Trade Unions under Industrial Relations Code 2020
Trade Unions in India
Trade unions under Industrial Relations Code, 2020
What is a Trade Union?
Under the IR Code 2020, a Trade Union is any group of workers or employers formed to regulate relations among themselves or with each other. This includes federations of multiple unions, acting as a unified voice for collective bargaining and protecting member interests.
Who is a Worker?
The definition is broad, covering anyone in skilled, unskilled, manual, technical, or clerical roles. However, it excludes those in managerial or administrative positions, and supervisors earning more than ₹18,000 per month.
The Journey to Legal Recognition: Registration
Key Registration Steps
Application & Subscription
An application, subscribed by at least 7 members and including the union’s rules, is submitted to the Registrar.
Membership Threshold
The union must represent at least 10% of the workforce or 100 workers (whichever is less), with a minimum of 7 members at all times.
Certificate Issued
Once requirements are met, the Registrar issues a Certificate of Registration, making the union a legal corporate body.
What’s in the Rulebook?
The application must include a copy of the union’s rules, which act as its constitution. Key provisions must cover:
- › Union’s name and objectives.
- › Purpose and use of general funds.
- › Membership admission and conditions.
- › Appointment of office-bearers.
- › Process for amending rules and dissolution.
- › Annual audit and fund custody procedures.
Powers & Responsibilities
Rights of a Registered Union
- ✔ Becomes a legal entity with a common seal.
- ✔ Can acquire, hold, and sell property.
- ✔ Can sue and be sued in its own name.
- ✔ Right to collective bargaining for members.
- ✔ Can establish general and political funds.
Liabilities of a Registered Union
- ✖ Must maintain proper account books and member lists.
- ✖ Must file audited annual returns with the Registrar.
- ✖ Union funds can only be spent on specified objects.
- ✖ Liable to members for any benefits promised in its rules.
Legal Protections
🛡️ Immunity from Criminal Conspiracy
Members and office-bearers are protected from criminal conspiracy charges for agreements made to pursue legitimate union objectives, as long as the act itself is not an offence.
🛡️ Immunity from Civil Suits
A union is protected from civil lawsuits for actions taken in furtherance of a trade dispute, such as inducing a breach of employment contract or interfering with business operations.
The New Era of Negotiation
The IR Code 2020 streamlines collective bargaining by establishing a clear system for recognizing a negotiating agent, aiming to reduce inter-union conflicts.
Sole Negotiating Union
In an establishment with multiple unions, one can be recognized as the sole negotiator if it has the support of at least 51% of workers.
Negotiating Council
If no single union meets the 51% threshold, a council is formed with representatives from all unions that have at least 20% worker support.
Decision Flow
- Is there only one Trade Union?
→ It is the sole negotiator. - If multiple unions, does one have >51% support?
→ It is the sole negotiator. - If no union has >51% support?
→ A council is formed from unions with >20% support.
Union Lifecycle Events
Amalgamation & Dissolution
Two or more unions can merge (amalgamate) into one, requiring a specific voting process. Unions can also be dissolved according to their internal rules, with notice given to the Registrar.
The voting procedure for amalgamation is strict to ensure member consensus before such a significant structural change is approved.
