Trade Unions Act, 1926

Purpose and Objective of the Trade Unions Act, 1926

The Act was enacted to:
• Legalize the formation of trade unions.
• Grant legal protection to trade union activities.
• Define the rights and liabilities of registered trade unions.
• Provide workers with the right to form associations to negotiate with
employers on issues like wages, hours of work, and conditions of
employment.
• Promote collective bargaining to prevent and resolve disputes.
Trade unions play a crucial role in balancing the power dynamics
between employers and employees, fostering collective bargaining,
and protecting workers’ rights.
 Trade Unions Act, 1926
IT GIVES LEGAL
STATUS TO EXTENDS TO
REGISTERED WHOLE INDIA
TRADE UNION
APPLICABLE
PROTECTION OF
TRADE UNION • EMPLOYEE’S
FROM CIVIL OR ASSOCIATION
CRIMINAL • EMPLOYER’S
PROSECUTION ASSOCIATION

THIS ACT DEALS WITH IT ENSURE

SECTION 1 PROPER
• REGISTRATION
• LIABILITIES (INTRODUCTION) UTILIZATION
OF FUNDS
• RESPONSIBILITY
• RIGHTS
 Trade Unions Act, 1926

SEC 2(d) REGISTERED

SEC 2 (e)
TRADE OFFICE
REGISTERED
OFFICE REGISTERED TRADE UNION
AS HEAD OFFICE SEC 2(g) TRADE
SEC 2(b) OFFICE
DISPUTE
BEARER
BETWEEN
-MEMBER OF TOP
EMPLOYER AND
LEVEL MANAGEMENT
WORKMEN
-ANY MEMBER OF
EMPLOYER AND
EXECUTIVE
EMPLOYER
-EXCLUDES AUDITOR
WORKMEN AND
EMPLOYER

SEC 2(a)
EXECUTIVE SECTION 2 SEC 2(h)
-TOP LEVEL (DEFINITIONS) TRADE UNION
MANAGEMENT
 Trade Unions Act, 1926

SEC 2(h)
TRADE UNION

TO REGULATE
TEMPORARY OR
RELATIONS
PERMANENT

EMPLOYER EMPLOYER AND

AND EMPLOYER
WORKMEN

WORKMEN AND
WORKMEN

INCLUDES FEDERATION
OF 2 OR MORE TRADE
UNIONS
 Trade Unions Act, 1926

SEC.3 APPOINTMENT OF REGISTRAR

empowers the appropriate Government State or Central

to appoint a person to be registrar of Trade Unions

ALSO

empowered to appoint additional and Deputy Registrars

for the purpose of exercising and discharging the powers and duties of the Registrar.
 Trade Unions Act, 1926
SEC.4 APPLICATION FOR
REGISTRATION

TRADE UNION ---application------> REGISTRAR OF TRADE

UNION

REQUEST BY SUBSCRIPTION - ATLEAST 7

MEMBERS PERSONS SHALL SUBSCRIBE
TO RULES
1/10th actual
employees working in 100
establishment

Whichever is less
 Trade Unions Act, 1926
CERTIFICATION BY REGISTRAR (SECTION 5)

MEMBERS OF TRADE
Application REGISTRAR OF TRADE
UNION UNION

COPY OF RULES + STATEMENT

Details of office
1/1Oth of actual Details of head office bearers
100
employees
Details of subscribers Place of work of
members of trade
union
whichever is
less General statement of assets and
liabilities if existence for more
than one year
 Trade Unions Act, 1926
SEC. 6 REQUIREMENTS FOR REGISTRATION
PROVISION TO BE CONTAINED IN RULES OF TRADE UNION

Application of Registration supported by copy of Rules

Matters to be included in Rules

• NAME
• PURPOSE AMENDMENT PROCEDURE
• SUBSCRIPTION FEES TO MEMBER
• UTILISATION OF FUNDS
• MANNER OF ELECTION OR REMOVAL OF OFFICE BEARER
• MANNER OF DISSOLUTION
• TENURE OF OFFICE BEARER (max. 3 years)
• MANNER OF ANNUAL AUDIT
 Trade Unions Act, 1926

SEC. 7 REGISTRAR’S POWER TO CALL FOR INFORMATION

• To call for information that any application made by the

trade union is proper.
• Right to reject the application.
 Trade Unions Act, 1926

