Trade Union

The expression trade union is commonly understood as an association of wage-

earning workers. It is a voluntary association of workers in a particular industry,
factory or a craft.
According to LJ. Hanson, trade union is essentially an organisation of workers.
According to NM Joshi, who is a well-known trade unionist, a trade union is
essentially an organisation of employees, not of employees, not of co-partners and
not of independent workers.
Definition of "Trade Union"
A Trade Union is any group or organization, whether temporary or permanent,
formed mainly for the following purposes:
 To regulate the relationship between workers and employers, workers and
other workers, or employers and other employers.
 To impose certain rules or restrictions on the conduct of any trade or
business.
A Trade Union can also include a federation formed by combining two or more
Trade Unions.
Exclusions:
The provisions of Chapter III of this Code do not apply to:
1. Any agreement between business partners regarding the operation of their
own business.
2. Any agreement between an employer and their employees concerning
employment terms.
3. Any agreement related to the sale of a business's goodwill or to training
in a profession, trade, or handicraft.
Summary:
A Trade Union is an organization formed to improve the relationship between
workers and employers, or to regulate business conduct. However, the rules for
Trade Unions do not interfere with certain types of agreements, such as those
between business partners, employers and their employees, or agreements
involving the sale of a business.
(zl) "Trade Union" means any combination, whether temporary or permanent,
formed primarily for the purpose of regulating the relations between workers and
employers or between workers and workers, or between employers and employers,
or for imposing restrictive conditions on the conduct of any trade or business, and
includes any federation of two or more Trade Unions:
Provided that the provisions of Chapter III of this Code shall not affect — (i) any
agreement between partners as to their own business; or (ii) any agreement
between an employer and those employed by him as to such employment; or (iii)
any agreement in consideration of the sale of the goodwill of a business or of
instruction in any profession, trade or handicraft;
Essentials of a Trade Union:
An association to be called as a trade union, must fulfil the following three
essentials:
1. There must be a combination of workers or employers,
2. There must be a trade or business,
3. The main object of the union must be to regulate the relationship between the
employers and employees and to impose restrictive conditions on the conduct of
trade or business.
In National Organisation of Bank Workers Federation of Trade Unions vs Union
of India case, the court held that when a federation of trade unions is not registered,
it is not a trade union under the act. Therefore, it is not a juristic person and it is not
competent to raise a demand on behalf of the employees, which falls within the
ambit of industrial dispute.
Criteria for registration.
Section 6 Simplified:
1. Application for Registration: Any group of seven or more workers can
apply to register a Trade Union by signing the union’s rules and following
the registration process outlined in this Code.
 2. Membership Requirement: A Trade Union of workers cannot be registered
unless at least 10% of the workers (or 100 workers, whichever is fewer)
employed in the industrial establishment or industry the union represents are
members of the union at the time of applying for registration.
3. Validity of Application: If an application for registration has been
submitted, it will not be invalid even if, after the application but before
registration, some of the original applicants (up to half of the total number)
stop being union members or formally withdraw their support from the
application.
4. Ongoing Membership Requirement: After being registered, a Trade Union
must always maintain at least 10% of the workers (or 100 workers,
whichever is fewer), with a minimum of seven workers, from the relevant
industry or establishment as its members.
Provisions to be contained in constitution or rules of Trade Union.
Section 7 Simplified:
A Trade Union can only be registered under this Code if its executive is set up in
accordance with the rules of this Code, and if its rules cover the following points:
a. Name of the Trade Union: The union must specify its official name.
b. Objectives of the Trade Union: The union must clearly state all the
purposes for which it has been formed.
c. Use of Funds: The union must specify the purposes for which its general
funds can be used, and these uses must comply with the law under this Code.
d. Member List: The union must maintain a list of its members, and there
should be sufficient facilities for office-bearers and members to inspect it.
e. Admission of Members: The union must allow workers (regardless of their
job type or category) who are actually employed in the industry or
establishment the union represents. It can also admit a limited number of
honorary or temporary members who are not workers, but these honorary
members cannot hold executive positions as per the rules.
f. Membership Subscription: Members must pay a subscription fee, as
prescribed by the rules.
