RIGHTS AND LIABILITIES OF REGISTERED TRADE

UNIONS
Section 15  Objects on which general funds may be spent
• Payment of salaries, allowances and expenses of the office bearers.
• Expenses required for the administration of the Trade Union.
• Compensation to workers for loss arising out of trade disputes.
• Allowances to members or their nominees on account of death, sickness,
old age, accidents or unemployment of such members.
• Publishing material to create awareness among workers.
• Legal expenses required for defending or bringing a suit.
• Taking insurance policies for workers.
Section 16  Constitution of a separate fund for political
purposes.
• Expenses related to elections, distribution of literature or documents,
registration of the electors or holding of political meetings.
Section 17  Criminal conspiracy in trade disputes
• Criminal conspiracy is an agreement of 2 or more persons to do an unlawful act or to
do a lawful act by unlawful means.
• This immunity is available only with respect to legal agreements created by the
members for the furtherance of valid objects of trade union.
• The immunity cannot be claimed for an act that is an offence.
Section 18  Immunity from civil suit in certain areas
• No suit or legal proceeding is maintainable in any civil court against the registered
trade union if –
a. Act induces other person to break a contract of employment.
b. Act interferes with the trade, business or employment of some other person.
Section 19  Enforceability of agreements
• In India , an agreement in restraint of trade is void as per Sec 25 of Indian Contract
Act.
• However , such agreement between trade union members is neither void nor
voidable.
• This right is only to the registered trade unions.
• Unregistered trade unions must follow principles of general contract law.
Section 20 Right to inspect books of trade unions
• A trade union must make available all of its records of books of accounts and
list of membership for inspection upon request by any member.
• It confers right of inspection but not right to take copies of the book or list.
Section 21  Rights of minors to membership of Trade Unions-
• Allows minors more than the age of 15 years to be a member of the trade
union. However , such minors cannot hold office.
Section 21 (A)  A Disqualifications of office-bearers of Trade Unions
• A trade union cannot appoint a person who has –
a. Not attained the age of 18 years
b. Convicted a crime and sentenced to imprisonment unless a period of 5 years
has elapsed since his release.
Section 22  Proportion of office-bearers to be connected with the
industry
• At least half of the office bearers of a trade union must be engaged or
employed in an industry to which the trade union is connected.
• Union has the right to remove any office bearer judiciously.
Section 23  Change of name
• Any registered trade union may change its name with the consent of not
less than two thirds of the total number of its members and provisions of
section 25.
Section 24  Amalgamation of Trade Unions-
• Two or more registered trade unions may amalgamate into one trade
union with or without dissolution or diversion of funds.
• Votes of atleast one half of the members of each trade union are recorded
and atleast 60% of votes of each trade union must be in favor of the
proposal.
Section 25  Notice to registrar for change of name
• Written notice of changing the name signed by the secretary and by 7
members of the trade union is sent to the Registrar.
• If proposed name is identical, the registrar may refuse to change the
name.
• If the registrar is satisfied, then he may grant request.
Section 26  Effects of change of name and of amalgamation
• The change in the name of a registered trade union shall not affect –
a. Any rights or obligations of the trade union.
b. Any legal proceedings commenced with the former name may continue or commence
with the new name.
Section 27  Dissolution
• When a registered trade union is dissolved, notice for dissolution signed by 7 members
and by the secretary is sent to the registrar within 14 days of the dissolution.
• If registrar is satisfied, then he registers the dissolution.
Section 28  Returns
• Return must be sent annually to the registrar and must include –
a. General statement
b. Audit statement in prescribed manner.
c. All receipts and expenditure of every trade union.
d. Assets and liabilities of the trade union existing as on 31st December.
e. A copy of every alteration made in the rules of the registered trade union shall be sent
to the registrar within 15 days of making the alteration.
 Chapter 4
• - Pooja
• Power to make regulations-The appropriate Government may
make regulations, for the purpose of carrying into effect, the
provisions of this Act
(a) the manner in which Trade Unions and the rules of Trade
Unions shall be registered and the fees payable on registration;
(b) the transfer of registration in the case of any registered Trade
Union which has changed its head office from one State to
another;
(c) the manner in which, and the qualifications of persons by
whom, the accounts of registered Trade Unions or of any class of
such unions shall be audited;
(d) the conditions subject to which inspection of documents kept
by Registrars shall be allowed and the fees which shall be
chargeable in respect of such inspections, and
(e) any matter which is to be or may be prescribed.
• Publication of Regulations
(a)Before changing the regulation, a draft of proposed
regulations should be made and published 3 months in advance
and it should be published for general information.
(b)Regulations so made shall be published in the Official Gazette,
and on such publication shall have effect as if enacted in this Act.