Trade Union

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Trade unions Act 1926

Applicability

 It Extends to whole of India


Definitions
 Registered Trade Union" means a Trade Union registered under this Act

 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

 Trade Union" means 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 condition on the conduct of any trade or
business, and includes any federation of two or more Trade Unions
Appointment of Registrars
(1) The appropriate Government shall appoint a person to be the
Registrar of Trade Unions for each State

(2) The appropriate Government may appoint as many Additional and


Deputy Registrars of Trade Unions as it thinks fit for the purpose of
exercising and discharging, under the superintendence and direction
of the Registrar, such powers and functions of the Registrar under
this Act as it may, be order, specify and define the local limits within
which any such Additional or Deputy Registrar shall exercise and
discharge the powers and function so specified.

(3) Subject to the provisions of any order , where an Additional or Deputy


Registrar exercises and discharges the powers and function of a
Registrar in an area within which the registered office of a Trade
Union is situated, the Additional or Deputy Registrar shall be deemed
to be Registrar in relation to the Trade Union for the purposes of this
Act.
Mode of registration
(1)Any seven or more members of a Trade Union may be 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.

(2) Where an application has been made under this section of 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 applications, but not exceeding half of the total
number of the persons who made the application, have ceased to be
members of the Trade Union or have notice in writing to the Registrar
dissociating themselves from the application.
Application for registration
(1) Even 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 particulars, namely:-
(a) The names, occupations and addresses of the members making the
application;
(b) The name of the Trade Union and the address of its head office, and
(c) The title, names, ages, addresses and occupations of the members of
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 Union prepared in
such form and containing such particulars as may be prescribed.
Provisions to be contained in the rules of
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 provided for following matters, namely:-

(a) The name of the Trade Union;

(b) The whole of the object 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 purpose, 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 members of the 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 to form the
executive of the Trade Union
 The payment of a subscription by members of the Trade Union which
shall be not less than twenty five paisa per month per member:

(a) The conditions under which any member shall be entitled to any
benefit assured by the rules and under which any fine or forfeiture
may be imposed on members;

(b) The manner in which the member shall be amended, varied or


rescinded;

(c) The manner in which the members of the executive and the other
members of the Trade Union shall be appointed and removed;

(d) The safe custody of the funds of the Trade Union, and annual audit,
in such manner as may be prescribed, of the account books by the
act and members of the Trade Union; and

(e) The manner in which the Trade Union may be dissolved.


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
the act or that the Trade Union is entitled to registration under this
Section , 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 resemble 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.
Registration
 The Registrar, on being satisfied that the Union has complied with all the
requirements of this Act in regard to registration, shall register the Trade Union
by entering in a register to be maintained in such form as may be prescribed, the
particulars relating to the Trade Union contained in the statement accompanying
the application for Registration

 The Registrar cannot refuse to register a Trade Union if the application for
registration complies with the technical requirement as laid down in this Act.

 This Registrar has only to see if it fulfils the technical requirements and not
whether it could be described as unlawful. If the applicant for registration
complies with technical requirements of this Act, he has no option but to register
the Trade Union, no matter what happens to it subsequently even if it, in fact,
proceeds counter to law or seeks to carry out its lawful objects in an unlawful
way.

 An application for registration cannot be rejected on the ground that it is an


attempt to revive an old, already unlawful, union under a new name
Certificate of Registration

 The Registrar registering a Trade Union


under this Section, shall issue a certificate of
registration in the prescribed form which shall
be conclusive that the Trade Union has been
duly registered under this Act
Cancellation of Registration
 A certificate of registration of a Trade Union may be withdrawn o 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 willfully 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
this Section

 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.
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 Presidency-town to
the High Court, or
(b) Where the head office is situated in any outer 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.
(3) For the purpose of an appeal under this section an Appellate Court shall, so far as may be,
follow the same procedure and have the same powers as it follows an has when trying a
suit under the Code of Civil Procedure, 1908, and may direct by whom the whole or any
part of the costs of the appeal shall be paid an 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 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.
Registered office

 All communications and notice 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 with
fourteen days of such change to the Registrar
in writing, and the changed address shall be
recorded in the register
Incorporation of registered Trade Unions

 Every registered Trade Union shall be a body


corporate by the name under which it is
registered and shall have perpetual
succession and a common seal with power to
acquire and hold both movable and
immovable property an contract, and shall, by
the said name sues and be sued
Certain Acts not to apply to registered
Trade Unions
(a) The Societies Registration Act, 1863.

