The Trade Unions Act, 1926

.
 Introduction

• Until the beginning of 20th century, trade union activities were

not considered lawful in most of the countries of the world. In
India also, trade unions were considered as unlawful
associations.
• In 1920, the Madras High Court in a suit field against the
officials of the Madras Textile Labor Union by Binny & Co.
granted an injunction restraining the union officials from
influencing the workmen to break their contracts with the
employers by refusing to return to work.
• In order to protect the trade union activity for their bonafide
trade unions activities, The Indian Trade Union Act, 1926 was
enacted on the pattern of English Law. It came into force with
effect from 1st June 1927. The Act was embedded in 1929,
1942, 1951, 1960, 1964, 1970 and 1974.
 Broad Features of the Act
• 1. It provides for the registration of trade unions with the Registrar
of the Trade Unions. It empowers the Registrar to call for further
particulars and to require alteration of names and issue or cancel the
certificate of registration.
• 2. It provides that every registered trade union shall be a body
corporate and shall have perpetual succession and a common seal.
• 3. It lays down:
• The rights and liabilities of registered trade unions
• objects on which general funds of trade unions may be spent
• 4. It provides that certain Acts shall not apply to registered trade
unions, includes:
• The Societies Registration Act, 1860
• The Cooperative Societies Act, 1912
• The Companies Act, 1956
 DEFINITIONS :

• Executive Sec 2a- executive by whatever name called , to which

the management of affairs of a Trade Union is entrusted

• Office Bearer Sec 2b- office bearer includes any member of the
executive thereof , but does not include an auditor.

• Registered Office Sec 2 d registered office means that office of

Trade Union which is registered under the Act as the head office.
• Registered Trade Union Sec 2 e Trade Union registered under
the act.

• Registrar Sec 2 f Registrar of Trade Unions appointed by the

appropriate Government under Sec 3, and includes any
Additional or Deputy Registrar of Trade Unions.

• Trade Dispute Sec 2 g Trade dispute means any dispute between

employers and workmen, or workmen and workmen , or
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.

• WORKMEN SEC 2 g “workmen” means all persons employed

in trade or industry whether or not in the employment of the
employer with whom trade dispute arises.
 .
Trade union sec 2 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 2 or more trade unions.
 REGISTRATION

Mode of Registration Sec 4 :

• Any 7 or more members of 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 no trade union shall be registered unless at least 10 % or 100
of the workmen , which ever 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 application for
registration.
• Not invalid at any time after date of application but before
registration some of applicants (not exceeding half of the total) have
ceased to be members of Trade Union or given notice to registrar
disassociating themselves from application.
Application for registration Sec 5

• Send application to the Registrar, with

• Copy of Rules of trade union
Along with Statement of :
• Names , occupation & addresses of members making application
• Name of trade union , address of head office
• Titles, names, ages , addresses & occupation of office bearers
• If TU is in existence for more than one year statement of assets ,
liabilities of Trade union.
 PROVISION TO BE CONTAINED IN RULES, SEC 6
• Name of trade union
• Whole objects for trade union has been established
• Whole purpose for which general funds shall be applicable
• Maintenance of a list of members and adequate facilities for
inspection thereof by office bearers or members.
• Admission of members who shall be persons actually engaged or
employed in an industry with which trade union is connected &
admission of number of honorary members or temporary members
as office bearers.
• Payment of subscription by members which shall not be less than 25 paisa
per month per member
• amendment 2001 not be less than-
• one rupee per annum for rural workers;
• three rupees per annum for workers in other unorganized sectors; and
• twelve rupees per annum for workers in any other case)
• Condition under which members shall be entitled to benefit , fine ,
forfeiture
• Manner in which rules shall be amended, varied
• Manner in which members shall be appointed (elected) or removed
• Safe custody of funds , annual audit of annual accounts , inspection of
accounts by office bearers & members
• Manner in which Trade Union may be dissolved
 Powers of Registrar Sec 7

Power to require Alteration of Name Sec 7(2) :

• If proposed name is identical or too closely
resembles with the name of existing Trade Union ,
Registrar can refuse registration unless the name is
altered.
 Powers of Registrar
• 1. Power to call for further particulars[Sec.7(1)]
• 2. Power to require Alteration of Name [Sec.7(2)]
• 3. Registration (Sec 8)
• 4. Certificate of Registration (Sec. 8)
• Legal Status of a Registered Union:
• i) It becomes a body corporate( Sec. 13)
• ii) It gets perpetual succession and common seal
• Iii) It can acquire and hold both movable and immovable
property.
• Iv) It can enter into contracts with others.
 Privileges of Registered Trade Union
• 1. Immunity from Criminal Prosecution[ Sec.17]
• 2. Immunity from Civil Suit(Sec.18)
• 3. Immunity from Tortious Liability
• 4. Enforceability of Agreements(Sec.19)
• 5 Rights to Inspect Book of Trade Union(Sec.20)
• 6. Rights of Minor to Membership of Trade
Unions(Sec.21)
 Funds of Trade Unions