SEC. 8 REGISTRATION

If the registrar has fully satisfied himself that a

union has complied with all the necessary
provisions of the Act, he may register such union.
 Trade Unions Act, 1926

SEC 9
CERTIFICATE OF REGISTRATION
Application
MEMBERS OF TRADE Copy of rules + statements REGISTRAR OF
UNION TRADE UNION
Certificate of Registration

The registrar shall issue a registration certificate and such certificate

shall act as conclusive proof of registration of the trade union.
 Trade Unions Act, 1926

SEC. 9A MINIMUM REQUIREMENT RELATED TO THE MEMBERSHIP OF A TRADE UNION

• Trade union which has been registered must at all times should
continue to have not less than 10% or one hundred of the workmen,
whichever is less
• subject to a minimum of seven, as its members.
• The minimum age limit for membership of a Trade Union is 15 years
unless the rules of a particular trade union provide for higher age limit.
• However for being an office bearer the person has to be above 18 years
of age.
 Trade Unions Act, 1926
SEC.1O CANCELLATION OF REGISTRATION
CERTIFICATION OF REGISTRATION

Application
TRADE UNION REGISTRAR OF TRADE UNION

CANCELLATION OF CERTIFICATE OF REGISTRATION

Cancellation

• Application by Trade union

• Number of member in Trade Union falls below (1/10 or 100 workmen)
• Registration obtained by fraud or mistake
• Trade Union ceases to exit
• Rescinded any rule of Trade Union
 Trade Unions Act, 1926

BODY CORPORATE

PERPETUAL
SUCCESSION +
SEC. 13 COMMON SEAL
INCORPORATION OF
TRADE UNION MAY ACQUIRE
MOVABLE AND
IMMOVABLE
PROPERTY

CAN SUE AND CAN BE

SUED IN ITS OWN
NAME
 Trade Unions Act, 1926

SEC.17 CRIMINAL CONSPIRACY IN TRADE DISPUTES

No member of a trade union can be held liable for criminal

conspiracy regarding any agreement made between the
members of the union in order to promote lawful interests of
the trade union.
 Trade Unions Act, 1926

SEC. 18 IMMUNITY FROM CIVIL SUITS IN CERTAIN CASES

The members of trade union from civil or tortious liabilities arising

out of any act done in furtherance or contemplation of any trade
disputes.
 Trade Unions Act, 1926
SEC. 22 APPOINTMENT OF OFFICE BEARERS
At least half of the office bearers of a trade union of workers
1/3rd or less members can be
of unorganized sector must be engaged or employed in an
outsiders such as Lawyers,
industry to which the trade union is connected.
politicians, social workers etc.
“Unorganised sector” means any sector which the appropriate
• To be appointed as an office
Government may, by notification in the Official Gazette,
bearer or executive of a
specify.
registered trade union, a person
must have-
• attained the age of 18 years;
and
Provided, all office-bearers of a registered Trade
• not been convicted of any
Union, except not more than one-third of the total
moral turpitude and sentenced
number of the office-bearers or five, whichever is
to imprisonment, or a period of
less, shall be persons actually engaged or employed
at least 5 years has elapsed since
in the establishment or industry with which the Trade
his release.
Union is connected.
 Trade Unions Act, 1926

CHANGE OF NAME & REGISTERED OFFICE

• A registered trade union may change its name with the consent of at least
2/3rds of the total numbers of its members.
• Notice of change of name in writing, signed by the secretary and 7
members of the union, should be sent to the registrar.
• The Registrar shall register the change in name if he is satisfied that the
proposed name is not identical with the name of any other existing union.
 Trade Unions Act, 1926

CHANGE OF REGISTERED OFFICE

Notice of change in registered office address

should be given to the Registrar in writing
within 14 days of such change.
 Trade Unions Act, 1926

SEC. 24 AMALGAMATION OF TRADE UNIONS

Any registered trade union may amalgamate with any other union(s), provided that-

• at least 50% of the members of each such union record their votes and
• at least 60% of the votes so recorded are in favour of amalgamation.
• A notice of amalgamation signed by the secretary and at least 7
members of each amalgamating union, should be sent to the registrar.
 Trade Unions Act, 1926

