INDUSTRIAL

RELATIONS AND
LABOUR LAWS
 By Prin. Rajhans Gaikwad

[B.Sc, MSW (TISS), LLM, NET, SET,

PGDLL&LW, PGDCL, PGDHR]
INDUSTRIAL RELATIONS
 The term ‘Industrial Relations’ comprises two terms:
‘Industry’ and ‘Relations’.
 “Industry” refers to “any productive activity in which an individual (or a
group of individuals) is (are) engaged”.
 By “relations” we mean “the relationships that exist within the industry
between the employer and his workmen.”.
 The term industrial relations explains the relationship between
employees and management which stems directly or indirectly from the
union-employer relationship.
DEFINITIONS
 J.T. Dunlop defines industrial relations as “the complex interrelations
among managers, workers and agencies of the governments”.
 According to Dale Yoder “industrial relations is the process of
management dealing with one or more unions with a view to negotiate
and subsequently administer collective bargaining agreement or labour
contract”.
IMPORTANCE OF
INDUSTRIAL
RELATIONS
 UNINTERRUPTED
PRODUCTION
 The most important benefit of industrial relations is that this ensures
continuity of production. This means, continuous employment for all
from managers to workers.
 The resources are fully utilized, resulting in the maximum possible
production.
 There is an uninterrupted flow of income for all.
 The smooth running of the industry is of vital importance for several
other industries; other industries if the products are intermediaries or
inputs; to exporters if these are export goods; to consumers and workers
if these are goods of mass consumption.
 REDUCTION IN
INDUSTRIAL DISPUTES
 Good industrial relations reduce the industrial disputes. Disputes are
reflections of the failure of basic human urges or motivations to secure
adequate satisfaction or expression which are fully cured by good
industrial relations.
 Strikes, lockouts, go-slow tactics, gherao and grievances are some of the
reflections of industrial unrest which do not spring up in an atmosphere
of industrial peace.
 It helps promoting co-operation and increasing production
 HIGH MORALE
 Good industrial relations improve the morale of the employees.
Employees work with great zeal with the feeling in mind that the
interest of employer and employees is one and the same, i.e. to increase
production.
 Every worker feels that he is a co-owner of the gains of industry. The
employer in his turn must realize that the gains of industry are not for
him along but they should be shared equally and generously with his
workers.
 In other words, complete unity of thought and action is the main
achievement of industrial peace. It increases the place of workers in the
society and their ego is satisfied. It naturally affects production because
mighty co-operative efforts alone can produce great results.
 MENTAL REVOLUTION
 The main object of industrial relation is a complete mental revolution of
workers and employees.
 The industrial peace lies ultimately in a transformed outlook on the part
of both. It is the business of leadership in the ranks of workers,
employees and Government to work out a new relationship in
consonance with a spirit of true democracy.
 Both should think themselves as partners of the industry and the role of
workers in such a partnership should be recognized.
 On the other hand, workers must recognize employer’s authority. It will
naturally have impact on production because they recognize the interest
of each other.
 REDUCED WASTAGE
 Good industrial relations are maintained on the basis of cooperation and
recognition of each other. It will help increase production.
 Wastage of man, material and machines is reduced to the minimum and
thus national interest is protected.
 Thus, it is evident that good industrial relations are the basis of higher
production with minimum cost and higher profits. It also results in
increased efficiency of workers.
 New and new projects may be introduced for the welfare of the workers
and to promote the morale of the people at work.
 An economy organized for planned production and distribution, aiming
at the realization of social justice and welfare of the massage can
function effectively only in an atmosphere of industrial peace.
 If the twin objectives of rapid national development and increased social
justice are to be achieved, there must be a harmonious relationship
between management and labour.
APPROACHES TO
INDUSTRIAL
RELATIONS
 UNITARY APPROACH
 The unitary approach is based on the strong argument that there is only one
source of authority i.e., the management, which owns and controls the
dynamics of decision-making in issues relating to negotiation and bargaining.
 Under the unitary approach, industrial relations are grounded in mutual
cooperation, individual treatment, teamwork, and shared goals.
 Workplace conflict is seen as a temporary aberration, resulting from poor
management, from employees who do not mix well with the organizational
culture.
 Unions cooperate with the management and the management’s right to
manage is accepted because there is no ‘we-they’ feeling.
 The underlying assumption is that everyone benefits when the focus is on
common interest and the promotion of harmony. Conflict in the form of
strikes is not only regarded as necessary but destructive.
 PLURALISTIC APPROACH
 The pluralistic approach totally departs from the unitary approach and
assumes that the organization is composed of individuals who form
distinct groups with their own set of aims, objectives, leadership styles,
and value propositions.
 The organization is multi-structured and there will be continued tension
due to conflicts within and between the various sectional groups. In
contrast to the unitary approach, the pluralistic approach considers the
conflict between management and employees as rational and inevitable.
