The Trade Unions Act, 1926

Copyright © 2015 by McGraw Hill Education (India) Private Limited. All rights reserved.
The Trade Unions Act, 1926

Chapter 22
Lecture Plan
• Concept and Relevance of Trade Unions

• Backdrop of the Act
• About the Act
• Chapter I: Preliminary
• Chapter II: Registration of Trade Unions
• Chapter III: Rights and Liabilities of Registered Trade Unions
• Chapter IV: Regulations
• Chapter V: Penalties and Procedure
• Administration of the Act
• Summary
Chapter Objectives
• To comprehend the scope and coverage of the Trade

Unions Act, 1926.
• To understand the various definitions given under the Act.
• To develop an understanding of registration of trade
unions, minimum requirement for membership and types
of funds of a registered trade union.
• To grasp the notions of amalgamation and dissolution of a
union, penalties and procedures imposed on a registered
trade union, notice of change of name or amalgamation
and other related concepts.
Key Concepts
• Trade union
• Registration
• Registered office
• Application for registration
• Certificate of registration
• Office bearers
• Membership
• Registrar
• Amalgamation
• Dissolution
• General funds
• Perpetual succession
Concept and Relevance of Trade Unions
• Trade unions
– Bridge the notional and functional gap between the interests of
management and workers
– Maintain cordial relations between management and workers
– A legitimate system to organize workers and to voice their rights and
grievances
• Union representation and collective bargaining
– Keys to the growth of a stable working population
– Enable workers able to
• Gain a more equitable share of the wealth they create
• Improve their working conditions and gain job security
• Unionization necessary for protection of basic worker and human
rights in industrial settings
Backdrop of the Act
• Shri N. M. Joshi
– The main protagonist in the movement for trade union legislation
• Resolution moved in the Central Legislative Assembly In March
1921
– To introduce legislation towards protection of trade unions
• Severe opposition from employers
• The Indian Trade Union Bill, 1925 passed by the Legislature
received assent on 25th March 1926
• Enforced on and from 1st June 1927 as the Indian Trade Union Act,
1926
• Latest amendment in 2001
About the Act
• Chapter I: Preliminary
– As per Section 1
• This Act extends to the whole of India
– Definitions [Section 2]
– Executive [Sec. 2(a)] means the body, by whatever name called, to
which the management of the affairs of a trade union is entrusted
– Office-bearer [Sec. 2(b)] in the case of a trade union, includes any
member of the executive thereof, but does not include an auditor
– Registered office [Sec. 2(d)] means that office of a trade union
which is registered under this Act as the head office
– Registered trade union [Sec. 2(e)] means a trade union registered
under this Act
Contd.
– Registrar [Sec. 2(f)] means
• A Registrar of Trade Unions appointed by the appropriate Government
under Sec. 3
• Includes any Additional or Deputy Registrar of Trade Unions
– Trade dispute [Sec. 2(g)] means
• Any dispute between employers and workmen or between workmen
and workmen or between employers and employers
• Connected with the employment or non-employment, or the terms of
employment or the conditions of labour, of any person
– Trade Union [Sec. 2(h)] means
• Any combination, whether temporary or permanent formed primarily
for the purpose of
– Regulating relations between workmen and employers or between
workmen and workmen, or between employers and employers, or
– Imposing restrictive conditions on the conduct of any trade or
business
• Includes any federation of 2 or more trade unions
Chapter II: Registration of Trade Unions
• Appointment of Registrars [Sec. 3]

– The appropriate Government
• Appoints Registrar of Trade Unions for each State
• Appoints Additional and Deputy Registrars of Trade Unions
– For the purpose of exercising and discharging specified powers and
functions of the Registrar
– Under the superintendence and direction of the Registrar
• Defines the local limits within which any Additional or Deputy Registrar
shall exercise and discharge specified powers and functions
Mode of Registration [Section 4]
• Application for registration by any 7 or more members