DISSOLUTION OF A TRADE UNION

• A notice of dissolution signed by any seven members and the secretary of

the union should be sent to the registrar within 14 days of the dissolution.
• On being satisfied the registrar shall register the notice and the union shall
stand dissolved from the date.
• The funds of the union shall be divided by the Registrar amongst dissolved
Union’s members in the manner prescribed under the rules of the union or
as laid down by the government.
 Trade Unions Act, 1926
Obligations of Registered Trade Unions

General Funds Separate Political fund

The general funds of a registered trade The trade union may set up a
union should be spent only for the separate political fund for
activities specified such as Salaries to furtherance of civic and
office-bearers; administration political interest of members.
expenses and other welfare expenses Contribution to this fund is not
for the member etc. compulsory.
 Trade Unions Act, 1926
A copy of every alteration
made in the rules of the
union should be sent to the
Registrar within 15 days of An annual statement of
making the alteration. receipts and expenditure
and assets and liabilities of
The account books the union for the year
and membership ending on the 31st
register of the union December, prepared in the
should be kept open prescribed forms and duly
for inspection by any audited should be sent to
the Registrar within the
of its office-bearers. Account prescribed time.
books and
membership
register
 Trade Unions Act, 1926
SEC. 29 POWER TO MAKE REGULATIONS
(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.
 Trade Unions Act, 1926

Legal Effects of Registration

Once a trade union is registered, it enjoys the following benefits:
Legal entity: It becomes a body corporate, meaning it can sue or be
sued in its name.
Immunity from civil suits: Section 17 provides immunity from liability
in certain torts (e.g., interference with trade, business, or
employment).
Recognition in industrial disputes: The trade union can legally
represent its members during negotiations, arbitrations, and legal
disputes.
 Trade Unions Act, 1926

Case Law: All India Bank Employees’ Association v. National Industrial Tribunal
(1962)
Facts:
The All India Bank Employees' Association (AIBEA), a prominent trade union,
challenged the National Industrial Tribunal's jurisdiction in a matter where the
employees' association was not a registered trade union under the Trade Unions
Act.
The primary contention was whether an unregistered trade union could represent
workers in industrial disputes.
Issues:
Whether an unregistered trade union has the standing to represent workers in an
industrial dispute under the Trade Unions Act.
The role of registration in conferring legal standing on trade unions for collective
bargaining.
 Trade Unions Act, 1926

Case Law: All India Bank Employees’ Association v. National Industrial Tribunal
(1962)
Judgment:
The Supreme Court held that only registered trade unions are entitled to the legal
benefits conferred by the Trade Unions Act.
It emphasized the importance of registration in giving legal recognition to the
union's right to represent workers in disputes. Without registration, the union
lacked the legal standing to approach the tribunal on behalf of its members.
Key Takeaways:
Registration under the Act is essential for a trade union to enjoy statutory
privileges.
The case reaffirmed that legal protection and recognition under industrial law are
contingent upon the union’s registration status.
 Trade Unions Act, 1926

Recognition of Trade Unions

While the Trade Unions Act, 1926 provides the framework for
registration, it does not directly govern the recognition of
trade unions. Recognition refers to the formal
acknowledgment by an employer of a trade union’s right to
represent employees for collective bargaining purposes. This
is typically governed by industrial practices and other statutes
like the Industrial Disputes Act, 1947.
 Trade Unions Act, 1926

Criteria for Recognition

Recognition is usually based on the following factors:
Majority Representation: A trade union is recognized if it
represents the majority of workers in a particular industry or
organization.
Membership Verification: The employer may require the
union to provide proof of majority membership.
Negotiation Agreements: Recognized trade unions are the
ones that engage in collective bargaining agreements (CBAs)
with the employer.
 Trade Unions Act, 1926

Rights of Recognized Trade Unions

Collective Bargaining: A recognized union has the exclusive
right to negotiate with the employer on matters concerning
wages, working conditions, and employment terms.
Right to represent: A recognized trade union can represent
employees before labor courts and tribunals in matters of
industrial disputes.
Consultation: Employers are legally required to consult
recognized unions in cases of layoffs, retrenchments, or
changes in employment policies.
 Trade Unions Act, 1926

Refusal of Recognition
Employers may refuse to recognize a trade union in
certain situations, such as:
The union does not represent a significant portion of
the workforce.
Internal conflicts between multiple unions exist within
the same organization.
 Trade Unions Act, 1926