 The pluralistic approach perceives:

i. Organization as coalitions of competing interests, where the role of the

management is to mediate amongst the different interest groups.
ii. Trade unions as legitimate representatives of employee interests.
iii. Stability in industrial relations as the product of concessions and
compromises between management and unions.
 MARXIST APPROACH
 Also known as the ‘Radical Perspective’, the Marxist approach is based on the proposition
that the economic activities of production, manufacturing, and distribution are majorly
governed by the objective of profit. Marxists, like the pluralists, regard conflict between
employers and employees as inevitable. However, pluralists believe that the conflict is
inevitable in all organizations.
 Marxists see it as a product of the capitalist society. Adversarial relations in the workplace are
simple one aspect of class conflict. The Marxist approach, thus, focuses on the type of society
in which an organization functions.
 Conflict arises not only because of competing interests within the organization, but because of
the division within society between those who won or manage the means of production and
those who have only their labour to offer. Industrial conflict is, thus, seen as being
synonymous with political and social unrest.
 The Marxist approach argues that for social change to take place, class conflict is required.
Social change initiates strong reactions from the worker class and bridges the gap between the
economically settled owners of factors of production and the economically dependent worker
class. This approach views pluralism as unreal and considers industrial disputes and class
conflicts as inevitable for the circular functioning of an industry
 SYSTEMS APPROACH
 Prof. John T. Dunlop developed Systems Approach in “Industrial Relations Systems”
in 1958.
 Dunlop defines an industrial relations system in the following way – An industrial
relations system at any one time in its development is regarded as comprised of certain
actors, certain contexts, an ideology, which binds the industrial relations system
together, and a body of rules created to govern the actors at the workplace and work
community.
 There are three sets of independent variables – the ‘actors’, the ‘contexts’ and the
‘ideology’ of the system. The actors are –
(a) hierarchy of managers and their representatives in supervision,
(b) a hierarchy of workers (non-managerial) and any spokesmen, and
(c) specialised governmental agencies (and specialised private agencies created by the first
two actors) concerned with workers, enterprises, and their relationships.
 The contexts are the environment in which the actors are interacting with each other at
various levels and the ideology is their philosophy of industrial relations
 GANDHIAN APPROACH
 Gandhiji held definite views regarding the fixation and regulation of wages, organisation
and functions of trade unions, necessity and desirability of collective bargaining, use and
abuse of strikes, labour indiscipline, workers’ participation in management, conditions of
work and living, and duties of workers.
 He insisted on recognising each individual worker as a human being. He believed in
nonviolent communism, going so far as to say that “if communism comes without any
violence, it would be welcome.”
 Gandhiji realised that relations between labour and management can either be a powerful
stimulus to economic and social progress or an important factor in economic and social
stagnation.
 According to him, industrial peace was an essential condition not only for the growth and
development of the industry itself but also in a great measure, for the improvement in the
conditions of work and wages. At the same time, he not only endorsed the workers’ right
to adopt the method of collective bargaining but also actively supported it.
 He advocated voluntary arbitration and mutual settlement of disputes. He also pleaded for
perfect understanding between capital and labour, mutual respect, recognition of equality,
and strong labour organisation as the essential factors for happy and constructive
industrial relations. For him, means and ends are equally important.
 HUMAN RESOURCE
MANAGEMENT APPROACH
 The term, human resource management (HRM) has become increasingly used
in the literature of personnel/industrial relations.
 The term has been applied to a diverse range of management strategies and,
indeed, sometimes used simply as a more modern, and therefore more
acceptable, term for personnel or industrial relations management.
 Some of the components of human resource management are –
(a) human resource organisation; (b) human resource planning;
(c) human resource systems; (d) human resource development;
(e) human resource relationships; (f) human resource utilisation;
(g) human resource accounting; and (h) human resource audit.
 This approach emphasises individualism and the direct relationship between
management and its employees. Therefore, it questions the collective
regulation basis of traditional industrial relations.
COLLECTIVE
BARGAINING
 COLLECTIVE BARGAINING
 The term collective bargaining refers to the process of negotiation that
takes place between workers or labourers and their employers on the
terms of their contracts.
 In most instances, the labourers are represented by a trade or labour
union. This is usually done in order to achieve certain demands and
rights of the labourers, namely those pertaining to working hours,
salaries, working conditions, etc.
 This form of industrial dispute resolution has been revolutionary for
labour relations in the Indian industries, both private and public.
 This is because conflicts in the area of commerce and business are
inevitable and it is not practical to resolve all such disputes through
courts.
 Hence, collective bargaining has become a suitable alternative to
adjudicate industrial disputes
 DEFINITION
 According to Article 2 of the Collective Bargaining Convention, 1981
(No. 154) of the International Labour Organisation, “collective
bargaining extends to all negotiations which take place between an
employer, a group of employers or one or more employers’
organisations, on the one hand, and one or more workers’ organisations,
on the other, for
 (a) determining working conditions and terms of employment; and/or
 (b) regulating relations between employers and workers; and/or
 (c) regulating relations between employers or their organisations and workers
or workers’ organisations”.
