THE TRADE UNIONS ACT, 1926

- SURAJ SHARMA

Before 19th century, trade union activities & trade unions were considered unlawful.

In 1920, the leaders of trade unions were prosecuted & imprisoned for their bonafide trade union activities in Madras, binny &Co filed a suit against Madras Textile labour union for refusing employees to return for work after award.

To protect bonafide trade union activities The Indian Trade Union Act, 1926 was enacted & came in force from 1st June, 1927.

There were many amendments in 1929,1942,1951,1960,1970,1974, &2001. In 1974 the word “Indian” was removed & thus The Trade Unions Act, 1926 was declared.

Unregistered trade unions are not governed by this Act.

The Act extends to the whole India except the state of Jammu & Kashmir.

IMPORTANT FEATURES

i. Provides registration of trade unions with the registrar of trade unions. It empower the registrar to call for any requirement for alteration or cancel the registration.

ii. Every trade union is body corporate & have common seal & perpetual succession.

iii. It lays down. a. the rights & liabilities of registered trade union. b. objects on which general funds to be spent c. Constitution of separate funds for political

purposes.iv. Provides immunity from civil suits to registered trade

unions, Its leaders or members.v. Certain Acts do not apply to registered trade unions. a. The Societies Registration Act, 1860 b. The Co operative Societies Act, 1912 c. The Companies Act, 1956.

DEFINITIONSi. Appropriate Govt. : means in relation to trade union if

objects not confined to one state then The Central Govt. or State Govt.

ii. Executive : Sec. 2(a)- A body of members to affairs of trade unions entrusted.

iii. Office Bearers: Sec. 2(c): members of Executives & not Auditor.

iv. Registered Office: Sec. 2(d): office of trade union registered under this Act.

v. Registered Trade Union: trade union registered under this Act with the Registrar.

vi. Registrar: sec.2(f): registrar meansi. a Registrar of trade unions appointed by the

Appropriate Govt. u/s(3). Includes Additional or Deputy Registrar of trade union.

ii. In relation to any trade union, the registrar appointed for the state in which the Head office or registered office of trade union is situated.

vii. Trade Dispute[ sec.2(g)]: Trade Dispute means any dispute between

employers and workmen or between workmen & workmen or between employers & employers which is connected with employment or non employment or terms of employment or the condition of labour of any person.

A demand by one party & not accepted by other party. Then dispute

Individual Dispute can not be a Trade Dispute unless the cause is sponsored by Trade union or by substantial no. of workmen.

viii. Workmen:[sec.2(9)]: Workmen means all persons employed in Trade or Industry whether or not in the employment of employer with whom the Trade Dispute arises. The definition includes a dismissed, discharged retrenched or removed employees also.

E.g. Domestic workers & gardeners serving at Rajbhavan of Madras wanted to register their Trade Union. The registrar refuses, why? They are not in trade/business. Employees are not workmen. Their services are purely of personal nature. Govt. Servants can not form trade Union

Cont.

ix. Trade Union: means any combination, whether

1. Temporary or permanent formed.2. Primarily for the purpose of regulating

relations between workmen & employers or3. For imposing restrictive conditions on

conduct of any trade or business and includes federation of two or more Trade Unions, provided that the Act shall not affect.

I. Any agreement done between partners of their own business(partnership firms)

II. Any agreement between employer & those employed by him, as to such employment

III. Any agreement in consideration of sale of goodwill of a business.

Cont.

REGISTRATION OF TRADE UNIONSAppointment Of Registrars (sec-3): Appropriate

Govt. appoint the Registrar for each state. He may appoint Additional/Deputy Registrar. He can discharge power on behalf of Registrar.

Mode of Registration (sec-4): Any seven or more members of Trade Union by subscribing their names & complying with provisions of this Act can apply for registration. But before registration if some applicants apply to the registrar to withdraw their names as applicants( Not more than 50% of applicants). Still it will not make any effect on process of Registration.

Application for Registration:

Application should be accompanied withi. Copy of rules of trade unionii. Names, occupation, address of membersiii. Names & address of trade union officeiv. Name &address of office bearersv. If trade union is existing since 1year then

assets &liabilities of trade union.

PROVISIONS TOBE CONTAINED IN RULES OF A TRADE UNION1. Name of trade union2. Objects of trade union3. The whole purposes for which general funds of

trade union are lawfully applicable4. Maintenance of list of members of trade union

& adequate provisions for conducting inspection by office bearers.

5. Admission of ordinary members in trade union.(Hon or Temp)

6. payment of subscription by members must less than Rs.1/-P.A. in rural area, Rs 3/- P.A. in other unorganized sector, Rs 12/- P.A. in other case.

Cont.

7. Conditions for making members entitled for benefits under rules. Under which fines or forfeiture may be imposed.

8. Manners in which the said rules may be amended or varied

9. Manners of appointment of executives and office bearers of trade union and their removal.

10. Safe custody of funds, annual audit, inspection of account books by office bearers & members.

11. Manners in which trade union may be dissolved

Power to call for further particulars & to require alteration of name:

1. The registrar may call for further information for satisfying himself.

2. Power to require alteraion of name if resembling with any previous/existing trade union or refuse the trade union.

Registration (Sec-8): the registrar being satisfied(with all particulars) shall register the T.U. by entering in register.

Certificate of registration (sec-9): the registrar shall issue certificate of registration in the prescribed form.