Rights and Privileges of Registered Trade Unions

Right to Collective Bargaining: Registered trade unions are legally entitled to
engage in collective bargaining on behalf of their members.
Right to Immunity from Civil Suit: Section 17 of the Act provides immunity to
members of a registered trade union from civil suits related to strikes, peaceful
protests, or other trade union activities aimed at promoting their members'
welfare.
Right to Fundraising and Using Funds: Registered trade unions can raise funds for
legal, administrative, and social purposes. They can use funds to:
Pay for salaries, legal advice, and welfare activities.
Conduct strikes or lockouts.
Support trade union members and their families during strikes.
Criminal Immunity for Peaceful Activities: Section 18 of the Act provides that no
criminal prosecution shall lie against a registered trade union or its members for
peacefully pursuing trade disputes.
 Trade Unions Act, 1926

Liabilities of Registered Trade Unions

Obligations to Maintain Accounts: Trade unions must
maintain accurate financial accounts, including all receipts,
payments, and assets. These accounts are subject to
inspection by the Registrar of Trade Unions.
Liability for Violations: Registered trade unions can be held
liable for any unlawful acts, including illegal strikes or
lockouts. Trade unions that do not comply with statutory
requirements may have their registration revoked.
 Trade Unions Act, 1926

Case Law: National Engineering Industries Ltd. v. State of Rajasthan

(2000)
Facts:
The case involved a dispute between the National Engineering
Industries and its workers' union regarding the recognition of a newly
formed trade union.
The management refused to recognize the new union, claiming that it
did not represent a majority of workers.
Issues:
Whether the refusal to recognize a union without proper membership
verification violates workers' rights under the Trade Unions Act.
 Trade Unions Act, 1926

Judgment:
The Supreme Court held that the recognition of a trade union should
be based on majority representation.
The Court emphasized that membership verification is essential in
determining which union legitimately represents the workers. Without
proper verification, employers cannot arbitrarily refuse recognition.
Key Takeaways:
Recognition of trade unions should be based on objective criteria, such
as majority membership.
Employers must follow due process in verifying union membership
before granting or refusing recognition.
 Trade Unions Act, 1926

• What is the minimum age for becoming a member of trade union?

• ट्रे ड यूनियि का सदस्य बििे के लिए न्यूितम आयु क्या ै?
A. 18 years
B. 21 years
C. 16 years
D. 15 years
• Ans. D
 Trade Unions Act, 1926

• What is the minimum age for becoming an office bearer of trade

union as per the Trade Unions Act, 1926?
• ट्रे ड यनू ियि अधिनियम, 1926 के अिस ु ार ट्रे ड यनू ियि का
पदाधिकारी बििे के लिए न्यि ू तम आयु क्या ै?
A. 18 years
B. 21 years
C. 16 years
D. 15 years
• Ans. A
 Trade Unions Act, 1926

• The registered trade union, as per the Trade Unions Act, 1926, can
collect political fund from its members as a
• ट्रे ड यनू ियि अधिनियम, 1926 के अिस ु ार पंजीकृत ट्रे ड यनू ियि
अपिे सदस्यों से राजिीनतक निधि एकत्र कर सकता ै।
(A) General fund
(B) Separate fund from the interested members
(C) Cannot collect political fund
(D) Only from political parties
• Ans. C
 Trade Unions Act, 1926

• How many days’ notice is required to be given in case of change in

registered office of the trade union as per the Trade Unions Act,
1926?
• ट्रे ड यूनियि अधिनियम, 1926 के अिुसार ट्रे ड यूनियि के पंजीकृत
कायाािय में पररवताि के मामिे में ककतिे ददिों का िोदिस ददया
जािा आवश्यक ै?
A. 10
B. 12
C. 14
D. 16
• Ans. c
 Trade Unions Act, 1926

• How many members of each Trade Union should record their votes in
case of amalgamation of trade union?
• ट्रे ड यनू ियि के समामेिि के मामिे में प्रत्येक ट्रे ड यनू ियि के ककतिे
सदस्यों को अपिे वोि दजा करिे चादैए?
A. 30% of the members of each Trade Union
B. 40% of the members of each Trade Union
C. 50% of the members of each Trade Union
D. 60% of the members of each Trade Union
• Ans. c