The Trade Union Act

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Freedom of association is treated as a very important right under any democratic institution. It
finds a place in the democratic form of Government. However, this was not treated as a right
enjoyable by the labour till the Trade Unions were legally allowed to be formed. Any move by
the labour or working people to organize themselves was looked at as a criminal act punishable
under the criminal justice administration system. Gradually, the philosophy changed and
workers¶ organizations were recognized as acceptable organizations. The Trade Unions Act was
adopted for India in 1926. The Act provides for registration of trade unions with a view to
rendering organizations of labour as legal. The Trade Unions Act, however, did not undergo any
major change till recently although the structure of Industrial organizations and of the labour
force has undergone significant changes.
The Act aims at legitimizing the trade union movement by providing for the optional registration
of the trade unions, and giving the officers and the members of the unions certain legal
protection. Under the Act, the term µTrade Union¶ has been defined as a combination or
association of workmen, as well as that of employers, formed primarily for the purpose of
regulating the relations between the workmen and the employers, and include any federation of
two or more trade unions.
As per the recent amendment in the Act, no trade union of workmen shall be registered unless at
least 10% or 100, whichever is less, of workmen engaged or employed in the establishment or
industry with which it is connected are the members of such union on the date of making of
application for registration. In no case a union shall be registered without a minimum strength of
7 members. It is to be made clear that this Act provides for registration only and not for
recognition. Thus, recognition of trade Unions is by and large a matter of agreement between the
employer and trade union except in the State of Madhya Pradesh and Maharashtra where there is
a separate legislation in this context. However, in public undertakings recognition of unions is
accorded under the code of Discipline in Industries which is by mutual agreement, since the
court has no legal force.
A Trade Union would be entitled to registration only when the executive thereof is constituted in
accordance with the provisions of Trade Unions Act. The rules provide for the matters such as
name of the union, objects for which the union is constituted, purposes for which the general
funds of the Trade Union used, admission of ordinary members who shall be employed in an
industry and of honorary and temporary members as office bearers, the manner for amendment
of rules etc.

The Registrar of trade unions on being satisfied that the union applying for registration has
complied with all the requirements of the Act registers the union by making an entry in the
register to be maintained for this purpose and issues a certificate of registration in the prescribed
form. A certificate once issued may be withdrawn or cancelled by the Registrar for reasons such
as obtaining the certificate by fraud or mistake or where the union ceases to exist or willfully and
after notice to the Registrar, contravenes any of the provisions of the Act. But before canceling
the registration or withdrawing the same, two months previous notice in writing specifying the
ground on which it is proposed to withdraw or cancel the registration has to be given by the
Registrar to the concerned trade union.
The main benefits, which accrue to registered trade unions, are immunity from criminal
conspiracy in trade disputes and from civil suits in certain cases. Every registered trade union has
to annually send returns to the Registrar on or before the prescribed date containing particulars in
respect of all the receipts and expenditure made during the year. Together with the general
statement, the registered union is also supposed to send to the Registrar a statement showing all
changes of office bearers made by the trade unions during the year to which the general
statement refers, together with a copy of the rules of the trade unions corrected up to the date of
the dispatch thereof. Similarly, a copy of every alternation made in the rules of a registered trade
union is also to be sent to the Registrar within 15 days of making of such alternation.
Supplying false information to any members of the registered trade unions by any of the
members or to any persons intending to apply for membership is a crime under the Act and liable
to be punished with fine.
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The Trade Union Act

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