• No trade union to be registered unless on the date of making of
application of registration
– At least 10 per cent or 100 workmen, whichever is less, are its
members
– Not less than 7 persons are its members
• Application not to be deemed invalid if
– After the date of the application but before the registration
– Some of the applicants
• Not exceeding half of the total number of applicants
• Cease to be members of the trade union or
• Have given notice in writing to the Registrar dissociating themselves
from the application
Application for Registration [Section 5]
• Every application for registration to be made to the Registrar and

accompanied by
– A copy of the rules of the trade union
– A statement of
• The names, occupations and addresses of the members making the
application
• In the case of a trade union of workmen, the names, occupations and
addresses of the place of work of the members making the application
• The name of the trade union and the address of its head office
• The titles, names, ages, addresses and occupations of the office-bearers
– If in existence for more than 1 year before the making of application
for registration
• A general statement of the assets and liabilities in prescribed form
Provisions to be Contained in the Rules of a Trade Union
[Section 6]
• No trade union to be entitled to registration unless
– Its executive is constituted according to the provisions of the Act
– Its rules provide for
• The name of the trade union
• The whole of the objects for which it has been established
• The whole of the purposes for which its general funds
• Maintenance of a list of the members and adequate facilities for
inspection by the office-bearers and members
• Admission of ordinary members and admission of the number of
honorary or temporary members as office-bearers to form the
executive of the trade union
• Payment of a minimum subscription by members not less than
– Re. 1 per annum for rural workers
– Rs. 3 per annum for workers in other unorganized sectors and
– Rs. 12 per annum for workers in any other case
Contd.
• Conditions of entitlement to any benefit and imposition of any fine or

forfeiture
• The manner in which the rules shall be amended, varied or rescinded
• The manner in which members of the executive and other office-
bearers shall be elected and removed
• The duration of period being not more than 3 years, for which members
of the executive and other office-bearers shall be elected
• The safe custody of the funds of the trade union, an annual audit of the
accounts and adequate facilities for inspection of account books by the
office-bearers and members of the trade union and
• The manner in which the trade union may be dissolved
• Registration [Sec. 8]
– On being satisfied that the trade union has complied with all the
requirements of registration
– The Registrar to register the trade union by entering particulars in a
register
• Certificate of Registration [Sec. 9]
– Issued by the Registrar
– Conclusive evidence
• Minimum Requirement about Membership of a Trade Union
[Sec. 9A]
– A registered trade union to continue at all times to have
• Not less than 10 per cent or 100 of the workmen, whichever is less,
• Subject to a minimum of 7 workmen
– Engaged or employed in an establishment or industry with which it
is connected, as its members
Cancellation of Registration [Section 10]
• A certificate of registration of a trade union withdrawn or
cancelled by the Registrar
– On the application of the trade union to be verified in prescribed
manner, or
– If the Registrar is satisfied that
• The certificate has been obtained by fraud or mistake or
• The trade union has
– Ceased to exist or
– Wilfully and after notice from the Registrar contravened any provision of the
Act or
– Allowed any rule to continue in force which is inconsistent with any such
provision or
– Rescinded any rule providing for any matter provision for which is required
by Sec. 6
• A registered trade union ceases to have the requisite number of
members
• Registered Office [Sec. 12]
– All communications and notices to be addressed to registered office
– Notice of any change in address to be given within 14 days of such
change to the Registrar in writing
• Incorporation of Registered Trade Unions [Sec. 13]
– Every registered trade union
• To be a body corporate by the name under which it is registered
• Shall have
– Perpetual succession and a common seal
– Power to acquire and hold both movable and immovable property and to
contract
• Shall by the said name sue and be sued
• Certain Acts not to Apply to Registered Trade Unions [Sec. 14]
– The Societies Registration Act, 1860
– The Co-operative Societies Act, 1912
– The Companies Act, 1956
Chapter III: Rights and Liabilities of Registered Trade Unions
• Objects on which General Funds may be Spent [Section 15]

