Indian Trade Union Act with latest amendments - HR /Personnel/IR

Dr.Sarma 25-04-2017

05/27/17dr.sarma/HR coaching/Imran 1

1-Trade Union Act, 1926 – The Act provides for the registration of trade union and determines the rights, liabilities and immunities of the union.2. The Industrial Employment (Standing Orders) Act, 1946 drafted by the employer which contains the conditions of employment.3. The Constitution of India, 1950 – The Constitution of India in the Chapters on Fundamental Rights and Directive Principles of State Policy justify the legality4-Maharashtra recognition of trade unions Act/prevention of unfair labor practices act-MRTUPULP act


A Trade union is an association of workers formed for the purpose of protecting and improving the socio-economic status of its members through collective action.


◦ Safeguards workers against all sorts of exploitation by the employers, by union leaders and by political parties.

◦ Protects workers from the atrocities and Unfair Labour Practices of the management.

◦ Works to ensure healthy, safe and conducive working conditions.

◦ Exerts pressure for enhancement of rewards associated with the work only after making a realistic assessment of its practical implications


The Registration of a trade union is not necessary.

registration, gives a trade union several benefits that are not available to an unregistered Trade Union.

Hence it is only a registered Trade Union which can espouse an industrial dispute.

A Registered Trade Union gets immunity from civil and criminal liability for acts done in pursuance to a trade dispute.


Upon registration, a trade union gets a legal entity status, it has perpetual succession and a common seal.

It can acquire and hold movable as well as immovable properties, can contract through agents, can sue and can be sued.

A registered trade union gets immunity in certain criminal, civil, and contractual proceedings to acts done in contemplation of a trade dispute.


The emphasis is on the purpose of the

association rather than the type of workers


A registered trade union has a right to establish a general fund.has a right to establish a political fund. Subscription to this fund is not necessary for a member.

Unions have the right to amalgamate.

The executive of a registered trade union can negotiate with the employer on 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

The employer shall receive and send replies to letters and grant interviews to such body regarding such matters.

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.


The appropriate government appoints a person to be the registrar or trade unions for each state.

When the documentation is completed, the Registrar issues a Certificate of Registration.


An application must be sent to the Registrar of Trade Unions The application must be made by seven or more persons who are

engaged in the trade or industry in connection to which the Trade Union is to be formed.

All the applicants must subscribe their names to the rules of the Trade Union and comply with the provisions of this act regarding registration.


There must be at least 10% or 100, whichever is less, members who are engaged or employed in the establishment or industry to which it is connected.If more that half of the persons who had applied for the registration cease to be members of the union or expressly disassociate themselves from the application, the application for Registration will be deemed to be invalid.


The application should be sent to the registrar along with the copy of the rules of the trade union. (The rule book should be enclosed).

It must contain a statement of the following particulars:

The name, occupation, and addresses of the applicants.

The name of the trade union and the address of its head office.

The titles, names, ages, addresses, and occupations of the office bearers of the trade union.

If the trade union has been in existence for more than 1 year, a general statement of its assets and liabilities.


A copy of this rule book must be supplied along with the application for registration of the trade union.

This rule book details the internal administration of the trade union and also determines and governs the relationship between the trade union and its members. It must contain the rules for the following matters:Name of the trade unionObject of the trade unionPurposes for which the general funds can be used.Maintenance of the list of members and adequate facilities to inspect it by the members of the trade union the membership of ordinary members who are actually engaged or employed in an industry with )which it is connected as well as the membership of the honorary or temporary members.


Rules related to the appointment of members of the executive body.

The membership or subscription fee.

The conditions under which a member can get the benefits or has to pay fines.

The safe custody of funds and provisions for inspecting or auditing the statements, or other documents of the trade union.

Dissolution of the trade union.


if a member fails to pay subscription fee, he cannot be considered a member of the trade union. However, subscriptions cannot be refused under some pretext which results in the denial of membership.

membership of the union does not automatically cease upon termination of the employment.


• The registrar has the power to ask for further information to satisfy himself that the trade union complies with section 5 and is eligible to be registered under section 6.

