The Trade Unions Act, 1926

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

DEFINITIONS
i. 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 means
i. 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

ix. Trade Union: means any combination,
whether
1. Temporary or permanent formed.
2. Primarily for the purpose of regulating relations
between workmen & employers or
3. 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 UNIONS
 Appointment 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 with
i. Copy of rules of trade union
ii. Names, occupation, address of members
iii. Names & address of trade union office
iv. Name &address of office bearers
v. If trade union is existing since 1year then assets
&liabilities of trade union.

PROVISIONS TOBE CONTAINED IN
RULES OF A TRADE UNION
1. Name of trade union
2. Objects of trade union
3. The whole purposes for which general funds of
trade union are lawfully applicable
4. 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 satisfied
2. 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

 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

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):
i. 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.
ii. 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.

The Trade Unions Act, 1926

More Related Content

What's hot

Similar to The Trade Unions Act, 1926

Recently uploaded

In this document

The Trade Unions Act, 1926