(b) The co-operative Societies Act, 1912.

 shall not apply to any registered Trade Union, had the registration of any such
Trade Union under any such Act shall be void
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 "officers" 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 of defense of any legal proceeding to which the Trade Union or
any member thereof is a party, when such prosecution or defense is undertaken
for thee 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;
(d) Thee 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) Allowance to members or their dependants 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 for 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;
(i) The upkeep of a periodical published mainly for the purposes 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.
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
interest of its members, in furtherance of any of the objects specified
in this section.
 (2) The objects referred to in this section 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 [Note: Deleted by Act 42 of
1960] 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 [ the Constitution or for any local authority;
or
d) The registration of electors or the selection of a candidate for any
legislative body constituted under 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.

 No member shall be compelled to contribute to the fund constituted


under this section, 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 r at any disadvantage as compared with other members of
the Trade Union except in relation to the control of management of
the said fund) by reason of his contributing to the said fund; and
contribution to the said fund shall not be made a condition for
admission to the Trade Union.
Criminal conspiracy in trade disputes

 No officers or members of a registered Trade


union shall be liable to punishment under this
section and the provisions of the Indian Penal
Code, in respect of any agreement made
between the members for the purpose of
furthering any such object of the Trade Union
as is specified unless the agreement is an
agreement to commit an offence.
Immunity from civil suit to certain cases

(1) No suit or other legal proceeding shall be maintainable in any Civil


Court against any registered Trade Union or any 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 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 tortuous act done in
contemplation or furtherance of a trade dispute by and 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.
Right to inspect books of Trade Union

 The account books of a registered Trade


Union and the list of members thereof shall
be open to inspection by an member of the
Trade Union at such times as may be
provided for in the rules of Trade Union.
Rights of minors to membership of Trade
Union
 Any person who has attained the age of fifteen years may be a member of
registered Trade Union subject to any rules of the Trade Union to the
contrary, and may, subject as aforesaid, enjoy all the rights of a member
and execute all instruments an give all acquaintances necessary to be
executed or given under the rules:
Disqualification of office bearers of
Trade Union
(1) A person shall be disqualified for being chosen as, and for being a
member of the executive or any other office-bearer or registered Trade
Union if-
(i) He has not attained the age of eighteen years;
(ii) He has been convicted by a Court in India of any offence involving
moral turpitude and sentenced to imprisonment, unless a period of five
years has elapsed since his release.
(2) Any member of the executive or other office-bearer of a registered
Trade Union who, before the commencement of the Indian Trade Union
(Amendment) Act, 1964, has been convicted of any offence involving
moral turpitude and sentenced to imprisonment shall on the date of
such commencement, cease to be such member or office-bearer unless
a period of five years has elapsed since his release before the date.
Proportion of office-bearers to be
concerned with the industry
 Not less than one half of the total number of every
registered Trade Union shall be persons actually
engaged in an industry with which the Trade Union
is convicted.
 Provided that the (appropriate Government) may, by
special or general order declare that the provisions
of this section shall not apply to any Trade Union or
class of Trade Unions specified in the order.
Change of name

 Any registered Trade Union may, with the


consent of not less than two-thirds of the total
number of its members and subject to the
provisions of this Section change its name.
Amalgamation of Trade Union
 Any two or more registered Trade Unions
may become amalgamated together as one
Trade Union with or without dissolution or
division of the funds of such Trade Unions or
either or any of them, provided that the votes
of at least one-half of the members of each or
every such Trade Union entitled to vote are
recorded, and that at least sixty percent of
the votes recorded are in favour of the
proposal
Notice of change of name or
amalgamations
(1) Notice in writing of every change of name and every
amalgamation, signed, in the case of change of name, by the
Secretary an by seven members of the Trade Union changing its
name and in the case of an amalgamation by the Secretary and
by seven members of each and every Trade Union which is a
party thereto, shall be sent to the Registrar, and where head
office of the amalgamated Trade Union is situated in a different
(State), to the Registrar of such (State).
(2) If the proposed name 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 refuse to register the change of name.
3) Save as provided in this section, the Registrar shall if he is
satisfied that he provisions of this Act in respect of change of
name have been complied with, register the change of name in
the register referred to in this Section, and the change of name
shall have effect from the date of such registration.
(4) The Registrar of the (State) in which the head office of the
amalgamated Trade Union is situated shall, if he is satisfied that
the provisions of this Act in respect of amalgamation have been
complied with and that the Trade Union formed thereby is entitled
to registration and register the Trade Union in the manner
provided in this Section and the amalgamation shall have effect
from the date of such registration.
Effects of change in name and of
amalgamation
 (1) The change in the name of a registered Trade Union shall not
effect any rights or obligation of the Trade Union or render
defective any legal proceeding by or against the Trade Union,
and any legal proceeding which might have been continued or
commenced by or against it by its former name may be
continued or commenced by or against it by its former name may
be continued or commenced by or against it by its new name.

