Registration of Trade Unions
The Main Purpose for registration of trade unions act, 1926 is that to avoid the criminal conspiracy and protection against the civil suits, such registration is made to run the trade unions in a systematic manner. Such Protection by trade unions act was not be misused for the purpose of trade union activities.
The Trade Unions Act, 1926 came into force on June 1, 1927. The word “Indian” was removed from the act by the Indian Trade Unions (Amendment) Act, 1964, and it is now known as the Trade Unions Act, 1926.The Provisions for registration of trade unions and procedure is provided under sec. 3 to 14 of the Act, 1926.
Section 3 of Trade Unions Act, 1926 – Appointment of Registrars
The Appropriate Government shall appoint a person to be a Registrar of trade unions for each state, and also appoints a Additional and Deputy Registrars to carry, discharge and to assist the registrar, the government shall appoint such person as it thinks fit in discharging his duties as prescribed under this act
the powers and functions of additional and deputy registrar should be defined by a order, the qualifications of the registrar have not been specified, and is left to the decision by the concerned government
Section 4 of Trade Unions Act, 1926 – Mode of Registration
According to sec.4 of this act, the minimum number of 7 or more are required to register a trade union, and mention their names to the department of trade union for the provisions to register underlaid by this act
As stated in this section, the minimum members 7 are required to register was primarily found in the trade unions of UK,USA..Etc.., In the year 2001, with a view to encourage the registration of trade unions the minimum number of 7 was now increased to minimum of 10% or one hundred of workmen, whichever is less, engaged or employed in the industry.
Once the application was made but before registration, if the members of the trade union ceased to members of trade union or have given a written notice to the registrar, such reason shall be considered as ground for invalid the registration of the application.
Section 5 of Trade Unions Act, 1926 – Application of Registration
According to sec. 5 of the act, every application for registration of trade union shall be accompanied with the following particulars –
a. the names, occupations and addresses of members making application
b. the name of the trade unions and the address of its head office and
c. the titles, names, ages, addresses and occupations of the office-bearers of the trade union.
If the trade union was in force for more than a year, then the statement of assets and liabilities of trade union shall be submitted
Section 6 of Trade Unions Act, 1926 – Provisions to be contained in the rules of trade union
According to sec. 6 of the act, a trade union shall stands as not registered unless the executive is constituted in-accordance with the provisions of this act and the rules be provided for the following matters, namely –
a. the name of the trade union;
b. the objects for trade union established;
c. the purpose of the funds raised are lawfully under this act;
d. The list of members of the trade union to be maintained and facilities for inspection by office bearers and members of the trade union;
e. the persons who engaged or employed in an industry among which an ordinary members and temporary members as office bearers are required to form the executive of trade union;
ee. the minimum subscription payment by the members of trade union shall not be less than;
(i) one rupee per annum for rural workers;
(ii) three rupees per annum for workers in unorganised sectors; and
(iii) twelve rupees per annum for workers in other case.
f. any member shall be entitled to any benefit assured by the rules and member shall to entitled fine or forfeiture may be imposed upon the conditions;
g. the rules shall be amended, varied or rescinded in the manner;
h. the manner in which members of the executive and other office bearers of trade union shall be removed;
hh. the period of election of members of executive and other office bearers of the trade union, not more than 3 years
(i) the safe custody of funds, annual audit and inspection of account books of trade union by the office-bearers and its members shall be carried out in a prescribed manner; and
j. the dissolution of trade union be carried out in such manner as specified.
The high court of Allahabad in Trilok Nath Tripathi Vs. Allahabad Division Bench, AIR 1957, clearly laid down that trade union cannot be registered unless the provisions of sec.6 are clearly stated.
Section 7 of Trade Union Act, 1926 – Power to call for further particulars and to require alternation of name
under this act, trade unions are entitled to be registered unless the provisions of sec. 5 & 6 are in accordance with, if registrar is not satisfied with name proposed that the name is not so identical or resembles the other trade union existing or likely to deceive the public or member of either trade union, then the registrar under sec. 7 of this act, confers power to call applicant for further information or require any alternation of the name, therefore this section imposes responsibility on the registrar.
Section 8 of Trade Union Act, 1926 – Registration
once the provisions laid by this act were satisfied, the registrar shall register the trade union by entering the particulars of trade union in the register maintained by the registrar in a prescribed manner.
If all the statutory requirement were fulfilled by the trade union relating to registration, the registrar cannot refuse registration without any reasonable cause, in any case if the registrar does not discharge his duty in registration for more than 3 months, then the applicant can seek remedy under art.226 of indian constitution in the form writ of mandamus, this was laid down by patna high court in A.C.C.Rajanka Lime Stone Querries Mazdoor Union Vs. The Registrar.
