The trade unions act,1926

THE TRADE UNIONS ACT,1926

OBJECTIVES OF TRADE UNIONS

O To improve condition of work, life and status of

the workers in industry and society.

O To secure a living wage for every worker in

normal employment and bring about a

progressive improvement in his standard of

life.

O To regulate hours and other conditions of

work.

O Laying down obligations of a registered trade

union.

O Fixing rights and liabilities of registered trade

unions.

Applicability of the Act

O Extends to the whole of India. Applies to unions of

workers and also associations of employers.

O Does not apply to registered trade union of

O Societies Registration Act, 1860

O Co-operative Societies Act, 1912

O The Companies Act, 1956.

O The respective registrars are appointed by both the

State and the Central Government.

Definitions Under The Act

O Executive

O Office – Bearer

O Registered Office

O Registrar of Trade Union

O Trade Dispute

O Workmen

O Trade Union

General Scheme of the Act.

33 sections and 5 chapters.

O Chapter 1 deals with the title, extent and

commencement of the Act, along with important

definitions (Sec 1 & 2).

O Chapter 2 discusses the various aspects of

registration of trade unions, appointment of

registrars, mode of registration, submission of

application for registration, making appeals..

(Sec 3-14).

O Chapter 3 describes the rights and

liabilities of registered trade unions (Sec

15-28)

O Chapter 4 deals with powers to make

regulations (Sec 29 & 30).

O Chapter 5 deals with consequence of

failure to submit returns (Sec 31 - 33).

REGISTRATION OF A TRADE UNION

SECTION4:MODE OF REGISTRATION

O Minimum 10% of the workmen employed in

an industry or an establishment where the

trade union is proposed to function or 100

workmen, whichever is less.

–by subscribing their names to the rules of the

Trade Union.

–and by complying with the provisions of this

Act with respect to registration.

Section5:Application of Registration

O Application for registration of a Trade Union shall be made to the Registrar and shall be accompanied by:

–copy of the rules of the Trade Union

–statement of the following particulars, namely:-

• The names, occupations and addresses of the members making the application.

• The name of the Trade Union and the addresses of the occupations of the office-bearers of the trade union.

• General statements of assets and liabilities of the union may be required.

Section6:Provision to be

Contained in the Rules

OEvery registered trade union is required

to have written rules dealing with

certain matters specified in Schedule II

of the Central Trade Unions

Regulation,1938.

Section 7:Power to ask for

alteration of name and further

clarificationOThe Registrar of trade union is

empowered to ask the union to alter its

name, if it is identical with that of the

any registered union.

Section 8:Registration

OThe Registrar on being satisfied that the

trade union has complied with all the

requirements of the Act in regard to

registration, will register the trade union

within in a period of sixty days from the

date of such compliance, by recording

its particulars in a register.

Section 9:Certification of

Registration

OThe Certification of Registration is

issued by the Registrar of Trade

Union on registering a trade union

which shall be conclusive evidence

that the trade union has been duly

registered under this Act.

Section 10 : Cancellation of

RegistrationOAs a registration certificate is issued by

the Registrar of Trade Unions, it may

also be withdrawn or cancelled by the

registrar.

Section 11 :Appeal

OAny person aggrieved by any refusal

for the Registrar to register a trade

union ,or by the withdrawal or

cancellation of a certificate of

registration, may prefer an appeal

within sixty days of the date on which

the Registrar passed the order against

which the appeal is preferred.

Re–registration of a trade union

(section 11 and 11A)

O A trade union whose certificate of registration has been

cancelled may apply for re-registration to the registrar

after the expiry of a period of six months from the date

of such cancellation.

Registered office and change in it

(section 12)

OAll communications and notices to a

registered trade union may be addressed

to its registered office.

Section 13 : Incorporation of

Registered Trade Unions

Every registered Trade Union

a) shall be a body corporate by the name under

which it is registered

b) shall have a perpetual succession and a

common seal with the power to acquire both

movable and immovable property

c) has power to contract and

d) shall by the said name sue and be sued.

Section 14 : Acts which do not apply to

Registered Trade Unions

O The Societies Registration Act, 1860

O The Co-operative Societies Act, 1912

O The Companies Act, 1956

Section 15: Duties and Liabilities

O A registered trade union is required to

Give notice of change in the address of its

registered office.

Maintain a general fund.

Separate fund for political purposes.

Section 16: Maintenance of Political Fund

O The trade union may constitute separate fund

from contributions and collections.