 AIMS OF COLLECTIVE
BARGAINING
 Upholding industrial democracy
 Ensuring equality and justice for socially and economically backwards
groups
 Protecting the working class from exploitation
 Meeting the legitimate expectations of labourers regarding the work
they have undertaken
 ADVANTAGES OF
COLLECTIVE BARGAINING
 Being a part of a group helps employees to voice their demands and
negotiate better with their employers. It is harder for employers to
dismiss the demands of a unified large group of employees or a trade
union in comparison with individual employees.
 It helps to improve the workplace conditions for employees.
 It makes the rights and obligations of both employers and employees
clear.
 DISADVANTAGES OF
COLLECTIVE BARGAINING
 It is a long complicated process as the union of employees and the
employers go back and forth while negotiating. It is time-consuming
and requires both parties to take time off of their work.
 Another issue that stands as a hindrance to the effectiveness of this
process is the presence of multiple trade unions in India. Sometimes the
interunion rivalry gets in the way of negotiating for better working
conditions.
 Most trade unions are also backed by or associated with a political
party. Oftentimes, it is the decision of the party that influences the trade
union’s demands.
 There is no way to determine which union represents the employees.
INDIAN
STATUTES AND
CASE LAWS
RECOGNIZING
COLLECTIVE
BARGAINING
 INDUSTRIAL DISPUTES
ACT, 1947
 This Act was enacted for the purpose of governing the investigation and
settlement of industrial disputes. According to Section 18 of the Act,
any settlement other than a conciliation, which is arrived at through an
agreement by an employer and his employees shall be binding on them.
This essentially means that Section 18 recognises industrial dispute
settlement through collective bargaining.
 In the case of Karnal Leather Karamchari Sanghatan v. Liberty
Footwear Company (Regd.) and Ors. (1990), the Supreme Court laid
down that the Industrial Disputes Act, 1947 was enacted for the purpose
of securing social justice by means of collective bargaining. The court
further stated that arbitration comes within the purview of statutory
tribunals. The workers involved must be aware of what is presented
before the arbitrator and must be able to share their arguments and
claims before him. Even though it is the labour union that helps to
resolve the disputes, the labourers must be involved in the process and
suggest remedies.
 TRADE UNION ACT, 1926
 This Act deals with the registration, rights, liabilities and immunities of
a trade union. The most important function of a trade union is to
regulate the relationship between an employer or management and its
employees.
 In the case of D.N. Banerjee v. P.R. Mukherjee (1952), Justice Chandra
Shekhar Aiyer observed that due to the increased importance of capital
and labour in the modern-day world, they have organised themselves
into groups to settle disputes. This is based on the theory that unity is
strength and collective bargaining is a result of that.
 THE INDUSTRIAL
EMPLOYMENT (STANDING
ORDERS) ACT, 1946
 ‘Standing Order’ in this Act is defined in Section 2(g) as the rules
related to matters such as classification of workmen, attendance,
conditions of granting leaves, manner of intimation to workers about
work and wage-related details, etc. As per Section 3 of the Act, the
employer must first submit the draft of the standing order to the
Certifying Officer, and must also conform to the model set for the
standing order as far as possible. After that, the Officer forwards copies
of the draft to the trade union or to the workmen. If there is no trade
union for seeking objections, the officer must give both parties an
opportunity of being heard and then certify the standing order with
necessary modifications and send its copies to both parties. Here, it is
apparent that the certifying officer acts as the negotiator and the process
of framing a standing order involves both employer and employees.
This provision essentially employs the method of collective bargaining.
 THE CONSTITUTION OF
INDIA, 1950
 Several provisions enumerated in the Indian Constitution, particularly
the fundamental rights and the directive principles of state policy justify
the concept of collective bargaining. Firstly, Article 19 of the Indian
Constitution allows every Indian citizen to form an association, which
in turn covers the right to form a trade union as well. In Article 43 A,
the state is permitted to make laws that encourage workers to take part
in management.
STAGES OF
COLLECTIVE
BARGAINING
 FORMING A UNION
 As per Section 9A of the Trade Unions Act, 1926, the minimum number
of employees to constitute a trade union is seven. Though registration of
a union is not compulsory, it definitely comes with its advantages such
as providing adequate representation for workers, using funds for
specific purposes, immunity from civil suits, etc.
 MAKING A CHARTER OF
DEMANDS
 In this stage, either the union or the employer may initiate the
proceedings of collective bargaining. The trade union then drafts a
charter of demands through several discussions conducted among all of
its members.
 NEGOTIATION
 The negotiations begin with the submission of the charter of demands.
Generally, it is the union that formally presents proposals for changes in
the existing labour agreements in the initial meeting. Then, the
management gets the opportunity to present counter-proposals. This
keeps going on until they can form an agreement. When it becomes
impossible for them to reach an agreement, a third party may be
appointed as a mediator or an arbitrator.
