Trade Union Act, 1926

Introduction & Objective

⮚ Trade Union Act, 1926 associated with registration & Protection of Trade Unions.
⮚ Act applicable to Whole of India except Jammu & Kashmir.
⮚ Trade Union means an association of workers in 1 or more occupations for protection &
promotion of the interest of working class including workers/labours.

Objective
Following objectives were closely associated with Act, 1926;

1. To protect workers against exploitation by employers.

2. To represent the grievance of employees on behalf of them to the management.
3. To protect & safeguard rights of workers provided to them under employment clause or
labour laws. 4)To increase participation in management for Decision Making.
4. To take disciplinary action against workers doing in-disciplinary actions.

Important Concepts

⮚ Trade Dispute- A Trade Dispute means any dispute between 1)Employer & Workmen
2)Workmen & Workmen,3)Employers & Employers concerned with employment or non
employment or terms of employment or the working conditions provided.
⮚ Trade Union - Trade Union means any combination either temporary or permanent
formed for maintaining the relations between workmen & employers, employers &
employers or workmen & workmen for imposing restrictive conditions on conduct of any
Trade or Business.
⮚ Registered Trade Unions[Section2(e)]- A Registered Trade Union simply means a
Trade Union Registered under Trade Union Act, 1926 implementingall the clauses of the
Act.
⮚ Examples include-a)All India Trade Union Congress (AITUC)
b) Bhartiya Mazdoor Sangh(BMS),c)Hind Mazdoor Sabha(HMS), d)National Labour
Organisation(NLO),e)Trade Union Co-ordination Centre(TUCC)

Prerequisites For Trade Union Registration

⮚ Minimum 10% workmen out of total workmen's from relevant same industry should be
members of Trade Union at the Date of Registration.
⮚ Minimum 7 workmen out of total workmen's from relevant same industry should be
members of Trade Union at the Date of Registration.
⮚ Strength of the workmen in particular industry or establishment must be 70 at least to
enable them to form Trade Union & get registered under the Act, as 10% of 70 would be
7 which is the actual requirement under Trade Union Act, 1926 for Trade Union
Formation & Registration.

Application For Registration of Trade Union should contain

a) Name of 7 persons in Trade Union

b) Occupation of persons
c) Address of persons
d) Place of work of persons
e) Name of Trade Union
f) Address of Trade Union Head Office

Features Of Registered Trade Unions

⮚ Registered Trade Unions have Perpetual Succession (Trade Unions were Separate
Legal Entity as per provisions of Trade Union Act, 1926 & were not get vanished even
after Death of members of Trade Unions)
⮚ Registered Trade Unions Have Common Seal.
⮚ Registered Trade Unions can Sue Others.
⮚ Registered Trade Unions can be Sued by Others.
⮚ Registered Trade Unions can acquire & hold both movable & immovable property.
Rights & Liabilities Of Registered Trade Unions

A Registered Trade Union has the right to maintain

a) A General Fund
b) A separate Political Fund

a. General Fund & Objectives

1. Payment of Salaries & allowances.

2. Payment of expenses for administration of Union including expenses spend on defending
any legal proceeding by or against the union.
3. Settlement of Trade Dispute.
4. Expenditure on Trade Union members for Death, Sickness or Accidents,etc.
5. Providing Educational, Social,Religious Benefits to Trade Union Members.
6. For any other unlikely uses of General Funds by Trade Unions except the General
Purpose use as per law provisions Trade Unions can be restrained by court for applying
its fund in any other purpose.

b. Political Fund & Objectives

1. Electorial Meeting for distribution of any document or literature supporting Electorial

candidate which might be a local authority or a member of legislative body as per Indian
Constitution.
2. For maintenance of member of legislative body as per Indian Constitution.
3. For Political Meeting or distribution of Political Literature or document of any kind.
4. No workmen is obligated for contribution in political fund compulsorily.
5. Non Payment or Payment of political fund can't be considered as an important condition
for Trade Union Membership.

Immunity From Punishment For Criminal Conspiracy

No office bearer or member of Registered Trade Union will be punished under the Sect.
120B,punishment of criminal conspiracy of the Indian Penal Code(IPC) regarding the matters of
General Fund utilization for proper purpose.

Immunity For Civil Suit To Certain Cases

No suit or other legal proceedings can be done against Registered Trade Union in any Civil
Court in following circumstances;

1. Delay in Trade Disputes like 'Contract of Employment'.

2. Trade Union members showing interest or interfering in matters of trade or business.
3. Trade Union members showing interest or interfering in matters of employmentof
persons.
4. Trade Union members showing interest or interfering in matters of removal of labour.
5. Trade Union members showing interest or interfering in matters of compensating or
remunerating the employees.