The Trade Unions Act, 1926

The act was passed to regulate

Conditions governing the registration of trade
unions;
Obligations imposed upon a registered trade union;
and
Rights and liabilities of registered trade unions.

The Act applies to registered trade unions.

It also specifies the mode of their registration.

Definitions

Appropriate Government (Sec.2)- in relation to trade
unions whose objects are not confined to one State,
the appropriate Government means the central
government. In relation to other trade unions, the
appropriate government means the state government.

Executive [Sec. 2(a)]- means the body, by whatever
name called, to which the management of the affairs
of a trade union is entrusted.



Trade dispute [Sec. 2(g)]- it means any dispute-
Between employers and workmen, or
Between workmen and workmen, or
Between employers and employers which is connected
with (i) the employment or non-employment, or (ii) the
terms of employment, or (iii) the conditions of labour 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

Trade Union [Sec. 2(h)]- it 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 employer, or
For imposing restrictive conditions on the conduct of
any trade or business.

Registered trade union [Sec. 2 (e)]- means a
trade union registered under the Act.
Acts not to apply to registered
trade unions
The following acts do not apply to registered
trade unions:

The Societies Registration Act, 1860
The Co-operative Societies Act, 1912; and
The Companies Act, 1956

The registration of any trade union under these
Acts is void.
Appointment of registrars

State government appoints The Registrar of
Trade Unions for the State. [Sec. 3(1)]

It may also appoint Additional and Deputy
Registrars of Trade Unions. [Sec. 3(2)]

The state government defines the local limits
within which they shall exercise and discharge
the powers and functions as specified. [Sec. 3(2)]


Registration of Trade Unions
Mode of Registration (Sec. 4)

Application for registration

Any 7 or more members of a trade union, may, apply for its
registration [Sec. 4(1)]

Applicants ceasing to be members or dissociating not to
affect application unless their number is more than half

Some of the applicants may cease to become members or
may dissociate themselves by giving a notice to the Registrar.
In such a case, the application does not become invalid merely
because of this fact.
However, if the number of applicants ceasing to be members
exceeds half of the total number of persons, the application
becomes invalid.
Application for registration to Registrar (Sec. 5)

Application made to the registrar must be accompanied
by a copy of its rules and a statement of the following
particulars:

a) The names, occupations and addresses of the members making
the application;
b) The name of the trade union and address of its head office; and
c) The titles, names, ages, addresses and occupations of the
officers of the trade union [Sec. 5(1)]

If a trade union has been in existence for more than 1
year before making an application, a general statement
of its assets and liabilities should be submitted to the
Registrar along with the application [Sec. 5(2)].
Rules of trade union (Sec. 6)- a trade union is entitled to
registration only if its executive is constituted in
accordance with the provisions of this act and its rules
provide for the following matters:

Name of the Trade Union

The whole of its objects

The whole of the purposes for which the general funds of the
TU shall be applicable under Sec. 15

The maintenance of a list of the members of the TU and
adequate facilities for the inspection thereof by the office-
bearers and members of the TU

The admission of ordinary members who shall be persons
actually engaged or employed in the industry with which the
TU is connected, and also the admission of the number of
honorary or temporary office-bearers to form the executive of
the TU
The payment of subscription by the members of the TU which
shall not be less than 25 paise per month per member

The conditions under which any members shall be entitled to
any benefit assured by the rules and conditions under which
fines may be imposed on the members

The manner in which the rules shall be amended, varied or
rescinded

The manner in which the members of the executive and other
office-bearers of the TU shall be appointed and removed

The safe custody of the funds of the TU, and annual audit of
the accounts thereof, and facilities for inspection of the
account books by the office bearers and members of the TU

The manner in which the TU may be dissolved
Power to call for further particulars and to require
alteration of name (Sec. 7)

Registrar may call for further information to confirm that an
application complies with the provisions of Sec.5 and Sec. 6

If the name of the TU proposed to be registered is identical
with any other existing TU, the Registrar shall require the
applicants to alter the name of the TU stated in the application

Registration (Sec. 8)- on being satisfied with all the
requirements, the Registrar shall register the TU.

Certificate of Registration (Sec. 9)- the Registrar shall
issue a certificate of registration which shall be a conclusive
evidence that the TU has been duly registered under the Act

Characteristics of registered TU on incorporation
(Sec. 13)-

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 composed

It has perpetual succession and a common seal

It has the power to acquire and hold both movable
and immovable properties

It has the power to contract

It can by the name under which it is registered sue
and be sued
Change of name (Secs. 23, 25, and 26)

Any registered TU, with the consent of not less than
2/3rds of total number of its members change its
name (Sec. 23)

Notice in writing signed by the Secretary and the 7
members of the TU shall be sent to the Registrar
[Sec. 25(1)]

If the proposed name is not identical with any
existing TU the Registrar shall change the name of
the TU [Sec. 25(2)]

The change of name shall have effect from the date
of such registration [Sec. 25(3)]

The change in name does not affect any rights or
obligations of the TU or render defective any legal
proceeding by or against the TU [Sec. 26(1)]
Registered office (Sec. 12)-

All communication and notices may be addressed
to the registered office
Notice of any change shall be given within 14 days
to the Registrar in writing

Who may become members (Sec. 21)

Any person who has attained the age of 15 years

One can be an office bearer of a TU only when
attains the age of18 years

It is only persons engaged in trade or business who
can form a TU or become members of a TU
Cancellation of registration &
appeal
Cancellation of registration (Sec. 10)

a) On the application of the TU to be verified in the
prescribed manner

b) If the Registrar is satisfied that certificate has been
obtained by fraud or mistake

c) If the Registrar is satisfied that the TU has
i. Ceased to exist
ii. Wilfully contravened any provisions of the Act
iii. Allowed any rule to continue in force, which is
inconsistent with the provisions of the Act
iv. Rescinded any rule which ought to be there

In cases (b) & (c), the Registrar has to give the TU not less than 2 months pervious
notice in specifying the reasons for cancellation of registration
Rights & Privileges of a registered
TU
Body corporate (Sec. 13)

Separate fund for political purposes (Sec. 16)

Immunity from punishment for criminal conspiracy
(Sec. 17)

Immunity from civil suits (Sec. 18)

Enforceability of agreements (Sec. 19)

Rights to inspect books of trade union (Sec. 20)

Right of minors to be members (Sec. 21)
Duties & Liabilities of a registered TU
Change of registered office (Sec. 12)

Objects on which general funds may be spent
(Sec. 15)

Constitution of a fund for political purposes (Sec.
16)

Proportion of officers to be connected with the
industry (Sec. 22)

Returns (Sec. 28)

Disqualifications of office-bearers of TU (Sec. 21-
A)
Amalgamation of trade unions
(Secs. 24 to 26)
Amalgamation (Sec. 24)

Notice of amalgamation (Sec. 25)

Effect of amalgamation (Sec. 26)
Dissolution of trade union
Notice of dissolution, signed by 7 members and
by the secretary of the TU shall be sent to the
Registrar

Notice to be sent within 14 days of dissolution

If the Registrar is satisfied that the dissolution is
in accordance with the rules of TU, he shall
register such dissolution

Dissolution shall take effect from the date of such
registration
Penalties

Failure to submit returns (Sec. 31)

Supplying false information regarding TU (Sec.
32)

Cognizance of offences (Sec. 33)