 FORMING AN AGREEMENT
 Once a negotiation becomes successful, the management and the union
form a written agreement. This agreement is called a collective
bargaining agreement.
 STRIKES
 In case the negotiation process fails, the union may declare a strike. As
per Section 22 of the Industrial Disputes Act, public utility sector
employees must provide six weeks’ notice of a strike, and may strike
fourteen days after providing such notice. Neither the management nor
the union is permitted to take any industrial action while the conciliation
is pending, and not until seven days after the conciliation proceedings
conclude, or two months after the legal proceedings conclude.
 CONCILIATION
 The conciliation process begins when the conciliation officer receives a
notice of strike. There are two alternatives that can be taken in this step.
As per Section 4 of the Act, during the cooling-off period, the state
government may appoint a conciliation officer for investigating,
mediating and promoting settlement. As per Section 5 of the Act, the
second alternative is that the state government may appoint a Board of
Conciliation and it shall be composed of a chairman and either two or
four members. Strikes are not organised during the process of
conciliation as per Sections 22 and 23 of the Act. Section 20 of the Act
provides that this step ends with a settlement or a reference to an
industrial tribunal or labour court, and sometimes no settlement is
arrived at.
 ARBITRATION OR ADJUDICATION
BY INDUSTRIAL TRIBUNALS OR
LABOUR COURTS
 In case of failure of the conciliation process, the parties could go for
either a voluntary or compulsory arbitration, and the recommendations
of the arbitrator may be binding on the parties. Section 7A of the Act
provides for a labour court or industrial tribunal within a state to
adjudicate such disputes. Section 7B of the Act provides for the
constitution of national tribunals to resolve disputes involving questions
of national interest. The employer and the employees may refer the case
by a written agreement to a labour court, industrial tribunal or national
tribunal for adjudication or arbitration.
 COLLECTIVE BARGAINING
AGREEMENTS
 A collective bargaining agreement is essentially a legal agreement in
written form between an employer and a trade or labour union
representing the employees. It is the agreement that forms after the
process of negotiation between the employer and the union or the
workmen. It is an important stage in the process of collective bargaining
that the employer and the union reach when the negotiation becomes
successful. 
TYPES OF
COLLECTIVE
BARGAINING
AGREEMENTS
In India, there are mainly three types of collective bargaining
agreements.
 BIPARTITE OR VOLUNTARY
AGREEMENT
 Bipartite agreements are those agreements or settlements formed in
voluntary negotiations in the process of collective bargaining. As per
Section 18 of the Industrial Disputes Act, such agreements are binding
on the parties involved.
 SETTLEMENT
 A settlement commonly refers to an agreement of tripartite character as
a third party is involved in arriving at it. This is the agreement that is
arrived at by the employer and the employees with the help of a
conciliation officer. If during the process of conciliation, the conciliation
officer feels that there is a possibility of reaching a settlement, he
withdraws it himself. After that, the parties examine the terms of the
agreement and report back to the officer within a specified period.
 CONSENT AWARD
 When a dispute is pending before a compulsory adjudicatory authority,
the parties can still negotiate between themselves. The agreement that is
formed as a result of such a negotiation shall also be incorporated into
the authority’s award and it gains a binding force.
 ELEMENTS OF A COLLECTIVE
BARGAINING AGREEMENT
When trade unions and employers enter into collective bargaining agreements,
such agreements enumerate the various clauses that govern the relationship
between the employees represented by trade unions and employers. The following
are some of the clauses that can be found in a collective bargaining agreement:
 Duration of the settlement
 Settlement terms with respect to matters like wages, benefits, leaves, working
hours, rest hours, allowances, concessions, etc
 Conditions with respect to strikes
 Obligations of the employees
 Obligations of the management
 Penalties for non-compliance with the agreement
 Dispute resolution
ROLE OF TRADE
UNION
 HISTORY OF TRADE UNION
IN INDIA
 The first organized trade union in India was formed in the year 1918
and named as the “Madras Labour Union”. Trade unions were mainly
formed to maintain peace in the workplace and to support labourers
socially and economically. Many trade unions were formed after the
Trade Union Act of 1926 was passed in India. Researchers say trade
unions got stronger after the trade union movement, which is over 50
years old. The First World War was the main reason for the trade union
movement in India. This mainly focuses on job security, good working
conditions, regular wages, and many other benefits.
 HISTORY OF TRADE UNION
IN INDIA
 Trade unions show the unionism between labourers in an organization.
You can form a trade union under Article 19 (1) (c) of the Constitution
of India. The Ministry of Labour, Government of India Labour Bureau
collects data of trade unions every year. International labour
organizations (ILO) became responsible for the formation of trade
unions after 1919. ILO was formed in 1919 and India is a founding
member of ILO. Presently, ILO has 187 members. This article delves
into the types of Trade Unions in India, Major Trade Unions in India,
and the Roles of Trade Unions.
