Q. What are the Rights and Liabilities of Registered Trade Unions?

Liabilities of a registered Trade Union

A registered trade union must follow the provisions of the Trade Unions Act 1926. In particular,
the following are some restrictions in a registered trade union:
A Trade Union cannot spend the funds on anything the office bearers want. It can spend funds
only on the activities specified in Section 15.
These include:
 Salaries of the office bearers.

 Expenses required for the administration of the trade union

 Compensation to workers due to loss arise of any trade dispute.

 Welfare activities of the workers including housing, clothing, or any such activity.

 benefits to the workers or their dependents in the case of unemployment, disability, or death.

 Publishing material for creating awareness in the workers.

 Legal expenses required for defending or bringing a suit.

 Education of workers or their dependents.

 expenses for medical treatment of workers.

 taking insurance policies for workers.

Mario Raposo vs H M Bhandarkar and others 1994 - Office bearers of a trade union invested
the money from general fund into shares of UTI. This was held invalid because it is a speculative
investment.
A trade union cannot force members to subscribe to political fund under section 16.
Under section 20 a trade union must make available all its record books of accounts and list of
membership for inspection upon request of any member or his representative.
Section 21 allows minors more than 15 yrs of age to be members of a trade union. However,
such minors cannot hold office.
Under section 21-A, a trade union cannot appoint a person who has been convicted of a crime
involving moral turpitude and has been imprisoned for 6 months or more within last 5 years.
As per section 22, at least half of the office bearers of a trade union of workers of unorganized
sector must be engaged or employed in an industry to which the trade union is connected. Also,
while a union has a right to remove any office bearer, this power must be used judiciously and
rules of natural justice must be followed.

Under section 28, a general statement, audited in a prescribed manner, of all income and
expenses must be sent to the registrar every year.

Rights and Privileges of a registered Trade Union

As per section 13, upon registration, a trade union becomes a legal entity and as a consequence,
it gets perpetual succession and a corporate seal, it can acquire and hold movable and immovable
property, contract through agents, and can sue and get sued.
Under section 15 a registered trade union has a right to establish a general fund.
Under section 16, a registered trade union has a right to establish a political fund. Subscription to
this fund is not necessary for a member.
Under section 17, 18, and 19 a registered trade union gets immunity in certain criminal, civil, and
contractual proceedings.
Under section 24, trade unions have the right to amalgamate.
Under section 28-F, the executive of a registered trade union has a right to negotiate with the
employer the matters of employment or non-employment or the terms of employment or the
condition of labor of all or any of the members of the trade union and the employer shall receive
and send replies to letters and grant interviews to such body regarding such matters. It further
provides that the executive is entitled to post notices of the trade union meant for its members at
any premises where they are employed and that the employer shall provide reasonable facilities
for that.