Trade union act 1926

1
Presented by :
Balbir Swami
Roll No. 14103002
M.Com(F)

Prior to 20th
century, trade union activities were
considered unlawful.
In 1920, Madras, the leaders of trade union of
binny & co. were imprisoned for bonafide trade
union activities.
Therefore, to protect them, Trade union Act 1926
was enacted and came into force with effect from
1st
June, 1927.
Apply to only those unions registered under it.
Act extends to the whole of India except the
State of Jammu & Kashmir.
2

Registration of trade unions with the registrar of Trade
Unions.
Registered trade union shall be a body corporate and
shall have perpetual succession and a common seal.
It lays down:-
-rights and Liabilities
-Objects on which general funds of trade unions may be
spent
Immunity from civil suits in certain cases
Acts not applicable to registered trade unions:
-The Societies Registration Act,1860
-The Cooperative Societies Act,1912
-The companies Act,1956 3

CHAPTERS CONTENTS SECTIONS
I Title, extent & commencement of the
act along with important definitions
1 and 2
II Registration of TU 3 to 14
III Rights & Liabilities of registered trade
unions, Amalgamation and
Dissolution of TU
15 to 28
IV Powers to make regulations & its
publications
29 and 30
V Consequence of failure to submit
Return, False Information regarding
TU
31 to 33
4

Section 1: Title, extent &
commencement
This Act may be called Trade Union Act
1926
The extent of it is entire India
It shall come into force on such date as the
Central Govt. may appoint.
5

DEFINITIONS(Sec. 2)
Appropriate Government
Executive
Office-Bearer
Trade Dispute
Trade Union
6

Appropriate Government [Sec. 2]:
In relation to Trade Unions whose objects are
not confined to one state 'the appropriate
Government' is the Central Government. In
relation to other Trade Unions, the
'appropriate Government' is the State
Government.
Executive [Sec. 2(a)]:
Executive means the body of which the
management of the affairs of a Trade Union
is entrusted.
7

Any “combination”(and not associations) whether
temporary or permanent.
Purpose is to regulate relations between:
-workmen and employers;
-workmen and workmen; or
-employers and employers
8

Trade Dispute [Sec. 2(g)]: A trade dispute means
any dispute between
1. the employers and workmen,
2. the workmen and workmen and
3.the employers and employers
which is connected with the employment or non-
employment, or the terms of employment, or the
conditions of labor of any person.
9

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.
11
Cease to
be a
member
Registration
is invalid
Cease to
be a
member
Registration
is valid

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:
Any member
to which TU is
entrusted
12

4) Provisions to be contained in the Rules of
Trade Unions(Sec. 6)
-
Name of TU
Whole of the objects
for which the TU has
been established.
Whole of the purpose
for which the general
funds of the TU shall be
applicable.
list of members of
TU and their
inspection
admission of ordinary
members(employee) to
whom TU is connected &
the number of temporary
members as office-
bearers(forms the
executive of TU)
Payment of
subscription 25
paise/month/mem
ber
Conditions under-
benefit entitled to
members
Manner for every
appointment and removal of
office-Bearer/
Dissolve of TU
Manner of
Annual Audit of
the account
books 13

5) Power to call for further particulars and to
require alterations of names(Sec. 7)
If TU is proposed to be registered is identical
with that by which any other existing
shall refuse to register TU until such alteration
has been made.
14

6) 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 from the date of such
compliance.
7) Certificate of registration (Sec. 9)
in the prescribed form which shall be conclusive
evidence that the Trade Union has been duly
registered under this Act.
15
60 days

by the Registrar
- on the application of the TU
- certificate has been obtained by fraud or
mistake
- TU has ceased to exist or has willfully and after
notice from the Registrar contravened any
provision of this Act
16
Provided that not less than 2 months previous notice in
writing specifying the ground on which it is proposed to
withdraw or cancel the certificate shall be given by the
Registrar to the Trade Union

Appeal to the high court by any person aggrieved
by any:-Refusal to register a TU by Registrar
:-Withdrawn or Cancellation of a certificate
The appellate court may:
17
Appeal within 60 days of the date on which the registrar
passed the order.