TYPES OF TRADE
UNIONS IN INDIA

Trade Unions in India are structured in three categories which are Craft
Union, Industrial Unions, and General Unions
 CRAFT-BASED UNION
 This is basically formed to safeguard the interest of labourers, especially
daily wage workers. They form a union to demand for regular wages,
interest in wages, profit, hike in wages, etc. This union gives bargaining
power to workers and the power of unionism. It is a weak union being
not very effective at all times but one can form it to fulfill their interests.
 INDUSTRIAL UNION
 It is formed by workers who are semi-skilled, highly skilled, and
manual labourers in a single Industry. This means it includes workers
from every level which is plant level, industry level, and regional level.
This union provides aid for adapting innovative technology, better-
negotiating salaries, better rules and regulations, etc.
 GENERAL UNION
 These unions are formed by other unions such as craft unions and
industrial unions. If there is any sort of discontentment with any policies
of the government, the general union has more power to advocate and
negotiate for the problems. Its aim is to demand good working
conditions, timely wages, and interest in wages, and sometimes calls a
nationwide strike if there is any injustice.
MAJOR TRADE
UNIONS IN INDIA
 AITUC (ALL INDIA TRADE
UNION CONGRESS):
 AITUC, the oldest trade union federation of India was established on 31
October 1920. The main idea of AITUC was to choose the members or
delegates of ILO. The first President of AITUC was Lala Lajpat Rai
associated with The Communist Party of India.
 One of the founding members of the World Federation of Trade Unions
is AITUC. During the First World War two sects of people existed, one
supporting the war and the other being against the war. This led to the
split of AITUC and a new organization was formed by the name of
INTUC.
 INTUC (INDIAN NATIONAL
TRADE UNION CONGRESS)
 INTUC was formed on 3 May 1947. INTUC is the largest trade union in
India. In 2013, it had 33.95 million members in the organization. The
first president of INTUC was Dr. Suresh Chandra Banerjee. The main
purpose of INTUC was to form a society where individuals can grow
and fulfill their economic as well as social needs without any hindrance.
 HMS (HIND MAZDOOR
SABHA)
 There were people who neither supported AITUC nor INTUC. They
didn’t want to be a part of both organizations. They formed another
organization which was named as HMS(Hind Mazdoor Sabha). It was
started in the year 1951 in Calcutta. The main aim of this organization
was the socialist principle.
 UTUC (UNITED TRADE
UNION CONGRESS)
 It was formed on 1 May 1949 in Calcutta. K. T. Shah was the founding
president of UTUC. In 2002, the total number of members was 383,946.
It is considered as a Central trade union organization in India. It was
organized for different left-wing factions as it is an independent trade
union organization in India.
ROLE OF TRADE
UNIONS IN INDIA
 ROLE OF TRADE UNIONS IN
INDIA
1. Trade unions ensure that the environment is harmonious. Workers
aren’t getting any kind of problems related to hygiene, drinking
water, healthcare facilities, safety, electricity, etc.
2. Trade unions protect the rights of workers so that no worker is a
victim of tyrannical behaviour by the management like random
transfer or suspension of workers.
3. Collective bargaining, adjudication and wage boards, and conciliation
are some determinants to decide the salaries and wages of workers in
the organization. These are followed in a systematic way so that no
chaos arises in the organization.
 ROLE OF TRADE UNIONS IN
INDIA
4. If any industrial dispute occurs in the organization, the trade union
takes responsibility to solve it. It always protects the interest of both
workers as well as employers. Trade union negotiates with
organization to resolve the conflicts between worker and employer
and bring peace to the organization.
5. Trade union looks up to the welfare of workers, especially women
and children. If someone is arbitrarily suspended or transferred, the
trade union speaks up for them and fights for them.
6. There are times when workers feel alone, so the labour is given a
chance to go to a platform where he/she can attain their social goals.
 ROLE OF TRADE UNIONS IN
INDIA
7. Collective bargaining means resolving the clashes between
employees and employers by managing negotiations between them. It
is an agreement between workers and employers when something
goes wrong between them. If the agreement is breached, it will be
considered an illegal trade practice.
8. They provide medical help to the workmen and secure their job or
protect the hike in wages non-violently.
9. There are many unorganized sectors in rural areas which are not
effectively run by authorities. To reform them into organized ones,
trade unions do a lot to let people work on their capabilities and come
above the poverty line. They also plan programs for their betterment.
 ROLE OF TRADE UNIONS IN
INDIA
10. Trade unions believe in a balanced growth approach. In which
peoples’ welfare is also considered other than the organisation’s
profit. This social responsibility also comes under trade unions.
 ROLE OF TRADE UNIONS IN
INDIA
Education has been a problem ever since the labour movement started.
They are not literate which creates problems for them. Trade unions try to
enroll them in several programs and schemes to enhance their skills and
knowledge.
1. During a lockout or strike or in medical need, Trade unions also help
in providing financial and non-financial aid to workers.