O This fund can be utilised for the promotion of the

civic or political objectives of its members.

O Can be used for elections of the candidate, or

any other local authority, meeting or distribution

of any literature or documents.

O Maintenance of a person.

O Registration of electors or selection of a

candidate.

O Holding of political meetings.

Section 17: Protection from criminal conspiracy

O This section of the Act protects trade

unionists from criminal conspiracy where

the agreement into which they have

entered is not an agreement to commit an

offence.

O Peaceful strike is permitted.

Section 18: No suit or illegal proceedings

O “No suit or illegal proceedings shall be maintainable

in any civil court against any registered Trade Union

or any office bearer or member thereof in respect of

any act done in contemplation or furtherance of

trade dispute to which a member of a Trade Union

is a party on the ground only that such act induces

some other person to break a contract of

employment or that it is an interference with the

trade, business or employment of some other

person or with the right of some other person to

dispose of his capital or his labour as he wills”

Section 19: Enforceability of Agreement

O An agreement between the members of

registered trade union in restraint of trade

shall not be void or voidable.

Section 20: Right to inspect books

O The officer or member of the trade union

has the right to inspect the books the

trade union.

Section 21: Right of Minors to membership

O Person who has attained the age of 15

years, may be a member of the registered

trade union and enjoy all the privileges of

such membership.

Section 21 (A): Disqualification of Office Bearers

O If he has not attained the age of 18 years.

O If he has been convicted by a court of

India of any offence and sentences to

imprisonment, unless a period of 5 years

has elapsed since his release.

O He has been convicted of any offence

under the Industrial Disputes Act. 1947.

Section 23: Change of name

O Every registered trade union can change

its name by a resolution passed by two

thirds of members by the union in a

general meeting.

O Registrar must be intimated.

Sections: 24 – 27.Amalgamation and Dissolution of

Trade UnionO Sec 24: Amalgamation – Any two or more

registered trade unions may be amalgamated

as one trade union with or without dissolution

or division of funds, provided that the votes of

atleast one – half of the members of each

trade union entitled to vote are recorded and

that atleast 60 percent of the votes recorded

are in favor of the proposal.

O Sec 25: If the Registrar is satisfied, that

the provisions of the Trade Unions Act in

respect of amalgamation have been

compiled with that of the trade union

formed is entitled to registration, he will

register the trade union.

O Sec 26: Change in the name of the

registered trade union shall not affect any

rights or obligations of the trade union.

Section 27: Dissolution of registered Trade Union

O If a registered trade union is dissolved,

notice of the dissolution, signed by 7

members and by the secretary of the

trade union shall, within 14 days of the

dissolution be sent to the Registrar and

shall be registered by him.

Section 28: Submission of Returns

O The Trade Union is require to send to the

Registrar, on or before such date as may

be prescribed, a general statement of the

receipts and expenditure of the union

during the year ending December 31 of

the previous year, audited in the

prescribed manner as on March 31.

Till September,

Auditing report can be

completed.

Section29 - 30: Power to make Resolution

O The Trade Unions Act empowers the

appropriate government to make

regulations for the purpose of carrying into

effect the provisions of the Act.

O This delegated power is to be exercised

by the appropriate government without

effecting the general power granted under

the Act.

Section 31 - 33: Penalties and Procedures

O Under this section, the Registrar of the

Trade Unions is empowered to impose

penalty on the trade union for default in

submitting returns or for supply of false

information.

Section 31: Failure to submit Returns

O A) failure to give notice

O B) failure to send any return

O C) failure to send any documents

O Fine of Rs. 25.

O In case of a continuing default, additional

fine extending to Rs. 25 may be imposed for

each week after the first week during which

the default continues.

O But in no case, the total fine shall exceed

Rs. 500.

Section 32: Supplying false information

O Any person with an intent to deceive gives,

O 1) to any member of a registered trade union, or

O 2) to any person including or applying to become a member

of such trade union, or

O 3) any alterations of the rule,

O Which he knows or has a reason to believe that it is not a

correct copy of rules of alteration as are for the time being in

force, shall be punishable with fine which may extend to Rs.

200.

O Fine of Rs. 200, to the person who intents to give a copy of

rules of unregistered trade union to any person.

Section 33: Cognizance of Offence

O Any offence under this Act cannot be tried

by a court inferior to that of Metropolitan

Magistrate or a Judicial Magistrate.