Section 9 of Trade Union Act, 1926 – Certificate of Registration
The registrar upon registering the trade union under sec. 8 of this act, shall issue a certification of registration in prescribed manner, which shall be a conclusive proof that the trade union is dully registered under the act of 1926.
Section 9-A of Trade Union Act, 1926 – Minimum Requirement about the membership of a trade union
A registered trade union is required to maintain the membership of 10% or one hundred of workmen, whichever is less, subject to minimum of 7 seven members should be engaged or employed in the industry at all times, till the such trade union is connected.
Section 10 of Trade Union Act, 1926 – Cancellation of Registration
the registration of trade union can be cancelled or withdrawn by the registrar on certain grounds specified below
a. If the certificate of Registration is obtained by fraud or mistake
b. if the registered trade union ceases to maintain the minimum membership prescribed by this act;
c. rescinded any rule stated in sec. 6 of this act;
d. upon registering, the trade union contravened any provision of this act; or altered any rule which is inconsistent with this act
The Registrar should give a written notice not less than 2 months to the trade union specifying the reason for such action.
Section 11 of Trade Unions Act, 1926 – Appeal
this section lies down certain provision for an appeal against the action of registrar regarding the refusal of registration or withdrawal or cancellation of trade union
a. the head office of trade union is located within the limits of presidency town, appeal can directly be preferred to high court and if;
b. the head office of trade union is located within the limits of labour court or industrial tribunal, appeal can be directed to labour court or industrial tribunal; and
c. if the head office of trade union is located within other area but within the jurisdiction of court, the appeal can be directed, not inferior to court of additional or assistant judge of a principal civil court of original jurisdiction.
Section 12 of Trade Unions Act, 1926 – registered Office
this section stated that all communications and notices may be addressed to the registered office of trade union, in case of change of address of trade union has to be notified to registrar within 14 days of such change of address
Section 13 of Trade Unions Act, 1926 – Incorporation of Registered Trade Unions
This section confers a legal status of trade union upon registration under this act, and be availed to the benefits and acquires the powers as prescribed by this act, namely
1. Be a body of corporate under its registered name
2. Shall avail a perpetual succession and a common seal
3. Power to acquire movable and immovable property
4. Right to enter into contract; and
5. Right to sue and be sued under its registered name.
The unregistered trade unions can not be confer such a legal status under this act and is not entitled to such benefits
Section 15 of Trade Unions Act, 1926 – Objects of which general funds may be spent
This section states that the general funds of registered trade union shall not be spent on any other objects except stated below,
1. Salaries, allowances and expenses of trade union;
2. Expenses for administration of trade union;
3. Legal proceeding of the aggrieved party of the trade union;
4. Trade disputes between trade union or any member;
5. Compensation for the losses out of trade disputes;
6. Allowances to defendants of members of trade union on account of death, sickness, accidents;
7. Educational, religious or social benefits to members;
8. Meeting at a regular interval of time regarding the issues affecting the workmen or employers;
9. The expenses of financial assistance to workmen or employers shall not be in excess of 1/4th of gross income of general funds of trade union during a year
10. Subjected to any conditions later on notified by the concerned government in official gazette.
Section 16 of Trade Unions Act, 1926 – Constitution of separate fund for political purposes
A registered trade union shall allocate a separate fund for political activities to promote civic and political interest of its members, this section makes it clear that the political fund can be spent, such objects of spending the fund is for payment of expenses for election by any candidate or any authority of any legislative body.
The contribution to political fund can not be made compulsory to any member of trade union, such non-contributing member cannot avail for any protection, but the contribution towards political fund should not be made a ground for admission to membership of trade union
Section 17 of Trade Unions Act, 1926 – Criminal Conspiracy in Trade disputes
This section enumerates that protection needed for registered trade union against the punishment for the offence of criminal conspiracy. Such Protection is granted to the trade unions under 2 important aspects or conditions.
The primary aspect, any officer or member of registered trade union is not liable for punishment under sub-section (2) of sec.120-B of IPC. Thus it should be noted that protected against sub-sec (2) of sec 120-B and not against the sub-sec (1).
Secondary aspect, the agreement between the members of a registered trade union for the purpose of such objects stated in sec.15 of the act. It means that the agreement between the parties shall be only for legitimate and lawful activities as clearly stated in sec.15.
