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SALIENT FEATURES OF

THE TRADE UNION ACT


1926
By

Prof. H A C POPPEN
Director
CHRIST COLLEGE INSTITUTE OF MANAGEMENT
BANGALORE -560 029
Phone : 080-4012 9345(O)
080-55359746(R)
Email: hcpoppen@sify.com
I. SCOPE OF THE ACT (Sn.1)
DEFENITION OF TRADE UNION COVERS:

WORKMEN’S ORGANIZATIONS AS WELL AS


EMPLOYERS ORGANIZATIONS
[OFFICERS & MANAGERS CAN FORM TRADE
UNIONS, GOVT. TOOL ROOM OFFICERS
ASSN VS ASST. LAB. COMMISSIONER
2002 (2) LLJ339[HC-KAR]H
II ADMINISTERED BY [Sn.2(a)]
APPROPRIATE GOVERNMENT

 IF UNION’S ACTIVITIES ARE TO : CENTRAL


COVER MORE THAN ONE STATE GOVERNMENT

 IF ACTIVITIES LIMITED TO ONE STATE : STATE


GOVERNMENT

ADMINISTRATION THROUGH REGISTRAR OF TRADE UNIONS


APPOINTED BY APPROPRITE GOVERNMENT [CENTRAL OR
STATE]
III PROCEDURE FOR OBTAINING
REGISTRATION [Sn. 5,6,7,8,9]
- SIGNATURE OF 7 OR MORE MEMBERS REQUIRED.
- PREPARE RULES PROVIDING FOR ALL FOLLOWING ITEMS:-

 NAME OF TRADE UNION.


 OBJECTS OF THE UNION.
 PURPOSES FRO WHICH THE GENERAL FUND CAN BE
USED.
 MAINTENANCE OF MEMBERSHIP LIST AND
PROVISION
FOR INSPECTION BY MEMBERS.
 A MINIMUM SUBSCRIPTION OF 1 Rs PER MONTH.

 MANNER OF AMENDING OR RESCINDING RULES.

 METHOD OF DISSOLVING UNION, REMOVING OFFICE


BEARERS AND MEMBERS.

 SAFE CUSTODY OF FUNDS.

 ANNUAL AUDIT OF ACCOUNTS & INSPECTION BY


MEMBERS.
IV GRANT OF REGISTRATION

[Sn. 8,9,10]
 IF THE APPLICATION PROVIDES FOR
PARTICULARS FOR ALL ITEMS IN PARA III ABOVE
AND THE RULES OTHERWISE MEET WITH
REQUIREMENTS OF THE ACT, A REGISTRATION
CERTIFICATE WILL BE ISSUED.

 THE REGISTAR CAN WITHDRAW OR CANCEL


REGISTRATION FOR CERTAIN SPECIFIED
REASONS.
V CANCELLATION OF REGISTRATION
A REGISTRAR CAN CANCEL / ANUL THE REGISTRATION
AFTER GIVING TWO MONTHS ADVANCE NOTICE SPELLING
OUT THE GROUNDS.

GROUNDS CAN BE :-

• REGISTRATION HAS BEEN OBTAINED BY FRAUD OR BY


MISTAKE
• TRADE UNION HAS CEASED TO FUNCTION
• EVEN AFTER NOTICE FROM REGISTRAR, UNION IS
CONTINUING TO RETAIN IN THEIR BYE-LAWS OR RULES
PROVISIONS IN CONTRAVENTION OF TRADE UNION ACT
• THE UNION HAS RSCINDED FROM THEIR BYE-LAWS ANY
PROVISION REQUIRED TO BE MAINTAINED UNDER Sn.6
• IF THE MEMBERSHIP DROPS BELLOW THE REQUIRED
NUMBER [Sn 9C]
VI DISSOLUTION OF TRADE UNIONS [Sn.27]

 A UNION CANDISSOLVE ITSELF BY MEMBERS VOTING


SO

 A RESOLUTION SIGNED BY MEMBERS AND


SECRETARY MUST BE SENT TO REGISTRAR WITHIN 14
DAYS OF THE MEETING

 DISSOLUTION EFFECTIVE FROM DATE RECORDED BY


REGISTRAR

 IF RULES DO NOT PROVIDE FOR DISTRIBUTION OF


FUNDS, REGISTRAR WILL DECIDE THE DISTRIBUTION
VII CHANGE OF NAME OR
AMALGAMATION OF UNIONS
[Sn.23, 24, 25 ]

 CHANGE NAME IF 2/3 APPROVE AND INFORM


REGISTRAR

 AMALGAMATE IF AT LEAST 30% OF EACH UNION


FAVOURS IT
VIII BENEFITS OF REGISTRATION
[Sn. 15, 16, 17, 18, 19]
- PRIOR TO ACT, TRADE UNION ACTIVITIES AMOUNTED TO
VIOLATION OF Sn.120 OF IPC- A CRIMINAL OFFENCE

- IF REGISTERED UNDER ACT, MAMBER / OFFICE BEARERS


GIVEN CERTAIN AMOUNT OF LEGAL PROTECTION AGAINST
CRIMINAL PROSECUTION [PROVIDED THEIR AGITATION IS
PEACEFUL]

