Trade union act

Trade union act, 1926
The Act extends tothe whole of India.
 Trade Unions "Trade Union" 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 employers, or for imposing restrictive conditions on the conduct of any trade or
business
 Trade unions are formed to protect and promote the interests of their members. Their
primary function is to protect the interests of workers against discrimination and unfair
labor practices.
Meaning of Trade Union and Trade Union Act
TRADE UNION : It is a voluntary organization of workers relating to a specific trade,
industry or a company and formed to help and protect their interest and welfare by
collective action. In simple words, it is an organization of workers who have bonded
together to achieve common goals such as protecting their integrity, higher pay etc.
TRADE UNION ACT : It is an act to provide for the registration of trade unions and in
certain respects to define the law relating to registered trade unions. It is the principle
act which controls and regulates the mechanism of trade unions.
DEFINITION OF TRADE UNION
A trade union is such an organisation which is created voluntarily on the basis of
collective strength to secure the interests of the workers. -
Objectives
 To secure fair wages for workers and improve their opportunities for promotion
and training.
 To improve working and living conditions of the workers.

 To protect the jobs of labor against retrenchment and layoffs.
 To help them in improving levels of production, productivity, discipline and
high standard of living.
 To provide legal assistance to workers in connection with disputes regarding
work and payment of wages.
 To promote individual and collective welfare and thus correlates the workers'
interests with their industry.
 To lay down the procedure for registration of Trade Unions, defining their
rights and liabilities,regulating their activities, and making them more
purposeful for the society.
Functions of Trade Unions (According to National Commission on
Labour):
 To secure for workers fair wages;
 To safeguard security of tenure and improve conditions of service;
 To improve opportunities for promotion and training;
 To provide for educational, cultural and recreational facilities;

 To co-operate in and facilitate technological advance by broadening the
understanding of workers;
 To promote interests of workers in their industries;
 To promote production and productivity, discipline and high standards of
quality;
 To promote individual and collective welfare.
FUNCTIONS & ROLE OF TRADE UNIONS.
 To improve working and living conditions.
 To secure for workers fair wages.
 To enlarge opportunities for promotion and training.
 To promote individual and collective welfare.
 To provide for educational, cultural and recreational facilities.
 To safeguard security of tenure and improve conditions of service.
 To promote identity of interests of the workers with their industry .
TRADE UNIONS IN INDIA
a) INTUC (Indian National Trade Union Congress)
b) AITUC (All India Trade Union Congress)
c) CITU (Centre of Indian Trade Unions)
d) NLO (National Labour Organization)
e) TUCC (Trade Union Congress Committee)
SCOPE OF THE ACT
 This Act provides for the registration of trade unions and in certain respects in
define the law relating to registered Trade Unions.
 The act applies to registered Trade Unions.

Provisions of the Trade Union Act, 1926
Section 3: Appointment of Registrars -
The appropriate Government is empowered to appoint a Registrar of Trade Unions
for each State. It may also appoint Additional and Deputy Registrars of Trade Unions.
Section 4: Mode of Registration -
Any seven or more members of a Trade Union may apply for registration of the Trade
Union under this Act:
 by subscribing their names to the rules of the Trade Union; and
 by complying with the provisions of this Act with respect to registration.
Section 5: Application for registration
Application for registration of a Trade Union shall be made to the Registrar and shall
be accompanied by:
A copy of the rules of the Trade Union;

Statement of the following particulars:-
 The names, occupations and addresses of the members making the
application.
 The name of the Trade Union and the address of its head office.
Where a Trade Union has been in existence for more than one year before the
making of an application for its registration it needs to submit a statement of the
assets and liabilities held by it.
{Sec 6} Provisions to be contained in the Rules of T.U

Every registered Trade Union is required to have written rules dealing with certain
matters. { These matters are specified in Schedule 2 of the Central Trade Union
Registration, 1938.}
A Trade Union shall not be entitled to registration unless :
A) The executive of T.U is constituted in accordance with the provisions of this Act,
and B) It must contains the rules for the following matters:
1) Name of the Trade union.
2) The whole object of the Trade union.
3) The whole purposes for which the funds can be used.
4) The appointment of the members of the executive body.
5) The membership of ordinary members who are actually engaged or employed in
the industry with which T.U is connected and of honorary and temporary members.

