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THE TRADE UNIONS ACT 1926

• The Trade Unions Act 1926, is one of the old

enactments in the field of Labour Laws but it is a
conservative piece of legislation in as much as it as
it deals only with the registration of the trade unions
and legal status of registered trade unions.The
constitution of India confers on all citizens a
fundamental right to from associations or unions.
• The right to form union is thus doubly recognized in
India by the constitution of India and The Trade
Unions Act 1926.
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• What is the objective of the Trade Unions Act?
The limited objective of this Act provide for the
registration of the trade unions and to confer on
registered trade unions certain protection and
privileges.

• What is the meaning of “trade union”

As ordinarily understood the trade union means a
combination formed for the purpose of regulating the
relations between workmen and employers. The
definition of trade union given in The Trade Unions Act
1926, however includes a combination formed for the
purpose of regulating the relations not only between
workmen and employers but also between workmen
and workmen or between employers and employers.
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 What is the procedure for the registration of
a trade union?
(a) At least seven members of the trade union have to make an
application in the prescribed form and accompanied by the
prescribed fee to the Registered for Trade unions for the
registration of the trade union the application must be
accompanied by a copy of the rules of the trade union and
should give particulars about its name and addresses its
members and officers.

(b) The Registrar if he is satisfied that the trade union has

complied with all the requirements of the Act will register the
trade union and issue a certificate of registration to it

(c) The certificate of registration will be conclusive evidence

that the trade union has been duly registered under the Act.
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• When there is an exiting Trade Union registered under the
name of all India Trade union congress (AITUC) can the
registrar grant registration to a new Trade Union under the
name of AITUC hawkers Union?

Section 7(2) of the Trade Union Act 1926 reads as under if the
name under which a trade union proposed to be registered is
identical with that by which any other existing trade union has
been registered or in the opinion of the registrar so nearly
resemble such name as to be likely to deceive the public or the
members of either trade union the registrar shall require the
person applying for registration to alter the name of the trade
union stated in the application and shall refuse to register the
union until such alteration has been made considering section 7
of the Act It will not be possible for the registrar to register any
other union under the name of AITUC hawkers union which is
similar or deceptively similar to the name of All India Trade
Union Congress (AITUC)
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• Can supervisory officers and managers
from a trade union?

Supervisory officers and managers in an industry can

from a trade union and the same can be registered
under the definition of workmen under the Act All
persons employed in trade or industry are included it
is not restricted as in any other labour legislation when
the act its self provides for definition and for a wider
meaning the court cannot narrow it by its decision.

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 The government of Maharashtra by notification dated 13-12-2001 has revised the
fees payable under the Bombay Trade Union Regulation 1927 as under-

SR DESCRIPTION FEES
No. Rs.
1 (a) Registration of a Trade union with a membership of 1000 or 600
over
(b) Registration of trade union with a membership of less than
1000

2 Duplicate certificate of registration 400

3 Registration of alteration of rules 50

4 Inspection of register of trade union 25

Maintained by the Register 50

5
Inspection of a document in the possession of the register

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• Is registration of trade union compulsory?

The Trade Union Act 1926 does not make registration of trade
registration of a trade union compulsory. But it is advisable to
get a trade union registered under the Act because the Act
confers many rights on a registered trade union.

• Is a trade union required to have a certain

minimum membership?

Section 9-A required that registered trade union shall at all time
continue to have not less than ten per cent or one hundred of
the workmen whichever is less subject to a minimum seven
engaged or employed in an establishment or industry with
which it is connected as its members. 8
• Can a trade union registered under the trade union
Act 1926 be registered again under the Societies
Registration Act 1860 the Co-operative Societies
Act 1912 or the companies Act 1956?

A trade union which is already registered under the trade union

Act 1926 cannot be registered again under the societies
registration Act 1860 the Co-operative societies Act 1912 or the
companies Act 1956 and the registration of any such trade
union under any of the said Act will be void.

• Can the registrar of trade union register a union of

members of the Armed forces?

The registration of such union initially granted by a mistake can

be made invalid and therefore cancelled. 9
• What is the legal status of registered trade union?

(a) A registered trade union is a body corporate having a perpetual

succession and common seal.

(b) It has power to acquire and hold both movable and immovable property
and to enter into contracts.

( c) It can sue and be sued by its own name

(d) Its office bearer or member cannot be prosecuted for criminal conspiracy
for following its legitimate objects

(e) No legal proceeding can be filed in any civil court against it in respect of
any act in furtherance of a trade dispute even if such act (i) induces some
other person to break a contracts of employment or (ii) is in interference
with the trade business or employment of some other person or (iii) is in
interference with right of some other person to dispose of his capital or his
labour as he wills.

(f) Any agreement between its members is not void or voidable even if its
object are in restraint of trade 10
• Can a trade union represent a workmen engaged
or employed in an industry with which the trade
union is not connected?

If the constitution of a trade union does not allow it to represent

a workmen engaged or employed in a particular industry it is
not entitled to represent such a workmen.

• Is the immunity from civil suit in respect of acts of

a trade union its office bearer and members
available under section 18 of the Act absolute?

The immunity from civil suit will not be available in respect of

acts which are unlawful tortuous or violent and which fall out
umbrella of protection of section 18 of the Act.
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• In what circumstances the registration of a trade union can
be cancelled?

The registrar or trade union can withdraw or cancel certificate of

registration of a trade union if-

a) The trade union applies for its cancellation

b) The registrar is satisfied that the certificate has been obtained by

fraud or mistake

c) The trade union has cased to exist

d) The trade union has willfully contravened any provision of the Act

By an amendment to an Act , the registrar of trade union is

empowered to withdraw or cancel thee registration of any trade
union workmen if it ceases to have the requisite number of
members. 12
• What is the procedure the registrar has to follow before the
certificate of registration of trade union is withdrawn or
cancelled?

