Trade Union Act,1926

Contents
• Introduction
• Definition
• Objective of trade unions
• Registration and Re-registration of Trade Union
 Important definitions
• Appropriate Government
• Executive
• Registered Office
• Registered Trade Union
• Trade Dispute
• Trade Union
• Workmen
• In this Act 'the appropriate Government'
means, in relation to Trade Unions whose
objects are not confined to one State, the
Central Government, and in relation to other
Trade Unions, the State Government, and,
unless there is anything repugnant in the
subject or context, -
• executive" means the body, by whatever
name called, to which the management of the
affairs of a Trade Union is entrusted;
• (b) "office-bearer", in the case of a Trade
Union, includes any member of the executive
thereof, but does not include an auditor;
 Introduction
• Trade Union Act,1926 associated with
registration & Protection of Trade Unions.
• Act applicable to Whole of India except
Jammu & Kashmir.
• Trade Union means an association of workers
in 1 or more occupations for protection &
promotion of the interest of working class
including workers/labours.
 Objectives
• 1) To protect workers against exploitation by
employers.
• 2) To represent the grievance of employees on
behalf of them to the management.
• 3) To protect & safeguard rights of workers
provided to them under employment clause or
labour laws.
• 4) To increase participation in management
for Decision Making..
 INTRODUCTION
The Trade Union Act,1926 was brought into operation
from 1st June,1927 by notification in the official gazette
by the Central Government.

The Act was amended in 1947, 1960 and 1962.

The Trade Unions in India are governed by the Trade

union Act,1926.

This Act was enacted to accord protection to the Union

Leaders for the acts done by them in connection with the
legal trade union activities.
 INTRODUCTION
The Act was enacted with the object of
providing for the registration of trade unions
and verification of the membership of trade
unions registered so that they may acquire a
legal and corporate status.
 INTRODUCTION
As soon as a trade union is registered, it is treated as an
artificial person in the eyes of law, capable of enjoying
the rights and discharging liabilities like a natural person
 INTRODUCTION
The Act extends to the whole of India.

The Act applies not only to the Union of the

Workers but also to the association of employers.

Certain Acts do not apply to the registered Trade

Unions.

1. The Societies Registration Act,1980

2. The Cooperative Societies Act,1912
3. The Companies Act,1956
4. The Registration of any such union under any
such Act is null and void.
 Functions of Trade Union
Primary functions of a trade union are to protect and
promote the interest of the workers and the conditions
of their employment. In India, trade unions generally
undertake the following functions:

1. To achieve higher wages and better working and living

conditions for the members.
2. to generate self confidence among the workers.
3. To encourage sincerity and discipline among workers.
4. To take up welfare measure for improving the morale
of the workers
13
 No. of Association and Federations
Besides the affiliated unions and their federations, there are a
large number of associations and federations which have not
joined any one of the Central Workers’ Organizations. Some of
are as under:
1. All India Bank Employees’ Association
2. All India Bank Employees’ Federation
3. All India Insurance Employees’ Association
4. All India Defense Employees’ Federation
5. All India Railwaymen’s Federation
6. National Federation of Indian Railwaymen
7. National Federation of Posts and Telegraphs Employees
8. All India Private Employees Federation
9. All India Electricity Employees Federation
10. All India Port and Dock Workers Federation
11. All India Defence Workers Federation
12. All India Chemical and Pharmaceutical Employees
Federation
Reasons For Joining Trade Unions

1. Greater Bargaining Power

2. Minimize Discrimination
3. Sense of Security
4. Sense of Participation
5. Platform for self expression
7. Betterment of relationships
 Power to call
Provisions to for further
Application be contained particulars
Appointment Mode of Certificate of
for in the rules and to Registration
of Registrars. registration registration
registration of a Trade require
Union alterations of
names

16
1) Appointment of registrars(Sec. 3)
-Appointed by “appropriate Government”
- appropriate Government can also appoint as many
additional and Deputy Registrars of trade unions.
-But limits will be defined by Registrar

2) Mode of registration(Sec. 4)
-Any 7 or more members of Trade Union can subscribe to
the charter of TU by application and complying with the
provisions of this Act.