6) Subscription fees shall not be less than
a) Rs 1 for per annum for rural workers,
b) Rs 3 per annum for workers in other unorganized sectors,
c) Rs 12 per annum for workers in any other case.
7) The conditions under which a member can get a benefit or has to pay fine.
8) The safe custody of funds and provisions for inspecting or auditing the statements
or other documents of the trade union.
9) Dissolution of the trade union.
{Sec7} Power to call for further Particulars and to Require Alteration of
the Name
 The Registrar may call for further information for satisfying himself that the T.U
complies with the above provisions.
 If the information is not supplied, then registration may be refused and if he is
not satisfied with the information supplied then again it can be refused.
 If the name of the proposed trade union is identical with the name of any
other registered trade union or resembles it, the Registrar must ask for
alteration of the name.
 The object of this restriction is to prevent the public or the members of either
union from being deceived. The Registrar shall refuse to register the union,
until the alteration has been made.
Registration {Sec8}
 The Registrar will register the Trade Union, if he is satisfied that the trade
union has complied with all the Requirements of this Act in regard to
Registration.

 It is mandatory to Registrar to register Trade Union if union satisfy all the
technical requirements.
Certificate of Registration{Sec9}
The Registrar on registering a Trade Union shall issue a Certificate of Registration
which shall be Conclusive Evidence that the Trade Union has been duly registered
under the Act.
Legal Status of a Registered Trade Union
1. A registered trade union is a body corporate with perpetual succession and a
common seal.
2. It can acquire, hold, sell or transfer any movable or immovable property and can
be a party to contracts.
3. A registered trade union can sue and be sued in its own name.
4. No agreement between the members of a Registered T.U shall be void or voidable
merely on the ground that any of its objects is in restraint of trade.
Cancellation of Registration {Sec10}
Power to withdraw or cancel registration of trade union is given to the Registrar. The
Registrar can exercise the power in the following cases, namely:
1) On the application of the Trade Union.
2) Where the Certificate of registration has been obtained by fraud or mistake.
3) Where the Trade Union has ceased to exist.
4) Where any rule of the union is inconsistent with the provisions of the Act.

5) Where Trade union violates any provision of the Act.
6) Where the primary objects of the union are no longer statutory objects.
Appeal {Sec11}
 Any person who is aggrieved by the refusal of the Registrar to register a trade
union or by the withdrawal or cancellation of certificate of registration is given
the right of appeal.
 The appeal must be made within 60 days of the date on which Registrar passed
the order against which appeal is made.
 The appeal shall be made:
 Where the head office of the T.U is situated falling within the jurisdiction
of or labor court or an Industrial Tribunal to that court or Tribunal as the
case may be.
 The appellate court may dismiss the appeal or pass an order directing
the Registrar to register the union and to issue a certificate of
registration.
Registered Office {Sec12}
All communications and notices to 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.
ADVANTAGES OF REGISTRATION :
1) Becomes a body corporate by name under which it is registered, legal entity distinct
from its members of which it is composed.
2) Gets perpetual succession and immovable property.

3) Can acquire and hold both movable and immovable property.
4) Can enter into a contract.
5) Can sue and be sued in its registered name.
RIGHTS AND PRIVILEGES OF TRADE UNION
TRADE UNION FINANCE AND FUNDS
A. Rate of subscription of Union Members:- Section(6) of the trade union act 1926,
provides that the payment of minimum subscription by member shall not be less than;
I. One rupee per annum for rural workers;
II. Three rupee per annum for workers in other un recognized sectors; and
III. Twelve rupees per annum for workers in other cases.
B. General Fund Section 15 of the trade union act, 1926 lays down the purpose for
which general fund of a registered Trade union can be utilized namely
1. The payment of salary allowances and expenses to office bears of trade union;
2. The payment of expenses for the administration of the trade union including Audit
of the accounts of general funds of the trade union
3. The conduct of trade disputes on behalf of then trade union or any member
thereof

C. Political Fund: OR SEPARATE FUND
Trade unions compelled to get into political spheres. Trade Unions which are
registered are permitted as per Section 16 of the Act, to raise separate Political Fund
for is members.
The political Fund can be use for the following expenses.
1. For holding the meeting.
2. For distribution of any document.
3. For holding Political meeting
. 4. For registration of electors.

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