 g. Member Rights and Fines: The rules must specify the conditions under
which members can receive benefits and when they might be fined or
penalized.
h. Annual General Meeting: The union must hold an annual general body
meeting for its members, where business like electing office-bearers is
conducted.
i. Election of Office-Bearers: The rules must outline how the executive
members and other office-bearers are elected every three years, how they
can be removed, and how casual vacancies can be filled.
j. Funds Management: The union must have a system in place for the safe
custody of its funds, an annual audit, and provide facilities for the office-
bearers and members to inspect the financial records.
k. Amendment of Rules: The rules must describe how the union's rules can be
amended, changed, or cancelled.
l. Dissolution of the Union: The rules must also specify how the union can be
dissolved.
This section ensures that a Trade Union has clear, organized, and legally compliant
rules regarding its structure, operations, and financial management before it can be
registered.
Registration of Trade Union and cancellation thereof.
Section 9
1. Registration of Trade Union: The Registrar will register a Trade Union if
they are satisfied that the union has followed all the necessary steps for
registration. The details of the union will be entered into a register, as
prescribed.
2. Certificate of Registration: Once the union is registered, the Registrar will
issue a certificate of registration, which serves as proof that the union is
officially registered under this Code.
3. Entry in Register: After issuing the certificate, the Registrar will record the
name and details of the Trade Union in a special register, as required by law.
 4. Existing Unions: Trade Unions that were validly registered under the Trade
Unions Act of 1926 before this Code came into effect will be considered
registered under this new Code. However, they must file a statement with the
Registrar to confirm that their executive structure and rules follow the new
Code. The Registrar will update their records accordingly.
5. Withdrawal or Cancellation of Registration: The Registrar can cancel or
withdraw the registration of a Trade Union in the following situations:
o If the union requests it.
o If the union is found violating the provisions of this Code or its own
rules.
o If the union's membership falls below 10% of workers or 100 workers,
whichever is fewer. The Registrar must give the union at least 60 days'
notice before cancelling the registration, unless the cancellation is
requested by the union itself.
6. Cancellation by Tribunal: If a Tribunal orders the cancellation of a union’s
registration, the Registrar must follow that order.
7. Reason for Cancellation: When cancelling a union’s registration, the
Registrar must record the reasons and inform the union in writing.
Appeal against non-registration or cancellation of registration.
Section 10
1. Appeal Against Refusal or Cancellation: If a person is unhappy with the
Registrar’s decision to refuse registration or cancel a union’s registration,
they can appeal to a Tribunal within a time limit set by law. If the appeal is
delayed, the Tribunal can still hear it if the person provides a valid reason for
the delay.
2. Tribunal's Decision: After hearing both sides, the Tribunal can either reject
the appeal or order the Registrar to register the union and issue a certificate,
or it can cancel the order to revoke the registration. The Tribunal will send a
copy of its decision to the Registrar.
Adjudication of disputes of Trade Unions.
Section 22 Simplified:
 1. Types of Disputes: Disputes that may arise in the following situations can
be taken to a Tribunal for resolution:
o Between two or more Trade Unions.
o Between one or more workers (who are members of a Trade Union)
and the Trade Union, regarding matters like registration,
administration, management, or election of office-bearers.
o Between one or more workers who are denied membership and the
Trade Union.
o Between a federation of Trade Unions and its office-bearers, or any
authorized representative of the federation.
An application for resolving these disputes must be made to the Tribunal that has
jurisdiction over the area where the Trade Union’s registered office is located.
2. Exclusive Jurisdiction of Tribunal: Only the Tribunal has the authority to
handle any legal matters or disputes mentioned above. Civil courts cannot
entertain such cases.
Dissolution.
Section 25 Simplified:
1. Notice of Dissolution: When a registered Trade Union is dissolved, a notice
signed by seven members and the secretary of the union must be sent to the
Registrar within 14 days. The Registrar will register the dissolution if he
confirms that it was done according to the union’s rules. The dissolution will
take effect from the date it is registered.
2. Distribution of Funds: If the union’s rules do not specify how to distribute
its funds after dissolution, the Registrar will divide the funds among the
members in a manner set by the prescribed guidelines.