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.
18

Reg. TU becomes a legal entity distinct from its
members.
“Body corporate” means a succession
rights and duties distinct from those of the
individual persons
19
BODY
CORPORATE
COMMON SEAL
PERPETUAL
SUCCESSION

The Societies Registration Act 1860
The Cooperative Societies Act 1912
The Companies Act 1956
20

Objects on which general funds may be spent
Constitution of a separate fund for political
purposes
Criminal conspiracy in trade disputes
Immunity from civil suit in certain cases
Enforceability of agreements
Right to inspect books of Trade Union
Rights of minors to membership of Trade
Unions
21

The payment of salaries, allowances to office bearers and
executive
The payment of expenses for the administration of Trade
Union
The prosecution or defense of any legal proceedings
against Trade Union
Compensation for members for loss arising out of a trade
dispute
Expenses on social welfare of the members
To upkeep the periodicals published, if any
22

A registered Trade Union should have a
separate fund from contributions of its members
for the furtherance of political interest of any of
its member or office bearer.
No member shall be compelled to pay his or her
contribution as far as political purpose is there
23

No office bearer or member of a registered union shall be
liable under s120-B of the Indian Penal Code
S120-B states-
An illegal act
An act which is not illegal by illegal means but is
designated as criminal conspiracy
24

No suit or other legal proceeding shall be
maintainable in any civil court against any union
of any act done in contemplation or furtherance
of a trade dispute to which a member of union is
concerned , even if breaks any civil laws
25

Notwithstanding anything contained in any
other law for the time being in force, an
agreement between the members of a registered
union shall not be void or voidable a merely by
reason of the fact that any objects of the
agreement are in restraint of trade
26

The account books of a registered union and the
list of members shall be open to inspection by an
office bearer or member of the union
27

Any person who has attained the age of 15 may
be a member of the union subject to any rules the
union to the contract and may enjoy all the rights
of a member and execute all instruments and
give all the acquaintances necessary to be
executed or given under the rules
28

A person shall be disqualified if
a. he has not attained the of 18 years
b. He has been convicted by a court in India of any
offence involving moral turpitude and sentenced to
imprisonment, unless a period of 5 years has elapsed
since his release.
29

Not less than one-half of the total no. of the office –
bearers of every registered trade union must be
person actually engaged of employed in an industry
with which the trade union is connected.
Appropriate Govt. may exempt a TU from the
application of this provision by special or general
order.
30

Change of name(Sec 23):-consent of not less than two
thirds of the total number of its members and subject
to the provisions of section 25
Amalgamation of Trade Unions(Sec 24):-with or
without dissolution or division of the funds of such
Trade Unions, provided that:-
31

Notice of change of name or amalgamation(Sec 25)
32
In writing & signed by
secretary & 7
members of TU
Name Existing?
change of name &
Amalgamation
shall have effect
from the date of
such registration.
Sec. 26

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.
33

General Statement
Statement of Change
Intimation Of Every Alteration Rules
34

The appropriate Govt. can make regulations for the
purpose carrying into effect the provisions of this act
The manner in which Unions and its rules shall be registered
and fess payable on registration
The transfer of registration in case any Trade Union has
changed its HO from one state to another
The manner and qualification of persons by whom, the
accounts of Trade Unions shall be audited
35

Before changing the regulations, a draft of the
proposed regulations should be made and
published before 3 months of changing
regulations and it should be published for general
information
Regulations so made shall be published in the
official Gazette, and on such publication shall
have effect as if enacted in this Act.
36

If default is made on the part of any Trade Union
of giving notice or sending any statements and
accounts as discussed earlier then the office-
bearer will be punished with a fine. In case there
is no office-bearer then the executive will be
punished.
37

Any person who, willfully and with intent to
deceive, supplies any false information regarding
Trade Union to a person who is willing to join the
Trade Union, or supplies any altered statement or
accounts of a Trade Union to a person who is will
to join the Trade Union, is liable to monetary
punishment or fine.
38

No court inferior to that of a Presidency Magistrate or
a Magistrate of the first class shall try any offence
under this Act.
39

Trade union act 1926

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