The registrar has to give to the trade union not less than two months
previous notice in specifying the ground on which it is proposed to withdraw
or cancel the certificate.

• What is the scope of the power of the registrar of trade

union with regard to cancellation of the registration of
trade union?

The registrar can invoke the power of cancellation of registration of a trade

union only if there is sufficient material before him to establish that the trade
union concerned has committed willful contravention of any provision of the
Act in other words unless the international violation of any provision of the
Act is established the registrar cannot invoke the said power.

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• Does the registrar of trade unions possess the
power to revoke or withdraw an order of
registration of a trade union?

There cannot be a withdrawal or revocation of the initial order of

de-registration of trade union in the absence of any statutory
provision authorizing the registrar to do so.

• What are the functions of the registrar of trade

unions?

The registrar of trade union performs the following functions

a) Registration of trade unions
b) Withdrawal or cancellation of registration of trade unions
c) Sanction of prosecution for the offence committed under
the trade unions Act 1926 14
• Can a minor be admitted as a member of a registered trade union?

If a person has attained the age of 15 years he can be admitted as a

member of a registered trade union provided that there is no prohibition in
the rules of the trade union on admitting any minor as its members.

• Does a person automatically ceases to be a member of the union on

cessation of employment?

There is no provision in the Act providing for automatic cassation of

membership on cessation of employment

• What are rights of a members of registered trade union?

Every office bearer or member of a registered trade union has a right to

inspect the books of accounts and also the list of members of the trade
union at such times as may be provided for the rules of the trade union.

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• Can any person be chosen as an office bearer of a
registered trade union?

For being qualified to be chosen as an office bearer of a

registered trade union a person (i) must have attained the age
of 18 years; and (ii) must not have been convicted of any
offence involving moral turpitude and sentenced to
imprisonment, unless a period of 5 years has elapsed since his
release.

• Is there any restriction on the number of outsiders

who can be the office bearers of a registered trade
union?

The act providers that the number of outsiders shall not be “ore
than one-third of total number of office bearers or five,
whichever is less.”
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• Can the recognition of a trade union be withdrawn
without giving to the union opportunity of being heard
in the matter?

A refusal to grant recognition and withdrawal of recognition once

granted cannot be placed on the same footing though the grant of
recognition to a trade union may be voluntary recognition once
granted to it could not be withdrawn without giving to it opportunity
of being heard in the matter.

• Does the registrar of trade unions, under sections 8

and 28 possess the power to hold any quasi-judicial
enquiry?

The registrar of trade unions under sections 8 and 28 can hold only
an administrative enquiry he has no power under those sections to
hold any quasi-judicial enquiry by allowing parties to examine
witnesses and allowing such witnesses to be cross-examined.
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• Does the registrar of trade union under section 28
possess the power to decide any dispute between
rival office bearers of a trade union?

There is no provision in the Act empowering the registrar of

trade union to exercise any superintendence or control over the
internal affairs of a trade union

• Is it permissible for a trade union constitute a

political fund apart from its general fund?

It is permissible for a registered trade union to constitute a

separate fund for the promotion of the civil and political interest
of its member contribution to the fund will be optional and no
member will be compelled to contribute to the fund
consequently a member who does not contribute to the fund
shall not be deprived of any benefits of the trade union. 18
• Can a trade union change its name?
A registered trade union can change its name with the consent of not less
than two thirds of the number of its member and after following the
procedure prescribed under section 25 of the Act.

• Is a civil suit for damages against striking workers

maintainable?

The trade union the office bearers and the member are insulated against a
suit or other legal proceeding linked with the strike of the workers the trade
union Act through Section 18, unfolds un umbrella of protection to them.

• Does the registration of a trade union confer any right on

the said union to be recognised by the employer?

The registration of a trade union does not confer any right on the said union
to be automatically recognized by the employer

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• Is it permissible for any two or more registered Trade
Unions to amalgamate?
It is permissible for any two or more registered Trade Unions to become
amalgamated together as one Trade Union. This can be done after the
votes of at least one half of the members of each or every such Trade Union
are recorded at least sixty per cent of the votes recorded are in favour of the
proposal the procedure concerned unions have also to follow the prescribed
under section 25

• What is the procedure for dissolution of a trade union?

The dissolution of a registered trade union shall be effected in accordance

with the rules of the trade union and notice of the dissolution shall be sent to
the registrar of trade union if the rules do not provide for the distribution of
funds the registrar shall divide for the funds among the members
proportionate to the amounts contributed by them by way of subscription
during their membership.

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• What are the offences under the Act and what is
the punishment for them?

(1) If any office bearer of registered trade union makes a default

in giving any notice or sending any statement as required by
the Act, he would be punished with fine upto Rs. 5.

(2) If any person willfully makes a false entry in the annual Return
of registered trade union, he would be punished with fine upto
Rs. 500.

(3) If any person, with intent to deceive, gives an incorrect copy of

the rules of registered trade union to a member or person
intending to become a member of the trade union, he would
be punished with fine upto Rs. 200.
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• Is a Trade Union required to maintain any
registers and submit any returns?

Every registered Trade Union is required to maintain the

following books and registers

i. Register of membership and subscription.

ii. Register of receipts and disbursements.
iii. Minute book of meetings,
iv. Register of stock, tools and plant,
v. Machine numbers & subscription receipt book,
vi. Register of receipts and disbursement for the political fund,
vii. A file of vouchers.

Every registered Trade Union is required to submit to the

registrar of Trade Unions annual returns of receipts and
expenditure as well as assets and liabilities in the prescribed
form, by the 30th day of April in each year. 22
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