2. Trade unions play an imperative role in increasing the wages of
workers. Bargaining, Utilization of Power, and Stopping the supply
of labour are some of the methods used by Trade unions in increasing
the wages of the workers.
3. Trade unions provide job security to workers through peaceful
measures. They also protect workers from hikes in wages.
THE TRADE
UNIONS ACT,
1926
 SECTION 1. SHORT TITLE,
EXTENT AND
COMMENCEMENT
(1) This Act may be called the Trade Unions Act, 1926.
4[(2) It extends to the whole of India.]
(3) It shall come into force on such date as the Central Government may,
by notification in the Official Gazette, appoint.
 SECTION 2. DEFINITIONS.
In this Act, 1["the appropriate Government" means, in relation to Trade Unions whose objects are
not confined to one State, the Central Government, and in relation to other Trade Unions, the
State Government, and] unless there is anything repugnant in the subject or context,--
(e) "registered Trade Union" means a Trade Union registered under this Act;
(g) "trade dispute" means any dispute between employers and workmen or between workmen and
workmen, or between employers and employers which is connected with the employment or non-
employment, or the terms of employment or the conditions of labour, of any person, and
"workmen" means all persons employed in trade or industry whether or not in the employment of
the employer with whom the trade dispute arises; and
(h) "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, and includes any federation of two or more Trade Unions:
Provided that this Act shall not affect--
(i) any agreement between partners as to their own business;
(ii) any agreement between an employer and those employed by him as to such employment; or
(iii) any agreement in consideration of the sale of the goodwill of a business or of instruction in
any profession, trade or handicraft.
 SECTION 4. MODE OF
REGISTRATION
 [(1)] Any seven or more members of a Trade Union may, by subscribing their names to
the rules of the Trade Union and by otherwise complying with the provisions of this Act
with respect to registration, apply for registration of the Trade Union under this Act.
 [Provided that no Trade Union of workmen shall be registered unless at least ten per
cent. or one hundred of the workmen, whichever is less, engaged or employed in the
establishment or industry with which it is connected are the members of such Trade
Union on the date of making of an application for registration:
 Provided further that no Trade Union of workmen shall be registered unless it has on the
date of making application not less than seven persons as its members, who are
workmen engaged or employed in the establishment or industry with which it is
connected.]
 [(2) Where an application has been made under sub-section (1) for the registration of a
Trade Union, such application shall not be deemed to have become invalid merely by
reason of the fact that, at any time after the date of the application, but before the
registration of the Trade Union, some of the applicants, but not exceeding half of the
total number of persons who made the application, have ceased to be members of the
Trade Union or have given notice in writing to the Registrar dissociating themselves
from the applications.]
 SECTION 5. APPLICATION
FOR REGISTRATION
(1) Every 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 and a statement of the
following particular's, namely:--
(a) the names, occupations and addresses of the members making the application;
[(aa) in the case of a Trade Union of workmen, the names, occupations and addresses
of the place of work of the members of the Trade Union making the application;]
(b) the name of the Trade Union and the address of its head office; and
(c) the titles, names, ages, addresses and occupations of the [office-bearers] of the
Trade Union.
(2) Where a Trade Union has been in existence for more than one year before the making
of an application for its registration, there shall be delivered to the Registrar, together
with the application, a general statement of the assets and liabilities of the Trade Uni on
prepared in such form and containing such particulars as may be prescribed.
 SECTION 6. PROVISIONS TO BE
CONTAINED IN THE RULES OF
A TRADE UNION
A Trade Union shall not be entitled to registration under this Act, unless
the executive thereof is constituted in accordance with the provisions of
this Act, and the rules thereof provide for the following matters, namely:--
(a) the name of the Trade Union;
(b) the whole of the objects for which the Trade Union has been
established;
(c) the whole of the purposes for which the general funds of the Trade
Union shall be applicable, all of which purposes shall be purposes to
which such funds are lawfully applicable under this Act;
(d) the maintenance of a list of the members of the Trade Union
and adequate facilities for the inspection thereof by the 1[office-
bearers] and members of the Trade Union;
 SECTION 6. PROVISIONS TO BE
CONTAINED IN THE RULES OF
A TRADE UNION
(e) the admission of ordinary members who shall be persons actually engaged
or employed in an industry with which the Trade Union is connected, and also
the admission of the number of honorary or temporary members as 1[office-
bearers] required under section 22 to form the executive of the Trade Union;
[(ee) the payment of a minimum subscription by members of the Trade Union
which shall not be less than--
(i) one rupee per annum for rural workers;
(ii) three rupees per annum for workers in other unorganised sectors; and
(iii) twelve rupees per annum for workers in any other case;]
(f) the conditions under which any member shall be entitled to any bene fit
assured by the rules and under which any fine or forfeiture may be imposed on
the members;
 SECTION 6. PROVISIONS TO BE
CONTAINED IN THE RULES OF
A TRADE UNION
(g) the manner in which the rules shall be amended, varied or rescinded;
(h) the manner in which the members of the executive and the other
1[office-bearers] of the Trade Union shall be 3[elected] and removed;
[(hh) the duration of period being not more than three years, for which the
members of the executive and other office-bearers of the Trade Union
shall be elected;]
(i) the safe custody of the funds of the Trade Union, an annual audit, in
such manner as may be prescribed, of the accounts thereof, and adequate
facilities for the inspection of the account books by the 1[office-bearers]
and members of the Trade Union; and
(j) the manner in which the Trade Union may be dissolved.