Cancellation of registration (sec-10): 1. A certificate may be withdrawn or cancelled if not satisfied2. If certificate has been obtained by fraud or mistake. Not less than two months previous notice specifying ground

on which withdrawal or cancellation shall be done by the register.

Appeal (sec-11): any person aggrieved by refusal or cancellation by the registrar can make appeal in prescribed period.i. In High Court if H.O. of trade union is in

presidency town ii. In Additional/ Asstt. Judge of civil court in

other area. The appellate court may dismiss the appeal

or pass an order to the Registrar to issue a certificate of registration. Or set aside the order of withdrawal or cancellation.

Registered office (sec-12): All communications should be addressed to its registered office. Notice of change of address of H.O. shall be given within 14 days of such change.

RIGHTS AND LIABILITIES OF RGD. TRADE UNIONS (SEC-15)Objects on which general funds to be spent.a) Salaries, allowances &expenses to office bearers

of trade union.b) Admin expenses including Audit.c) The prosecution or defence of legal proceeding to

which the trade union or any member thereof is a party.(protection of rights of trade union or its members.)

d) the conduct of trade dispute on behalf of T.U. or its members.

e) The compensation of members for loss arising out of trade dispute.

f) Allowances to members or dependants on account of death, old age, sickness, accidents or unemployment of such members.

Cont.

g) The issue of, or the undertaking of liabilities under policy of assurance (insurance) against sickness, accident or unemployment.

h) The provision of education, social or religious benefits for members (funeral or religious ceremony of deceased member)

i) Periodical publications in relation to issues related to employers &employees.

j) The payment, in furtherance of any of the object on which general funds to be spent.

k) Subject to any condition contained in the notification, any other object notified by Appropriate govt. in official Gazette.

Constitution of separate fund for political purpose (sec-16):

Expenses for candidate for election of legislative body or of any local body or of any local authority.

Holding of meetings or distribution of any literature or document in support of candidate.

The maintenance of any person of any legislative body.

Registration of electors or the selections of a candidate for legislative body.

Criminal conspiracy in trade disputes (sec-17):

No office bearer or member of registered trade union shall be liable to punishment for criminal conspiracy to trade dispute. They can go for strike (under IPC Code).

Immunity From Civil Suit (Sec-18):1. No suit or other legal proceeding shall be maintainable

in civil court against any registered trade union or office bearers or members if its in relation to trade dispute.

2. Immunity from tortious liabilities: A registered trade union shall not be liable in any suit or other legal proceeding in any civil court in respect of tortious act done in contemplation or furtherance of trade dispute. if it is proved that such person has acted without knowledge of it. e.g. employee proceed for strike as employer did not pay bonus as a result of award. Employer claimed Rs 8 lakhs to employees for loss due to strike.

Enforceability of agreement (sec-19): Agreement made bet members of registered trade

union & employer shall not be void or voidable merely by reason of fact that any object of agreement are in restraint of trade. Civil court can not recover damages for breach of agreement for enforcement.

Right to inspect books of trade union (sec-20): Books of account & list of members are to be kept open

for inspection by the officer bearers or any members.

Rights of minors to membership (sec-21): Any person who has attained age of 15 yrs may be

member of registered trade union. He cannot become office bearer of it.

Disqualifications of office bearers of trade unions(sec-21A):

A person shall be disqualified to become member of executive/office bearer if

i. He has not attained age of 18 yrs.ii. He has been convicted by court in India of any

offence involving moral turpitude & sentenced to imprisonment unless 5 yrs has elapsed since his release (before or after membership)

Proportion of office bearers to be connected with the industry (sec-22):

Not less than one half of total number of the (office bearers) of every registered trade union shall be persons actually engaged or employed in industry with which trade union connected.

Note: employee or office bearer connected with trade union

& employed in Industry only can negotiate with Management.

Change of name (sec-23): Any registered T.U. may with the consent of

not less than 2/3 of total members & subject to the provisions of sec-25 change its name.

Amalgamation of trade unions (sec-24): 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 one 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 60%of the recorded votes are in favour of the proposal.

Notice of change of name or amalgamation (sec-25):

Notice of change of name in writing &signed by the secretary &other7 members of T.U. to be sent to the registrar.

In case of amalgamation, notice to be signed by the secretaries of each T.U.& 7members from each T.U.

Consent to be received from all members in general meeting of T.U.

If the proposed name is identical with any existing T.U. or likely to resemble &likely to deceive the public or members of T.U. the registrar may refuse to register such change.

Effect of change of name and of amalgamation (sec-26):

i. The change of name shall not affect any rights or obligations of the trade union.

ii. An amalgamation of any two or more registred trade unions shall not prejudice any right of any such unions or any right of creditors.

Dissolution (sec-27):iii. When a registered T.U. is dissolved, notice of

dissolution signed by 7 members & by the secretary of T.U. shall within 14 days of dissolution to be sent to registrar, the registrar will register it.

iv. Where the dissolution of registered T.U. has been registered then distribution of funds will not take place, the registrar shall divide the funds among the members in prescribed manner.

RETURNS (Sec-28):1) General statement- Audited Annual

statement- Assets & liabilities Registers to be submitted by 31st Dec of every year.

2) Statements of changes:-Of office bearers-copy of rule

3) Copy of alteration of rules to be sent within 15 days of changes.

THANKYOU