17
3) Application for Registration(Sec. 5)
-Application for registration of TU shall be made to
Registrar in comply with Rules and statement of
following particulars:

Names, Occupations Name of the Trade

& Address of the Union & Address of
members its head office

Titles, Names, Ages, Where isExistence of

Addresses & TU from past 1 Year
Occupations of office before making this
Bearers of TU application 18
4) Provisions to be contained in the Rules of Trade
Unions(Sec. 6)
list of members of Whole of the objects for
TU and their which the TU has been
Name of TU
- inspection established.

admission of ordinary
Whole of the purpose for members(employee) to
Payment of whome TU is connected &
which the general funds Manner for every
subscription 25
of the TU shall be appointment and removal of the number of temporary
paise/month/memb members as office-
applicable. office-Bearer/
er
Dissolve of TU beares(forms the executive
of TU)

Conditions under- Manner of

benefit entitled to Annual Audit of
members the account
books 19
5) Registration(Sec. 8)
Registrar, on being satisfied that the TU has complied
with all the requirements of this Act in regard to
registration, shall register the TU within a period of
60 days from the date of such compliance.
6) Certificate of registration
in the prescribed form which shall be conclusive
evidence that the Trade Union has been duly
registered under this Act.

20
 Legal status of a registered trade
union
1. It becomes a body corporate by the name under which
it is registered and becomes a legal entity distinct from
the members of which it is incorporated.
2. It has a perpetual succession and a common seal.
3. It has the power to acquire and hold both movable and
immovable properties.
4. It has power to enter into contract.
5. It can sue and be sued by the name under which it is
registered.
 Registered office
• All communications and notices to a
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 fourteen days of such change to the
Registrar in writing, and the changed address
shall be recorded in the register referred to in
section 8.
The Registration of a Union can be cancelled or a
certificate of registration withdrawn by the
Registrar …

1. When the application is not made by the trade

union,
2. If the Registrar is satisfied that the Certificate
was obtained by fraud or mistake or
3. When the trade union has ceased to exist or
4. If the Registrar is satisfied that the TU has
called for or participated in any illegal strike
23
Any person aggrieved by any refusal for the
Registrar to register a TU or by the withdrawal or
cancellation of registration, may prefer
Appeal within 60 days of the date on which the registrar
passed the order.

The appeal is to be filed in High Court.

The Appellate Court may..
- Dismiss the appeal or
- pass an order for registration and
issue a Certificate of Registration or
- Set aside the order for withdrawal
or cancellation of the certificate. 24
A TU whose Certificate of Registration has been
cancelled may apply for re-registration to the
Registrar after the expiry of a period of 6 months
from the date of such cancellation.

25
• AII communications and notices to a
registered TU 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 referred to in sec. 8,

26
A TU on registration enjoys the advantages….

Every registered TU becomes a BODY CORPORATE

by the name under which registered.

Has perpetual succession and a common seal with

power to acquire and hold both movable and
immovable property

Has a power to contract and

It can sue and be sued.

27
Change of name:-
Every regd. TU can change its name by a resolution
passed by two – thirds of members by the union in
a General Meeting under intimation to the Registrar
of Trade Union.
Amalgamation of Trade Unions:-
Any two or more regd. Trade Unions may be
amalgamated as one TU with or without dissolution
such Trade Unions,
Provided that the votes of at least one half of the
members of each of every such trade union are
recorded and that at least 60% of the votes recorded
are in favour of the proposal of amalgamation.
28
Amalgamation of Trade Unions:-
A notice in writing for amalgamation, signed by the
Secretary and by 7 members of each and every trade
union should be sent to the Registrar of the State in
which any of the amalgamated unions has a registered
office.

If the Registrar is satisfied, he will register the trade

union and amalgamation will have effect from the date
of such registration (section 25)

Any amalgamation of two or more registered TU shall

not prejudice any right of such trade unions. (Section 2926)
• Notice of the dissolution signed by 7 members
and by the Secretary of the TU shall, within 14
days of the dissolution be sent to the Registrar,

• in accordance with the rules of the TU, and the

dissolution shall have effect from the date of
such registration.

