The Trade Unions Act, 1926

The Trade Unions Act, 1926The act was passed to regulate

Conditions governing the registration of trade unions;Obligations imposed upon a registered trade union; andRights and liabilities of registered trade unions.

The Act applies to registered trade unions.

It also specifies the mode of their registration.

Definitions Appropriate Government (Sec.2)- in relation to trade unions whose objects are not confined to one State, the appropriate Government means the central government. In relation to other trade unions, the appropriate government means the state government.

Executive [Sec. 2(a)]- means the body, by whatever name called, to which the management of the affairs of a trade union is entrusted.

Trade dispute [Sec. 2(g)]- it means any dispute- Between employers and workmen, orBetween workmen and workmen, or Between employers and employers which is connected with (i) the employment or non-employment, or (ii) the terms of employment, or (iii) the conditions of labour of any person.

Workmen means all persons employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises

Trade Union [Sec. 2(h)]- it means any combination, whether temporary or permanent, formed-Primarily for the purpose of regulating the relationsBetween workmen and employers, orBetween workmen and workmen, orBetween employers and employer, orFor imposing restrictive conditions on the conduct of any trade or business.

Registered trade union [Sec. 2 (e)]- means a trade union registered under the Act.Acts not to apply to registered trade unionsThe following acts do not apply to registered trade unions:

The Societies Registration Act, 1860The Co-operative Societies Act, 1912; andThe Companies Act, 1956

The registration of any trade union under these Acts is void.Appointment of registrarsState government appoints The Registrar of Trade Unions for the State. [Sec. 3(1)]

It may also appoint Additional and Deputy Registrars of Trade Unions. [Sec. 3(2)]

The state government defines the local limits within which they shall exercise and discharge the powers and functions as specified. [Sec. 3(2)]

Registration of Trade UnionsMode of Registration (Sec. 4)

Application for registration

Any 7 or more members of a trade union, may, apply for its registration [Sec. 4(1)]

Applicants ceasing to be members or dissociating not to affect application unless their number is more than half

Some of the applicants may cease to become members or may dissociate themselves by giving a notice to the Registrar.In such a case, the application does not become invalid merely because of this fact.However, if the number of applicants ceasing to be members exceeds half of the total number of persons, the application becomes invalid.Application for registration to Registrar (Sec. 5)

Application made to the registrar must be accompanied by a copy of its rules and a statement of the following particulars:

The names, occupations and addresses of the members making the application;The name of the trade union and address of its head office; andThe titles, names, ages, addresses and occupations of the officers of the trade union [Sec. 5(1)]

If a trade union has been in existence for more than 1 year before making an application, a general statement of its assets and liabilities should be submitted to the Registrar along with the application [Sec. 5(2)].Rules of trade union (Sec. 6)- a trade union is entitled to registration only if its executive is constituted in accordance with the provisions of this act and its rules provide for the following matters:

Name of the Trade Union

The whole of its objects

The whole of the purposes for which the general funds of the TU shall be applicable under Sec. 15

The maintenance of a list of the members of the TU and adequate facilities for the inspection thereof by the office-bearers and members of the TU

The admission of ordinary members who shall be persons actually engaged or employed in the industry with which the TU is connected, and also the admission of the number of honorary or temporary office-bearers to form the executive of the TUThe payment of subscription by the members of the TU which shall not be less than 25 paise per month per member

The conditions under which any members shall be entitled to any benefit assured by the rules and conditions under which fines may be imposed on the members

The manner in which the rules shall be amended, varied or rescinded

The manner in which the members of the executive and other office-bearers of the TU shall be appointed and removed

The safe custody of the funds of the TU, and annual audit of the accounts thereof, and facilities for inspection of the account books by the office bearers and members of the TU

The manner in which the TU may be dissolvedPower to call for further particulars and to require alteration of name (Sec. 7)

Registrar may call for further information to confirm that an application complies with the provisions of Sec.5 and Sec. 6

If the name of the TU proposed to be registered is identical with any other existing TU, the Registrar shall require the applicants to alter the name of the TU stated in the application

Registration (Sec. 8)- on being satisfied with all the requirements, the Registrar shall register the TU.

Certificate of Registration (Sec. 9)- the Registrar shall issue a certificate of registration which shall be a conclusive evidence that the TU has been duly registered under the Act

Characteristics of registered TU on incorporation (Sec. 13)-

It becomes a body corporate by the name under which it is registered, and becomes a legal entity distinct from the members of which it is composed

It has perpetual succession and a common seal

It has the power to acquire and hold both movable and immovable properties

It has the power to contract

It can by the name under which it is registered sue and be suedChange of name (Secs. 23, 25, and 26)

Any registered TU, with the consent of not less than 2/3rds of total number of its members change its name (Sec. 23)

Notice in writing signed by the Secretary and the 7 members of the TU shall be sent to the Registrar [Sec. 25(1)]

If the proposed name is not identical with any existing TU the Registrar shall change the name of the TU [Sec. 25(2)]

The change of name shall have effect from the date of such registration [Sec. 25(3)]

The change in name does not affect any rights or obligations of the TU or render defective any legal proceeding by or against the TU [Sec. 26(1)]Registered office (Sec. 12)-

All communication and notices may be addressed to the registered office

Notice of any change shall be given within 14 days to the Registrar in writing

Who may become members (Sec. 21)

Any person who has attained the age of 15 years

One can be an office bearer of a TU only when attains the age of18 years

It is only persons engaged in trade or business who can form a TU or become members of a TUCancellation of registration & appealCancellation of registration (Sec. 10)

On the application of the TU to be verified in the prescribed manner

If the Registrar is satisfied that certificate has been obtained by fraud or mistake

If the Registrar is satisfied that the TU hasCeased to existWilfully contravened any provisions of the ActAllowed any rule to continue in force, which is inconsistent with the provisions of the ActRescinded any rule which ought to be there

In cases (b) & (c), the Registrar has to give the TU not less than 2 months pervious notice in specifying the reasons for cancellation of registrationRights & Privileges of a registered TUBody corporate (Sec. 13)

Separate fund for political purposes (Sec. 16)

Immunity from punishment for criminal conspiracy (Sec. 17)

Immunity from civil suits (Sec. 18)

Enforceability of agreements (Sec. 19)

Rights to inspect books of trade union (Sec. 20)

Right of minors to be members (Sec. 21)Duties & Liabilities of a registered TUChange of registered office (Sec. 12)

Objects on which general funds may be spent (Sec. 15)

Constitution of a fund for political purposes (Sec. 16)

Proportion of officers to be connected with the industry (Sec. 22)

Returns (Sec. 28)

Disqualifications of office-bearers of TU (Sec. 21-A)Amalgamation of trade unions (Secs. 24 to 26)Amalgamation (Sec. 24)

Notice of amalgamation (Sec. 25)

Effect of amalgamation (Sec. 26)Dissolution of trade unionNotice of dissolution, signed by 7 members and by the secretary of the TU shall be sent to the Registrar

Notice to be sent within 14 days of dissolution

If the Registrar is satisfied that the dissolution is in accordance with the rules of TU, he shall register such dissolution

Dissolution shall take effect from the date of such registrationPenaltiesFailure to submit returns (Sec. 31)

Supplying false information regarding TU (Sec. 32)

Cognizance of offences (Sec. 33)