 SECTION 7. POWER TO CALL FOR
FURTHER PARTICULARS AND TO
REQUIRE ALTERATION OF NAME
(1) The Registrar may call for further information for the purpose of
satisfying himself that any application complies with the provisions of
section 5, or that the Trade Union is entitled to registration under section
6, and may refuse to register the Trade Union until such information is
supplied.
(2) If the name under which a Trade Union is proposed to be registered is
identical with that by which any other existing Trade Union has been
registered or, in the opinion of the Registrar, so nearly resembles such
name as to be likely to deceive the public or the members of either Trade
Union, the Registrar shall require the persons applying for registration to
alter the name of the Trade Union stated in the application, and shall
refuse to register the Union until such alteration has been made.
 SECTION 9A. MINIMUM
REQUIREMENT ABOUT
MEMBERSHIP OF A TRADE UNION
A registered Trade Union of workmen shall at all times continue to have
not less than ten per cent. or one hundred of the workmen, whichever is
less, subject to a minimum of seven, engaged or employed in an
establishment or industry with which it is connected, as its members
 SECTION 10. CANCELLATION
OF REGISTRATION
A certificate of registration of a Trade Union may be withdrawn or cancelled by the
Registrar--
(a) on the application of the Trade Union to be verified in such manner as may be
prescribed, or
(b) if the Registrar is satisfied that the certificate has been obtained by fraud or mistake,
or that the Trade Union has ceased to exist or has wilfully and after notice from the
Registrar contravened any provision of this Act or allowed any rule to continue in force
which is inconsistent with any such provision, or has rescinded any rule providing for any
matter provision for which is required by section 6:
[(c) if the Registrar is satisfied that a registered Trade Union of workmen ceases to have
the requisite number of members:]
Provided that not less than two 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 before the certificate is withdrawn or cancelled otherwise
than on the application of the Trade Union.
 SECTION 11. APPEAL.
(1) Any person aggrieved by any refusal of the Registrar to register a Trade Union or by
the withdrawal or cancellation of a certificate of registration may, within such period as
may be prescribed, appeal,--
(a) where the head office of the Trade Union is situated within the limits of a
Presidency-town, to the High Court, or
[(aa) where the head office is situated in an area, falling within the jurisdiction of a
Labour Court or an Industrial Tribunal, to that Court or Tribunal, as the case may be;]
(b) where the head office is situated in any other area, to such Court, not inferior to
the Court of an additional or assistant Judge of a principal Civil Court of original
jurisdiction, as the [appropriate Government] may appoint in this behalf for that area.
(2) 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 under the provisions of
section 9 or setting aside the order for withdrawal or cancellation of the certificate, as
the case may be, and the Registrar shall comply with such order.
 SECTION 11. APPEAL.
(3) For the purpose of an appeal under sub-section (1) an appellate Court
shall, so far as may be, follow the same procedure and have the same
powers as it follows and has when trying a suit under the Code of Civil
Procedure, 1908 (5 of 1908), and may direct by whom the whole or any
part of the costs of the appeal shall be paid, and such costs shall be
recovered as if they had been awarded in a suit under the said Code.
(4) In the event of the dismissal of an appeal by any Court appointed
under clause (b) of sub-section (1), the person aggrieved shall have a right
of appeal to the High Court, and the High Court shall, for the purpose, of
such appeal, have all the powers of an appellate Court under sub-sections
(2) and (3), and the provisions of those sub-sections shall apply
accordingly.]
 SECTION 12. REGISTERED
OFFICE
All communications and notices to a 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 fourteen days of such change to the
Registrar in writing, and the changed address shall be recorded in the
register referred to in section 8.