(2) An amalgamation of two or more registered Trade Unions
shall not prejudice any right of any such Trade Unions or any
right of a creditor or any of them.
Dissolution
 (1) When a registered Trade Union is dissolved, notice for the
dissolution signed by seven members and by the Secretary of
the Trade Union shall, within fourteen days of the dissolution, be
sent to the Registrar and shall be registered by him if he is
satisfied the dissolution has been effected in accordance with the
rules of the Trade Union, and the dissolution shall have effect
from the date of such regulation.

 (2) Where the dissolution of a registered Trade Union has been


registered and the rules of the Trade Union do not provide for the
distribution and funds of the Trade Union on dissolution, the
Registrar shall divide the funds amongst the member in such
manner as may be prescribed.
Returns
(1) There shall be sent annually to the Registrar, on or before such date
as may bee prescribed a general statement, audited in the prescribed
manner, of all receipts and expenditure of every registered Trade
Union during the year ending on 31st day of next preceding such
prescribed date, and of the assets and liabilities of the Trade Union
existing on such 31st day of (December). The statement shall be
prepared in such form and shall comprise such particulars as may be
prescribed.

(2) Trade Union during the year which the general statement refers,
together also with copy of the rules of the Trade Union corrected upto
the date of the dispatch thereof to the Registrar.

(3) A copy of every alteration made in the rules of a registered Trade Union
shall be sent to the Registrar within fifteen days of making of the
alteration.
Power to make regulations
(1) The [appropriate Government] may make regulations for the purpose of
carrying into effect the provisions of this Act.
(2) In particular and without prejudice to the generality of the generality of
the foregoing power, such regulations may provided for all or any of the
following matters, namely;
(a) The manner in which Trade Union 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,
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
(1) The Power to make regulations conferred by this section is
subject to the condition of the regulations being made after
previous publications.

(2) The date to be specified in accordance with this section, as that


after which a draft of regulations proposed to be made will be
taken into consideration shall not be less than three months from
the date on which the draft of the proposed regulations was
published for general information.

(3) Regulations so made shall be published in the (Official Gazette)


and on such publication shall have effect as if enacted in this Act.
Failure to submit returns
(1) If default is made on the part of any registered Trade Union in
giving any notice or sending any statement or other document as
required by or under any provision of this Act, every (office-
bearer) or other person bound by the rules of the Trade Union to
give or send the same or if there is no such or person, every
member of the executive of the Trade Union, shall be punishable
with fine which may extend to five rupees and in the case of a
continuing default, with an additional fine which may extend to
five rupees for each week after the first during which the default
continues:
 Provided that the aggregate fine shall not exceed fifty rupees.

(2) Any person who willfully makes, or causes to be made, any false
entry in, or any omission from the general statement required by
this section, or in or form any copy of rules or of alterations of
rules sent to the Registrar under that Section, shall be
punishable with fine which may extend to five hundred rupees.
Supplying false information regarding
Trade Union
 Any person who, wit intent to deceive, gives to any member of a
registered Trade Union or to any document purporting or
applying to become a member of such Trade Union, any
document purporting to be a copy of the rules of the Trade Union
or of any alterations to the same which he knows, or has reason
to believe, is not a correct copy of such rules or alterations as are
for the time being in force, or any person who, with the like intent
gives a copy of any rules of an unregistered Trade Union to any
person on the pretence that such rules are the rules of a
registered Trade Union, shall be punishable with fine which may
extend to two hundred rupees.
Cognizance of offence
 (1) No court inferior to that of a Presidency
Magistrate or a Magistrate of the first class shall try
any offence under this Act.
 (2) No court shall take cognizance of any offence
under this Act unless complaint thereof has been
made by or with the previous sanction, by the
person to whom the copy was given, within six
months of the date on which the offence is alleged
to have been committed.

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