Section 18 of Trade Unions Act, 1926 – Immunity from civil suit in certain cases
sub.sec (1) of sec. 18 of this act states that immunity against the trade union or its member against the such acts done in contemplation of furtherance of trade dispute is the only ground which induces the other person in breach of employment, or that interference of trade, business or employment of other person or with right of some other person to dispose of his capital of his labour as he wills.
the immunity is against the acts done by its member for contemplation or furtherance of trade dispute which results only in breach of employment or interference of employment or dispose of capital of labour, means that activities shall not be lawful such as threat, violence or any other illegal activity under which a suit can be maintainable, otherwise not.
sec.18 (2) provides immunity against the tortious liability that means, acts done by its agent or members of trade union will make trade union liable.
In general sense, during the conduct of strike the members or some times outsiders resort to violence, during which the immunity is granted, such immunity is subjected to, if the members or agents acted without their knowledge or acted under the instructions given by the executive of trade union.
In the case ‘ Simpson & group companies workers & staff union Vs. Amco Batteries Ltd ‘ the karnataka high court in the case laid down that trade union does not enjoy immunity from illegal acts if its members cause interference in free movement of men and material of the employer.
Section 19 of Trade Unions Act, 1926 – Enforceability of agreements
This is Interesting provision under this act, The Agreement between the members of registered trade union shall not be void or voidable in restraint of trade, which is otherwise void or voidable under indian contract act, 1872.
It is to be noted that claim of damages or compel any member to sell or not to sell their goods, transact business, work, employ or be employed is not enforceable in any civil court, simply the agreements in restraint of trade are allowed but not enforceable in any civil court.
Section 20 of Trade Unions Act, 1926 – Right to Inspect books of Trade union
The account books of registered trade union and list of members shall be open for inspection by an office bearer or member of trade union at such time as may be provided for in the rules of the trade union.
Section 21 of Trade Unions Act, 1926 – Right to minors to membership of Trade union
This section states that a person who attains age of 15 years can join a trade union, but subjected to instrument or undertake responsibility of a member of trade union and such minor cannot become officer-bearer of registered trade union.
Section 21-A of Trade Unions Act, 1926 – Disqualifications of office-bearers of Trade Unions
(i) he has not attained age of 18 years ;
(ii) he has been convicted by a court of india for involving moral turpitude and sentenced to imprisonment unless a period of 5 years has elapsed since his release.
These are conditions are bar for disqualifications for a person for being as office bearer of trade union
Section 22 of Trade Unions Act, 1926 – Proportion of office-bearers to be connected with the industry
At least half of the office-bearers of every registered Trade Union in an unrecognized sector must be persons actually engaged or employed in the industry with which the Trade Union is connected. This ensures that the union’s leadership reflects the interests of the workers.
Section 23 of Trade Unions Act, 1926 – Change of Name
This section lays down that an registered trade union may change its name with the consent of its members not less than 2/3 of its total members by giving notice to registrar with manner specified under sec. 25 of this act.
Section 24 of Trade Unions Act, 1926 – Amalgamation of Trade Union
This section stated that two or more registered trade unions may become amalgamated together as one trade union with or without dissolution or division of funds provided that atleast 1/2 of its members entitled to vote are recorded and 60% of such votes in favour of the proposal.
Section 25 of Trade Unions Act, 1926 – Notice of change of name or amalgamation
This section states that
Notice in writing with which is duly signed by secretary and 7 member of trade union shall to sent to registrar for changing the name, in case of amalgamation by two or more trade union also be signed by secretary and 7 member of each and every trade union shall be sent to registrar within jurisdiction of head office of amalgamated trade union is located.
If the registrar satisfies that proposed name is not identical or resembles the name of existing registered trade union or is likely to deceive the public or member of trade union as per said in sec. 25 (2). If the name proposed is identical and then registrar shall register the name in the register maintained by him under laid down in sec. 8.
Section 26 of Trade Unions Act, 1926 – Effects of change of name and amalgamation
This section laid down that either change of name and amalgamation of any trade union shall not lose its rights and escape from liabilities.
Section 27 of Trade Unions Act, 1926 – Dissolution
The Registered Trade union upon deciding to dissolve the trade union, mandatory provisions must be followed and a notice shall be sent to registrar as prescribed manner within 14 days of such dissolution.
upon registration for dissolution, the funds of concerned trade union shall be distributed in the manner prescribed. If absence of such distribution of funds, the registrar shall distribute the funds as prescribed.
Section 28 of Trade Unions Act, 1926 – Returns
Every Registered Trade union shall submit a annual returns, on or before the date fixed, failing a submit the returns when after the notice from registrar which lead to cancellation of registration.
Annual Return includes :
(i) statement of all receipts and expenditure;
(ii) changes of office bearer made by trade union;
(iii) change in rules of trade union;
(iv) change of office bearer and change in rules of Trade union are required to maintained as prescribed in sec. 6 and informed to registrar within 15 days of the change.