• the Registrar shall divide the funds amongst

the members as per the rules or as may be
prescribed.
30
 Re-registration of a Trade Union

A trade union whose certificate of registration has been

cancelled may apply for re-registration to the Registrar
after the expiry of a period of 6 months from the date of
such cancellation.
 Registered Office and change in it
(Section 12)
All communications and notices to a 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 maintained in the office of the
Registrar.
 Incorporation of Regd. T U (Section 13)
- Every registered TU becomes a legal entity or body
corporate by the name under which it is registered.

- Every registered TU has perpetual succession and

common seal with power to acquire and hold both
movable and immovable property.

- Registered TU has a power to contract and it can sue

and be sued.
 Duties and Liabilities of regd. TU (S.15)
The general fund of a regd. TU shall be spend on any of
the following purposes:

1. The payment of salaries, allowances and expenses

to the Office-bearers of the TU.
2. The payment of expenses for the administration of
the trade union, including audit of the accounts of
the general fund of the TU.
3. The prosecution or defence of any legal proceeding
to which the trade union or any member is a party.
4. The conduct of trade disputes on behalf of the
trade union or any member thereof.
 Duties and Liabilities of regd. TU (S.15)
5. The compensation to members for the loss arising out
of trade disputes.

6. Allowances to members or their dependents on

account of death, old age, sickness, accidents.

7. Policies insuring members against sickness, accident

or unemployment.

8. The provision of educational, social or religious

benefits for members (including payment of the
expenses on funeral, religious ceremony)
 Duties and Liabilities of regd. TU (S.15)
5. The compensation to members for the loss arising out
of trade disputes.

6. Allowances to members or their dependents on

account of death, old age, sickness, accidents.

7. Policies insuring members against sickness, accident

or unemployment.

8. The provision of educational, social or religious

benefits for members (including payment of the
expenses on funeral, religious ceremony)
 Duties and Liabilities of regd. TU (S.15)
9. Maintenance of a political fund under section 16 for
the purposes like ….
- the payment of any expenses by a candidate for
election as a member of any legislative body
constituted under the Constitution or any local
authority before, during or after the election in
connection with his candidature or election.

- the holding of any meeting or distribution of any

literature in support of such candidate

- holding of political meetings of any kind.

 Penalties and Procedure
Under Section 31 to 33, the Registrar of Trade Unions is
empowered to impose penalty on the trade union for default
in submitting returns or for supply of false information and
statement.

Every office bearer or other member of the Executive

Committee is bound to give such information or documents
as required under the provisions of the Act and if this is not
done, they are punishable with fine which may extend to
Rs.25/-.

In the case of a continuing default, an additional fine

exceeding Rs.25/- may be imposed for each week after the
first week during which the default continues.
 Penalties and Procedure
The following information are required to be submitted
by the regd. TU.
1. Notice of change in the address of the head office of
the trade union.
2. Notice of change of name on amalgamation of the
unions.
3. Notice of change in the officers of the trade union.
4. Copies of the corrected rules and
5. Copy of every alteration made in the rules.
6. Notice of dissolution of the trade union and
7. Annual returns for the period ending 31st March.
 Penalties and Procedure
Supplying false information about Trade Unions (Sec 32)

The Act lays down that where any person, with intent to
mislead, gives to any member of a regd. TU or to any
person applying to become a member of such TU or any
alterations of the rule, which he knows that it is not a
correct copy of rules of alteration, shall be punishable
with fine which may extend to Rs.200/-
Disqualification as an office bearer
• He has not attained 18 years
• Has been convicted in a court in india
• 5 year should have elapsed after his release
A person shall be disqualified for being chosen as, and
for being, a member of the executive or any other
office-bearer of a registered Trade Union if -
• He has not attained the age of eighteen years.
• Any member of the executive or other office-bearer
of a registered Trade Union who has been convicted
of any offence involving moral turpitude and
sentenced to imprisonment, shall on the date of such
commencement cease to be such member or office-
bearer unless a period of five years has elapsed since
his release before that date.
 Code of Conduct

• The four central labor organizations INTUC,

AITUC, HMS,UTUC voluntarily adopted an
inter union code of conduct on may 21 1958,
to observe the following basic principles for
the maintenance of harmonious inter union
relations.