• The registrar can refuse to register the trade union until he receives the information.

• The power of the registrar is not discretionary.


Register if name is not connected to one already registered.

Further, the Registrar has the power to ask to change the name of the trade union if a union with the same name already exists


Under section 9, the registrar will issue the certificate of registration in the prescribed form, which is evidence that the trade union is registered under this act.


if the registrar does not register the trade union within 3 months of application, an appeal can be made to the High Court under art 226.

not incumbent upon the Registrar to hear other existing unions before registering a new union.


the Registrar has the power to cancel the registration of a trade union in the following conditions:

2 months notice in writing stating the ground

If the registrar is satisfied that registration was obtained by fraud or mistake.

If the trade union has ceased to exist.

Financial irregularities in the accounts

If the trade union willfully, has contravened or allowed any rule to continue in force, which is inconsistent with the provisions of this act.


If the registrar is satisfied that a trade union of workmen has ceased to have the requisite number of members a show cause notice is necessary to de recognize


An appeal may be made in case :

There is refusal by the registrar to register the Trade Union Or

If there is a cancellation of the certificate of registration


Registration is done at the initiative of the Trade Union.Certificate of Registration is issued by Registrar Recognition is granted by the employer to Trade Unions for facilitating negotiations and effective collective bargaining.


There is no concept of a recognized union under the Trade Union Act or the Industrial Disputes Act.

union cannot enforce the right of recognition against a management by writ, since there is no statutory provision.


where a particular union has represented the workmen for over 3 decades and carried out negotiations, such union cannot be said to be “Not Recognized”.

Refusal to grant Recognition, or withdrawal of Recognition once granted, without affording a opportunity of hearing to the Trade Union is opposed to principles of Natural Justice.


High Court can interfere if principles of natural justice are not followed.

HC does not have the right to quash recognition of one union and accord it to another union.

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The following are some restrictions on a registered union.

Can spend funds only on the activities specified in Section 15. 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


Section 17 confers immunity from liability in the case of criminal conspiracy under section 120-B of IPC, committed by an office bearer or a member.

immunity is partial in the sense that it is available only with respect to the legal agreements created by the members for the furtherance of valid objectsas calling for strike, persuading members to protest, distributing pamphlets, making speeches to garner support for the union or educate the employees about any unjust act of the management etc.


The immunity can be claimed by a trade union for an act which is done in furtherance of a trade dispute:

Immunity is restricted to breach of contract of employment Egg. Calling for a strike.

immunity for such conspiracy as long as no

offence is committed.


When it involves a violent act or illegal means then members cannot claim immunity.

Deliberate Trespass Molestation during picketing


However, a trade union, its officers, and its members are immune from this liability provided that such an inducement is in contemplation or furtherance of a trade dispute. Further, the inducement should be lawful. There is no immunity against violence, threats, or any other illegal means.


A trade union cannot force members to subscribe to political fund under .

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.

Minors more than 15 yrs. of age to be members of a trade union. However, such minors cannot hold office.


A trade union cannot appoint a person as an office bearer of a trade union if he has been convicted of a crime involving moral turpitude and has been imprisoned for 6 months or more within last 5 years.

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.

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


An agreement between trade union members is neither void nor voidable.

It is important to note that this right is available only to registered trade unions.

An unregistered trade union must follow the principles of general contract law


Collective bargaining consists of negotiations between an employer and Union generally the recognized union employees To determine the conditions of working

The result of collect ive bargaining procedures is a collective agreement .


The notice of dissolution signed by seven members within 14 days of dissolution will be sent to registrar and shall be registered by him if he is satisfied that the dissolution has been affected in accordance with rules of the TU.

Dissolution shall have effect from the date of registration.


To minimize the helplessness of individual workers by making them stand collectively.

To provide the workers with self confidence.

They take up welfare measures for betterment of conditions for the workers.

To remove the dissatisfaction and redress the grievances and complaints of workers.


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Indian Trade Union Act with latest amendments - HR /Personnel/IR