 SECTION 15. OBJECTS ON
WHICH GENERAL FUNDS MAY
BE SPENT
The general funds of a registered Trade Union shall not be spent on any
other objects than the following, namely:--
(a) the payment of salaries, allowances and expenses to [office-bearers] of
the Trade Union;
(b) the payment of expenses for the administration of the Trade Union,
including audit of the accounts of the general funds of the Trade Union;
(c) the prosecution or defence of any legal proceeding to which the Trade
Union or any member thereof is a party, when such prosecution or
defence is undertaken for the purpose of securing or protecting any rights
of the Trade Union as such or any rights arising out of the relations of any
member with his employer or with a person whom the member employs;
 SECTION 15. OBJECTS ON
WHICH GENERAL FUNDS MAY
BE SPENT
(d) the conduct of trade disputes on behalf of the Trade Union or any
member thereof;
(e) the compensation of members for loss arising out of trade disputes;
(f) allowances to members or their dependant on account of death, old
age, sickness, accidents or unemployment of such members;
(g) the issue of, or the undertaking of liability under, policies of assurance
on the lives of members, or under policies insuring members against
sickness, accident or unemployment;
(h) 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;
 SECTION 15. OBJECTS ON
WHICH GENERAL FUNDS MAY
BE SPENT
(i) the upkeep of a periodical published mainly for the purpose of
discussing questions affecting employers or workmen as such;
(j) the payment, in furtherance of any of the objects on which the general
funds of the Trade Union may be spent, of contributions to any cause
intended to benefit workmen in general, provided that the expenditure in
respect of such contributions in any financial year shall not at any time
during that year be in excess of one-fourth of the combined total of the
gross income which has up to that time accrued to the general funds of the
Trade Union during that year and of the balance at the credit of those
funds at the commencement of that year; and
(k) subject to any conditions contained in the notification, any other
object notified by the [appropriate Government] in the Official Gazette.
 SECTION 16. CONSTITUTION OF
A SEPARATE FUND FOR
POLITICAL PURPOSES
(1) A registered Trade Union may constitute a separate fund, from
contributions separately levied for or made to that fund, from which
payments may be made, for the promotion of the civic and political interests
of its members, in furtherance of any of the objects specified in sub -section
(2).
(2) The objects referred to in sub-section (1) are:--
(a) the payment of any expenses incurred, either directly or indirectly, by a
candidate or prospective candidate for election as a member of any
legislative body constituted under 1[the Constitution] or of any local
authority, before, during, or after the election in connection with his
candidature or election; or
(b) the holding of any meeting or the distribution of any literature or
documents in support of any such candidate or prospective candidate; or
(c) the maintenance of any person who is a member of any legislative body
constituted under 1[the Constitution] or of any local authority; or
 SECTION 16. CONSTITUTION OF
A SEPARATE FUND FOR
POLITICAL PURPOSES
(d) the registration of electors or the selection of a candidate for any
legislative body constituted under 1[the Constitution] or for any local
authority; or
(e) the holding of political meetings of any kind, or the distribution of
political literature or political documents of any kind.
[(2A) In its application to the State of Jammu and Kashmir, references in sub-
section (2) to any legislative body constituted under the Constitution shall be
construed as including references to the Legislature of that State.]
(3) No member shall be compelled to contribute to the fund constituted under
sub-section (1); and a member who does not contribute to the said fund shall
not be excluded from any benefits of the Trade Union, or placed in any
respect either directly or indirectly under any disability or at any
disadvantage as compared with other members of the Trade Union (except in
relation to the control or management of the said fund) by reason of his not
contributing to the said fund; and contribution to the said fund shall not be
made a condition for Admission to the Trade Union.
 SECTION 17. CRIMINAL
CONSPIRACY IN TRADE
DISPUTES.
No [office-bearer] or member of a registered Trade Union shall be liable
to punishment under sub-section (2) of section 120B of the Indian Penal
Code (45 of 1860), in respect of any agreement made between the
members for the purpose of furthering any such object of the Trade Union
as is specified in section 15, unless the agreement is an agreement to
commit an offence.
 SECTION 18. IMMUNITY FROM
CIVIL SUIT IN CERTAIN CASES
(1) No suit or other legal proceeding shall be maintainable in any Civil
Court against any registered Trade Union or any [office-bearer] or
member thereof in respect of any act done in contemplation or furtherance
of a trade dispute to which a member of the Trade Union is a party on the
ground only that such act induces some other person to break a contract
of employment, or that it is in interference with the trade, business or
employment of some other person or with the right of some other person
to dispose of his capital or of his labour as he wills.
(2) A registered Trade Union shall not be liable in any suit or other legal
proceeding in any Civil Court in respect of any tortious act done in
contemplation or furtherance of a trade dispute by an agent of the Trade
Union if it is proved that such person acted without the knowledge of, or
contrary to express instructions given by, the executive of the Trade
Union.
 SECTION 18. IMMUNITY FROM
CIVIL SUIT IN CERTAIN CASES
(1) No suit or other legal proceeding shall be maintainable in any Civil
Court against any registered Trade Union or any [office-bearer] or
member thereof in respect of any act done in contemplation or furtherance
of a trade dispute to which a member of the Trade Union is a party on the
ground only that such act induces some other person to break a contract
of employment, or that it is in interference with the trade, business or
employment of some other person or with the right of some other person
to dispose of his capital or of his labour as he wills.
(2) A registered Trade Union shall not be liable in any suit or other legal
proceeding in any Civil Court in respect of any tortious act done in
contemplation or furtherance of a trade dispute by an agent of the Trade
Union if it is proved that such person acted without the knowledge of, or
contrary to express instructions given by, the executive of the Trade
Union.