– The general funds of a registered trade union not to be spent on any
other objects than
• The payment of salaries, allowances and expenses to office-bearers
• The payment of expenses for the administration of the trade union,
including audit of the accounts of the general funds
• The prosecution or defence of any legal proceeding to which the trade
union or any member thereof is a party
• The conduct of trade disputes on behalf of the trade union or any member
• The compensation of members for loss arising out of trade disputes
• Allowances to members or their dependants on account of death, old age,
sickness, accidents or unemployment of such members
• The issue of, or the undertaking of liability under, policies
– Of assurance on the lives of members
– Insuring members against sickness, accident or unemployment
Contd.
• The provision of educational, social or religious benefits for members

(including the payment of the expenses of funeral or religious ceremonies
for deceased members) or for the dependants of members
• The upkeep of a periodical
• The payment, in furtherance of
– Any of the objects on which the general funds may be spent
– Contributions to any cause intended to benefit workmen in general
• Any other object
– Notified by the appropriate Government in the Official Gazette
– Subject to any conditions contained in the notification
Contd.
• Constitution of a Separate Fund for Political Purposes [Sec. 16]

– A separate fund from contributions separately levied for or made
– For the promotion of the civic and political interests of its members
– In furtherance of any of the following objects
• The payment of any expenses incurred by a candidate or prospective
candidate for election or
• The holding of any meeting or the distribution of any literature in support
of any such candidate or prospective candidate or
• The maintenance of any person who is a member of any legislative body
or
• The registration of electors or the election of a candidate or
• The holding of political meetings or
• The distribution of political literature or political documents of any kind
Contd.
• Right to Inspect Books of Trade Union [Sec. 20]
– Account books and list of members
– Open to inspection by an office-bearer or member of the trade union
– At times provided for in the rules of the trade union
• Rights of Minors to Membership of Trade Unions [Sec. 21]
– Any person who has attained the age of 15 years may be a member of
a registered trade union
• Disqualifications of Office-bearers of Trade Unions [Sec. 21A]
– Disqualification for being chosen as, and for being a member of the
executive or any other office-bearer if
• Not attained the age of 18 years
• 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 release
• Proportion of Officer-bearers to be Connected with the Industry [Sec. 22]
– Not less than one-half of the total number of the office-bearers of every
registered trade union in an unorganized sector
– Persons actually engaged or employed in that industry
• Change of Name [Sec. 23]
– With consent of not less than two thirds of the members
• Amalgamation of Trade Unions [Sec. 24]
– Any 2 or more registered trade unions amalgamated together
– With or without dissolution or division of funds
– Notice of Change of Name or Amalgamation [Sec. 25]
• Notice in writing of every change of name and of every
amalgamation
• In the case of change of name, signed by the Secretary and 7
members
• In the case of amalgamation, by the Secretary and by 7 members of
each and every trade union which is a party thereto
• Sent to the Registrar
Contd.
• Dissolution [Sec. 27]

– Notice of dissolution
– Signed by 7 members and by the Secretary of the trade union
– Sent to the Registrar within 14 days of the dissolution
• Returns [Sec. 28]
– Sent annually to the Registrar
– On or before a prescribed date
– A general statement, audited in the prescribed manner, of
• All receipts and expenditure during the year ending on 31st December
• The assets and liabilities of the trade union existing on 31st December
Chapter IV: Regulations
• Power to Make Regulations [Section 29]

– By the appropriate Government
– To provide for all or any of the following matters
• The manner in which trade unions and rules of trade unions to be registered
• The fees payable on registration
• Transfer of registration for any registered trade union which has changed its
head office from one State to another
• The manner in which, and the qualifications of persons by whom, the
accounts of registered trade unions or of any class of such unions to be
audited
• The conditions subject to which inspection of documents kept by Registrars
to be allowed
• The fees chargeable in respect of inspections
• Any matter to be or may be prescribed
Chapter V: Penalties and Procedure
• Failure to Submit Returns [Sec. 31]

