1926-

“Trade Union” means 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, or for
imposing restrictive conditions on the
conduct of any trade or business, and
includes any federation of two or more
Trade Unions.”
SCOPE OF THE ACT

This Act provides for the registration of trade

unions and in certain respects in define the
law relating to registered Trade Unions.

The act applies to registered Trade Unions.

The Act extends to the whole of India and

applies to all kinds of unions of workers and
associations of employers, which aim at
regularising labour management relations.
 REGISTRATION OF TRADE UNION

Appointment of registrars -Appointed by

“appropriate Government” - appropriate
Government can also appoint as many additional and
Deputy Registrars of trade unions.

The appropriate Government can be State or Union

govt.

Registration of a trade union is not compulsory but is

desirable since a registered trade union enjoys
certain rights and privileges under the Act.
Mode of Registration

Any seven or more than seven members of a trade union may by application
apply for the registration of the trade union subject to the following two
conditions:

At Least 7 members should be employed in the establishment on the date of the

making of the application.

At Least 10% or a hundred members whichever is less, are employed in the

establishment should be a part of it on the date of making the application.

If the union has been in existence for more than a year, then a statement of its
assets and liabilities in the prescribed form should be submitted along with the
application.
Rules of a Trade Union

• The Act enlists the provisions which should

be contained in the rules of trade union
and it provides that no trade union shall be
recognized unless it has established an
executive committee in accordance with
the provisions of the Act and specified
rules.
Registrar’s power to call for
information
• The registrar has the power to call for
information in order to satisfy himself that
any application made by the trade union is
proper.
• Right to reject the application unless such
information is provided by the union.

Registration

• If the registrar has fully satisfied himself that

a union has complied with all the necessary
provisions of the Act, he may register such
union.
Membership of a Trade Union
The minimum number of members - Must at all times should continue to
have not less than 10% or one hundred of the workmen, whichever is less,
subject to a minimum of seven, engaged or utilized in an institution or trade
with that it’s connected, as its members.

• The minimum age limit

• Membership - 15 years
• Office bearer the person has to be above 18 years of age
Legal Status of a Registered Trade Union

Every trade union which is registered according

to the provisions of the Act, shall:
• Body corporate by the name under which it is
registered.
• Perpetual succession and a common seal.
• Power to contract and hold and acquire any
movable and immovable property.
• By the said name can sue and be sued.
Immunities available to a registered Trade
Union
Immunity from civil suits in certain
cases
• No member of a trade union can be held liable for
criminal conspiracy regarding any agreement made
between the members of the union in order to promote
lawful interests of the trade union.

Immunity from civil suits in certain

cases
• The members of trade union from civil or tortious
liabilities arising out of any act done in furtherance or
contemplation of any trade disputes.
Appointment of Office Bearers

At least half of the office bearers of a trade union of

workers of unorganized sector must be engaged or
employed in an industry to which the trade union is
connected.
Otherwise-
More than one-third of the total number of the office-
bearers or five, whichever is less,

• 1/3rd or less members can be outsiders such as

Lawyers, politicians, social workers etc.
Qualifications of Office-Bearers

To be appointed as an office bearer

or executive of a registered trade
union, a person must have-

• Attained the age of 18 years; and

• not been convicted of any moral turpitude
and sentenced to imprisonment, or a
period of at least 5 years has elapsed
since his release.
Amalgamation of Trade Unions

Any registered trade union may amalgamate

with any other union(s), provided that-
• at least 50% of the members of each such union
record their votes and
• at least 60% of the votes so recorded are in favour of
amalgamation.
• A notice of amalgamation signed by the secretary and
at least 7 members of each amalgamating union,
should be sent to the registrar
Obligations of Registered Trade Unions

General funds
• The general funds of a registered trade union should be
spent only for the activities specified such as Salaries to
office-bearers; administration expenses and other
welfare expenses for the member etc.

Separate Political fund

• The trade union may set up a separate political fund for
furtherance of civic and political interest of members.
Contribution to this fund is not compulsory.
Account books and membership register

The account books and membership register of the union should be kept
open for inspection by any of its office‐bearers.

A copy of every alteration made in the rules of the union should be sent to
the Registrar within 15 days of making the alteration.

An annual statement of receipts and expenditure and assets and

liabilities of the union for the year ending on the 31st December,
prepared in the prescribed forms and duly audited should be sent to the
Registrar within the prescribed time.
Next Lecture 8-
Industrial conflict
and Dispute in
India
Question 1
Which of the following is not the right of
Registered Unions?
A. Right to employ anyone without consulting the
management
B. Right to collect membership fees with in the
premises of the organisation
C. Right to raise issues with the management
D. Right to discuss members grievances with
employer
Question 2

For registering a trade union under the Trade Union Act, 1926, which of the
following is the minimum number of workers required to be employed in the
establishment with which it is connected?

A. 5 % or 50 of the workers, whichever is less subject to a minimum of 4

B. 10 % or 100 of the workers, whichever is less subject to a minimum of 7

C. 15 % or 150 of the workers, whichever is less subject to a minimum of 12

D. 20% or 200 of the workers, whichever is less subject to a minimum of 15

Question 3
Creation of a political fund by trade unions under
the Trade Union Act is-

(A) Compulsory
(B) Optional
(C) by donation from political parties
(D) No such provision in the Act
Question 4
What should be the minimum number of
person’s required to register a trade union?

A. Six
B. Seven
C. Eight
D. Nine
Question 5

The registered trade union can collect political

fund from its members as a-
A. General fund

B. Cannot collect political fund

C. Separate fund from the interested members

D. Only from political parties

Question 6
Which of the following is not considered to be a
legal status for a registered union?
A. No power to acquire and hold both movable
and immovable property
B. Power to contract with other entities
C. Perpetual succession and common seal
D. A body corporate by the name under which it is
registered
Question 7 (APFC 2017)
According to Trade Union Act, 1926, for which one of the
following purposes, the general funds of a registered trade union
may NOT be spent?
A. The conduct of trade disputes on behalf of the trade union or
any of its members
B. The compensation of members for loss arising out of trade
disputes
C. The maintenance of any person who is a member of any
legislative body constituted under the Constitution or any local
authority
D. Allowances to members or their dependents on account of
death, old age, sickness or unemployment