- CAN PURSUE LEGITIMATE TRADE UNION ACTIVITY WITHOUT


FEAR OF CRIMINAL PROSECUTION

- AN AGREEMENT IN RESTRAINT OF TRADE ISVOID UNDER


CONTRACT ACT – THAT IS NOT APPLICABLE TO LEGITIMATE
TRADE UNION ACTIVITIES
IX MEMBERSHIP [Sn. 20,21 ]

- MINIMUM AGE 15 YEARS

- MEMBERSHIP LIST MUST BE OPEN FOR


INSPECTION BY MEMBERS

- CURRENT RATE OF SUBSCRIPTION IS RUPEE


PER MONTH [UNION COULD COLLECT HIGHER
SUBSCRIPTION]
X OFFICE BEARERS [21A, 22]
• MINIMUM AGE 18 YEARS

• MUST NOT BE CONVECTED FOR MORAL


TURPITUDE WITH PUNISHMENT OF
IMPRISONMENT – UNLESS 5 YEARS HAVE
ELAPSED SINCE RELEASE FROM PRISON

• NOT MORE THAN 50% CAN BE OUTSIDERS


(THOSE WHO ARE NOT WORKMEN OF THE
ESTABLISHMENT / INDUSTRY
[REDUCED TO 331/3%]
XI MAINTENANCE OF ACCOUNTS &
ANNUAL RETURNS [Sn. 15,16,17]
- MUST KEEP PROPER BOOKS OF ACCOUNTS.
- MUST BE AVAILABLE FOR INSPECTION BY MEMBERS.
- MUST BE AUDITED.
- GENERAL FUND TO BE SPENT ONLY ON
EXPENDITURES ALLOWED UNDER Sn.15.
- A SEPARATE POLITICAL FUND (OPTIONAL) CAN BE
COLLECTED FROM MEMBERS AND UTILISED FOR
POLITICAL PURPOSES LISTED UNDER SN.16.
- ANNUAL RETURNS AND AUDITED ACCOUNTS MUST
BE FILLED BEFORE REGISTRAR – IF NOT DONE,
WILL ATTRACT A FINE.
XII PURPOSES FOR WHICH THE FUNDS
COULD BE USED:

(A) GENERAL FUND [Sn.15] [COMPULSORY COLLECTION


FROM ALL MEMBERS]
1. FOR PAYMENT OF SALARIES AND ALLOWANCES OF
OFFICE BEARERS.
2. FOR DEFENDING INDUSTRIAL DISPUTES IN COURTS
PERTAINING TO MEMBERS.
3. FOR ACTIONS TO PROTECT TRADE UNION RIGHTS.
4. FOR MEETING RELIGIOUS / SOCIAL / EDUCATIONAL
EXPENSES OF MEMBERS.
5. FOR PUBLICATION OF PERIODICALS ON LABOUR
MATTERS.
6. FOR ANY OTHER MATTER NOTIFIED BY
GOVERNMENT.
(B) POLITICAL FUND [Sn.16] [OPTIONAL]

• TRADE UNIONS CAN COLLECT A SEPARATE POLITICAL


FUND.

• CONTRIBUTIONS SHOULD NOT BE MADE


COMPULSORY.

• IT SHOULD NOT BE MIXED WITH GENERAL FUND.

• CAN UTILIZE FOR OBJECTS LISTED IN Sn.16 LIKE


EXPENSES ON MEMBERS CONTESTING FOR ELECTION
TO LEGISLATIRES ETC. OR TO MEET EXPENSES FOR
HOLDING POLITICAL MEETINGS.
XIII RIGHTS OF REGISTERED
UNIONS [Sn.15,16]

• CAN ACQUIRE IMMOVABLE PROPERTY IN UNION’S NAME

• CAN SUE AND BE SUED AS LEGAL PERSON

• CAN CONSTITUTE POLITICAL FUNDS AND COLLECT


SUBSCRIPTIONS

• ENJOY PARTIAL IMMUNITY FROM CRIMINAL


PROSECUTION

• CAN NOMINATE MEMBERS TO WORKS COMMITTEES


UNDER Sn.3 OF I.D. ACT.
XIV GOVERNMENT’S POWER TO

REULATE

- GOVERNMENT CAN REGULATE


TRADE UNION REGISTRATION AS PER
Sn.29 & 30
XV AMENDMENTS IMPLIMENTED
FROM 09-01-2002
A - MINIMUM MEMBERSHIP REQUIREMENT:-

(a) FOR WORKFORCE LESS THAN 7O = 7 WORKMEN


(b) FOR ,, BETWEEN 71 TO 1000 = 10% WORKFORCE
(c) FOR ,, ,, ABOVE 1000 = 100 WORKMEN

B - MAXIMUM NUMBER OF OUTSIDERS AS LEADERS

(a) FOR EXISTING UNIONS [INORGANIZED SECTOR] = 50% TO 331/3%


(b) PERSONS HOLDING POSITIONS OF PROFIT FROM GOVT ARE DEBARED
(c) RETIRED / RETRANCHED WORKMEN OF SAME ESTABLISHMENT WILL BE

TREATED AS INSIDERS

C - MINIMUM SUBSCRIPTION ENHANCED FROM 25 ps TO Rs. 1 pm