– Punishable with fine up to Rs. 5
– In the case of a continuing default
• Additional fine up to Rs. 5 for each week after the first
– Aggregate fine not to exceed Rs. 50
• Supplying False Information Regarding Trade Unions [Sec. 32]
– For giving any document purporting to be a copy of the rules
– To any member of a registered trade union or to any person intending
or applying to become a member of such trade union
– Punishable with fine up to Rs. 200
Other Sections
• Power to Call for Further Particulars and to Require Alterations of

Names [Sec. 7]
• Appeal [Sec. 11]
• Criminal Conspiracy in Trade Disputes [Sec. 17]
• Immunity from Civil Suit in Certain Cases [Sec. 18]
• Enforceability of Agreements [Sec. 19]
• Effects of Change of Name and of Amalgamation [Sec. 26]
• Publication of Regulations [Sec. 30]
• Cognizance of Offences [Sec. 33]
Administration of the Act
• Enforced through the Central Industrial Relation Machinery (CIRM)

– Attached office of the Ministry of Labour & Employment
– Also known as the Chief Labour Commissioner (Central) Organization
– Headed by the Chief Labour Commissioner (Central)
Summary
• The Trade Unions Act, 1926 is a legislation to provide for the registration of trade
unions, their rights, liabilities and responsibilities.
• Sec. 2(h) defines a trade union as any combination, temporary or permanent,
formed primarily for regulating 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.
• Registrar of Trade Unions for each State is appointed by the appropriate
Government, as per Sec. 3(1).
• Sec. 4(1) lays down that any 7 or more members of a trade union may apply for
registration of the trade union.
• No trade union shall be registered unless at least 10 per cent or 100 of workmen,
whichever is less, are its members on the date of application, as per Sec. 4(2).
• According to Sec. 9, the Registrar, on registering a trade union, shall issue a
certificate of registration in the prescribed form.
• Sec. 9A lays down that a registered trade union shall continue to have not less than
10 per cent or 100 of the workmen, whichever is less, subject to a minimum of 7, as
its members.
Summary
• As per Sec. 13, every registered trade union shall be a body corporate by the name
under which it is registered.
• Sec. 21 lays down that any person who has attained the age of 15 years may be a
member of a registered trade union.
• Any 2 or more registered trade unions may become amalgamated together with or
without dissolution or division of the funds of such trade unions, according to Sec.
24.
• As per Sec. 27(1), when a registered trade union is dissolved, notice signed by 7
members and the Secretary shall be sent to the Registrar within 14 days of the
dissolution.
• According to Sec. 28(1), a general statement, audited in prescribed manner, of all
receipts and expenditure of every registered union during the year ending on 31 st
December and of the assets and liabilities of the union existing on 31 st of December
shall be sent annually to the Registrar, on or before a prescribed date.
• The Trade Unions Act, 1926 is administered by the Ministry of Labour &
Employment, through its Industrial Relations Division.

The Trade Unions Act, 1926

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

The Trade Unions Act, 1926

Uploaded by

Copyright:

Available Formats

Copyright © 2015 by McGraw Hill Education (India) Private Limited. All rights reserved.

The Trade Unions Act, 1926

• Concept and Relevance of Trade Unions

• To comprehend the scope and coverage of the Trade

• Appointment of Registrars [Sec. 3]

• Application for registration by any 7 or more members

• Every application for registration to be made to the Registrar and

• Conditions of entitlement to any benefit and imposition of any fine or

• Objects on which General Funds may be Spent [Section 15]

• The provision of educational, social or religious benefits for members

• Constitution of a Separate Fund for Political Purposes [Sec. 16]

• Dissolution [Sec. 27]

• Power to Make Regulations [Section 29]

• Failure to Submit Returns [Sec. 31]

• Power to Call for Further Particulars and to Require Alterations of

• Enforced through the Central Industrial Relation Machinery (CIRM)

You might also like