• i) the payments of salaries, allowances and expenses to office-

bearers of the trade unions
• ii) the payment of expenses for the administration of the trade
unions, including audit of the accounts of the general funds of
the trade unions
• iii)the prosecution or defense of any legal proceeding to which
the trade union or any member thereof is a party, when such
prosecution of defense is undertaken
• iv) the conduct of trade disputes on behalf of the trade unions
or any member thereof;
• v) the compensation of members for loss arising out of trade
disputes
• vi)allowances to members for loss arising out of trade
disputes.
Registration Sec 8
• If registrar satisfied , it shall register
• By entering name & particulars in a register

Certification of Registration Sec 9

• Registrar shall issue a certificate
• Conclusive evidence of registration
• valid until cancelled
Cancellation of Certificate Sec 10
• On application of TU
• If registrar satisfied that certificate is obtained by Fraud or
mistake
• TU ceased to exist
• TU willfully contravened any provision
• Not less than 2 months notice
 .
Change of Name Sec 23
• Any registered TU, with the consent of not less than 2/3 rd of the total of its
members, and
• Subject to the provisions of Sec 25 may change the name.
Amalgamation of Trade Unions Sec 24
• 2 or more TU may become amalgamated together in 1 trade union
• With or without dissolution or division of the funds, also
• The votes of atleast one half of the members of each and every TU should
be recorded,
• Atleast 60% of the votes are in favour of the proposal.
Notice of change of name or amalgamation Sec 25
• Notice in writing,
• incase of change of name signed by secretary & 7 members of
Trade Union,
• incase of amalgamation by secretary & 7 members of each &
every Trade Union ,
• shall be sent to registrar
• where head office of amalgamated TU is situated
• If in a different state , to registrar of such state.
 Privileges of a registered Trade Union

Immunity from Criminal Prosecution Sec17

• No office bearer/ member shall be liable to punishment
under Sec 120B(2) of Indian Penal Code 1860
• Unless it is to commit an offence
 Case : R.S. RUIKER Vs. EMPEROR

• Members of Nagpur Textile trade Union went on strike to

press their demands
• President of Union made speeches & instigated workers for
picketing of the mill
• Brought his wife, instructions to beat with slippers anyone
who interfered with her in the picketing process
• Prosecuted on charges instigating , picketing& abatement of
picketing by his wife
 Case : NATIONAL LABOUR RELATIONS BOARD V
FANSTEEL METALLURGICAL

• Workers went on sit-down strike

• Occupied 2 key buildings of company
• Resulting in stoppage of work
• Police vacate them forcibly
• Workers became violent
• Workers pleaded immunity from criminal action
• Workers not entitled to immunity
• It was held that though the employees had a right to strike , they have
no license to commit acts of violence or seize plant or building.
 Immunity from civil proceedings Sec 18
• No suit against any registered trade union or any office
bearer or members
• In respect of any act done in furtherance of a trade dispute
• To which a member of trade union is a party
• Induces some other person to break a contract of
employment
• Interference with trade
 Case : CROFTER HARRIS TWEED CO Vs. Vietch

• Union of dock workers demanded higher wages from mill owners

• Mill owners that they cannot pay due to cut throat competition from crofters
who wove yarn imported from nearby island
• Union asked its members not to handle yarn
• Injured trade of many producers who imported yarn
• Held officials were not liable , because even if there was conspiracy between
union and mill owners , the real purpose was to benefit the members of the
union
 Funds of the Trade Union
General Funds Sec 15
• Payment of salaries, allowances, expenses to office to office bearers
• Administration of TU including audit expenses
• Prosecution or defense of any legal proceeding to which TU or any member
is a party
• Compensation to members for loss due to trade dispute
• Allowance to members on account of death , sickness, accident or
unemployment of such members
• upkeep of periodical
• Provision of education , social, religious benefits for members
• Any other object
Funds for Political Purpose Sec 16
• Used for promotion of civic & political interest of members
• No member shall be compelled to contribute and member
cannot be excluded from benefits
• No condition for compulsory contribution for admission to
membership
Objects of the Funds for Political Purpose

• Payment of expense for election as MLA or local

• Holding any meeting or distribution of literature/
documents
• Maintenance of any person who is member of legislative
body
• Registration of electors
• Holding of political meetings
 PENALTIES
• SEC 31
• Failure to submit returns
• Default
• Every office bearer
• Every member of executive shall be punishable with a fine up to
rupees 5
• Incase of continuing default additional fine up to rs 5 for each week
• Provided aggregate fine shall not exceed rs 50
 FORMS
• Application for registration (section 5) filed in Form A
• Registration by the Registrar ( section 8) Register
maintained in Form B
• Certificate of registration ( Section 9) Issued in Form C