Trade Union Act Of 1926

Trade Unions Act, 1926

The trade Unions Act, 1926 provides for registration of trade unions with a view to render
lawful organization of labor to enable collective bargaining. It also confers on a registered trade
union certain protection and privileges.

The Act extends to the whole of India and applies to all kinds of unions of workers and
associations of employers, which aim at regularizing labor management relations. A Trade
Union is a combination whether temporary or permanent, formed for regulating the relations
not only between workmen and employers but also between workmen and workmen or
between employers and employers.

Registration

Registration of a trade union is not compulsory but is desirable since a registered trade union
enjoys certain rights and privileges under the Act. Minimum seven workers of an establishment
(or seven employers) can form a trade union and apply to the Registrar for it registration.

1. The application for registration should be in the prescribed form and accompanied by
the prescribed fee, a copy of the rules of the union signed by at least 7 members, and a
statement containing
i.) the names, addresses and occupations of the members making the application,
ii.) the name of the trade union and the addresses of its head office, and
iii.) the titles, names, ages, addresses and occupations of its office bearers.
2. If the union has been in existence for more than a year, then a statement of its assets
and liabilities in the prescribed form should be submitted along with the application.
3. The registrar may call for further information for satisfying himself that the application
is complete and is in accordance with the provisions, and that the proposed name does
not resemble.
4. On being satisfied with all the requirements, the registrar shall register the trade union
and issue a certificate of registration, which shall be conclusive evidence of its
registration.

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. It can sue and be sued in its own name.
4. No civil suit or other legal proceeding can be initiated against a registered trade union in
respect of any act done in furtherance of a trade dispute under certain conditions.
5. No agreement between the members of a registered trade union shall be void or
voidable merely on the ground that any of its objects is in restraint of trade.

APPOINTMENT OF OFFICE BEARERS

At least 50% of the office bearers of a union should be actually engaged or employed in the
industry with which the trade union is concerned, and the remaining 50% or less can be
outsiders such as Lawyers, politicians, social workers etc.

To be appointed as an office bearer or executive of a registered trade union, a person must

have

 attained the age of 18 years;

 and not to be convicted of any affiance involving moral turpitude and sentenced to
imprisonment, or a period of at least 5 years has elapsed since his release.

Change of Name & Registered Office

1. A registered trade union may change its name with the consent of at least 2/3rds of the
total numbers of its members.
2. Notice of change of name in writing, signed by the secretary and 7 members of the
union, should be sent to the registrar.
3. The Registrar shall register the change in name if he is satisfied that the proposed name
is not identical with the name of any other existing union and the requirements with
respect to change of name have been complied with.
4. The change of name shall not affect any rights and obligations of the trade union or
render any legal proceeding by or against the trade union as defective.

CHANGE OF REGISTERED OFFICE

Notice of change in registered office address should be given to the Registrar in writing within
14 days of such change.

DISSOLUTION OF A TRADE UNION

A registered trade union can be dissolved in accordance with the rules of the union. A notice of
dissolution signed by any seven members and the secretary of the union should be sent to the
registrar within 14 days of the dissolution. On being satisfied the registrar shall register the
notice and the union shall stand dissolved from the date. The funds of the union shall be
divided by the Registrar amongst its members in the manner prescribed under the rules of the
union or as laid down by the government.

AMALGAMATION OF TRADE UNIONS

Any registered trade union may amalgamate with any other union(s), provided that at least
50% of the members of each such union record their votes and at least 60% of the votes so
recorded are in favor of amalgamation. A notice of amalgamation signed by the secretary and
at least 7 members of each amalgamating union, should be sent to the registrar, and the
amalgamation shall be in operation after the Registrar registers the notice.

Obligations of Registered Trade Unions

 The general funds of a registered trade union should be spent only for the objects
specified such as, payment of salaries, allowances and expenses of its office bearers, its
administrative and audit expenses, prosecution or defense of any legal proceeding for
securing or protecting its rights, conduct of trade disputes, compensation for loss arising
out of trade disputes, compensation for loss arising out of trade disputes, provision of
educational, social or religious benefits and allowances on account of death, old age,
sickness, accident or unemployment to its members, publication of labor journals etc.
The trade union may set up a separate political fund for furtherance of civic and political
interest of members. Contribution to this fund is not compulsory.
 The account books and membership register of the union should be kept open for
inspection by any of its office-bearers.
 A copy of every alteration made in the rules of the union should be sent to the Registrar
within 15 days of making the alteration.
 An annual statement of receipts and expenditure and assets and liabilities of the union
for the year ending on the 31st December, prepared in the prescribed forms and duly
audited should be sent to the Registrar within the prescribed time. This statement
should be accompanied by a statement showing changes in office bearers during the
year and a copy of the rules as amended up to date.

Offence
1. If the registered trade union/its office
bearers or members fail to give any
notice or send any statement as
required under the Act.
2. If any person willfully makes any false
entry in the annual statement of the
Penalty
Fine upto Rs. 5 plus additional fine upto Rs. 5
per week in case of continuing offence.
(Maximum fine imposable Rs. 50)
Fine upto Rs. 500.
 union or its rules.
3. If any person, with intent to deceive, Fine upto Rs. 200.
gives an incorrect copy of rules of the
union to any member or a prospective
member.

TRADE UNIONS (AMENDMENT) BILL, 2019

The Trade Unions Amendment bill was passed on 8th January 2019 in the Parliament to make
the following changes to the existing Trade Unions Act 1926:

 The Trade Unions (Amendment) Bill, 2019 was introduced in Lok Sabha by the Minister
of Labour and Employment, Santosh Kumar Gangwar, on January 8, 2019. The Bill
amends the Trade Unions Act, 1926, which provides for the registration and regulation
of trade unions.
 The Bill seeks to provide for recognition of trade unions or a federation of trade unions
at the central and state level by the central and state government, respectively. Such
trade unions or the federation of trade unions will be recognised as Central Trade
Unions or State Trade Unions, as the case may be.
 The central or state government may make rules for: (i) the recognition of such Central
or State Trade Unions, and (ii) the authority to decide disputes arising out of such
recognition, and the manner of deciding such disputes.