CHAPTER : XIII

TRADE UNIONS
AND
INDUSTRIAL RELATIONS
176.Trade unions of workers and
employers :
Subject to the provisions of this Chapter-
.

(a) Workers, without distinction whatsoever,

shall have the right to form trade union
primarily for the purpose of regulating
the relations between workers and
employers or workers and workers and,
subject to the constitution of the union
concerned, to joint trade union of their
own choosing ;
(b) Employers, without distinction whatsoever,
shall have the right to form trade union
primarily for the purpose of regulation the
relations between employers and workers or
employers and employers and, subject to the
constitution of the union concerned, to join
trade union of their own choosing; and
(c) Trade unions of workers and employers shall
have the right to form and join federations and
any such union and federation shall have the
right to affiliate with any international
organization and confederation worker’s or
employers organizations.
(d) Trade unions and employers
associations shall have the right to draw
up their constitutions and rules, elect
their representatives in full freedom, to
organize their administration and
activities and to formulate their
programmers.
177.Application for registration :

Any trade union may under the

signature of its president and
secretary, apply for registration of
the trade union to the Trade unions
of the concerned area under this
Chapter.
178.Requirements for application :

(1) An application for registration of a trade

union shall be made to the Director of
Labor or to the Officer authorized in this
behalf-

(2) The application shall be accompanied by -

a) A statement showing:
i. The name of the trade union and the of its head
office;
ii. Date of formation of the union;
iii. The names, ages, addresses, occupation & the
posts in the union of the officers trade union;
iv. Statement of total paid membership;
v. The name of the establishment to which Trade
union relates and the total number of workers
employed or engaged therein;
vi. In case of a federation of trade unions names,
addresses and registration numb member-
unions;
(b)Three copies of the constitution of the trade
union together with a copy of the resolution
by the members of the trade union adopting
such constitution the signature of the
Chairman of the meeting;
(c) A copy of the resolution of trade union
members of the union authorizing its
President and Secretary to apply for its
registration; and
(d) In case of a federation of trade unions a
copy of resolution from each of the
constituent union agreeing to become a
member of the federation.
(3) The Director of Labor or the officer
authorized in behalf shall, on receipt of an
application under sub-section(1), send a
copy thereof along with the list of officers of
union, to the employer concerned for
information.

Provided that in case where the applicant is

a federation trade unions, a public notice
showing the names of the officer of the trade
union shall be published at the expenses of
the applicant.
179.Requirements for registration :
(1) A trade union is not be entitled to
registration under this Chapter unless
constitution thereof provides for the
following matters, namely;
(a)The name and address of the trade
union;
(b)The objects for which the trade union
has been formed;
(c) the manner in which a worker may
become a member of the trade union
specifying therein that no worker shall be
enrolled as its member unless he applies
in the form set out in the constitution
declaring that he is not a member of any
other trade union;

(d)The sources of the fund of the trade union

and statement of the purposes for which
such fund shall be applicable;
(e) the conditions under which a member
shall be entitled to any benefit assured by
the constitution of the trade union and
under which any fine or forfeiture may be
imposed on him;
(f) The maintenance of a list of the member
of the trade union and of adequate
facilities for the inspection thereof by the
officers and members of the trade union;
(g) The manner in which the constitution shall
be amended, varied or rescinded;
(h) The safe custody of the funds of trade
union, its annual audit, the manner of
audit and adequate facilities for
inspection of the books of account by the
officers and members of trade union;
(i) The manner in which the trade union may
be dissolved;
(j) The manner of election of officers by the
general body of the trade union and the
term, not less than two years and not
exceeding three years, for which an
officer may hold office;
(k) The number of members of the executive
which shall not be less than five and more
than thirty five as may be prescribed by
rules;
(l) The procedure for expressing want of
confidence in any officer of the trade
union; and
(m) The meetings of the executive and of
the general body of the trade union, so
that the executive shall meet at least once
in every three months and the general
body at least once every year.
(2) A trade union of workers shall not be entitled to
registration under this Chapter unless it has a
minimum membership of thirty percent of the
total number of workers employed in the
establishment in which it is formed;
Provided that more than one establishments
under the same employer, which are allied to
and connected with the another for the
purpose of carrying out the same industry
irrespective of their place shall be deemed as
one establishment.
(3) Where any doubt or dispute arises as to whether
any two of more establishments are under the
same employer or whether they are allied to or
connected with one another for the purpose of
carrying on the same industry the matter may be
referred to the Director of Labor for decision.
(4) Any person aggrieved by a decision of the
Director of Labor under sub-section (3) may,
within thirty days of the decision, prefer an
appeal to the Labor Court; and the decision of
the Labor Court shall be final.
(5) Not more than three trade unions shall be
registered in any establishment.
182.Registration :
(1) The Director of Labor, on being satisfied
that a trade union has complied with all
the requirements of this Chapter, shall
register the trade union in a prescribed
register and issue a registration
certificate in the prescribed form within a
period of sixty days from the date of
receipt of the application for registration.
(2) If the Director of Labor finds the application to
be deficient in any material respect, he shall
communicate in writing his objection to the
trade union within a period of fifteen days from
the receipt of the application and the trade
union shall reply thereto within a period of
fifteen days from the receipt of the objection.
(3) When the objection raised by the Director of
Labor has been satisfactorily met, the Director
of Labor shall register the trade union as
provided in sub-section (1) The objection is not
met satisfactorily he shall reject the application.
(4) When the application has been rejected
or the Director of Labor has, after
settlement of the objection delayed
disposal of the application beyond the
period of sixty days provided in sub­
section (1), the trade union may, within a
period of 30 days from the date of such
rejection or the date of expiry of such
period. Whichever is earlier, appeal to
the Labor Court.
(5)The Labor Court, after hearing the appeal,
for reasons to be stated in its judgment may
pass an order directing the Director of
Labor to register the trade union and to
issue a certificate of registration within a
period of seven days from the date of order
or may dismiss the appeal.
(6)Any party aggrieved by the judgment
passed by the Labor Court under sub-
section (5) may prefer appeal to the Labor
Tribunal within 30 (thirty) days from the
date of receipt of the order of the Labor
court.
187.President, etc. not to be transferred :

Neither the President nor the General

Secretary, Organizing Secretary or
Treasurer of any trade union shall be
transferred from one district to another
without his consent.
189.Certificate of registration :

The Director of Labor, on registering a

trade union under section 182. Shall
issue a certificate of registration in the
prescribed form which shall be
conclusive evidence that the trade union
has been duly registered under this
Chapter.
190.Cancellation of registration :
(1) Subject to the other provisions of this
section, the registration of a trade union
may be cancelled by the Director of
Labor if the trade union has -
a) Applied for cancellation of registration:
b) Ceased to exist:
c) Obtained registration by fraud or by
Misrepresentation of facts;
d) Contravened any of the basic
provisions of its constitution;
e) Committed any unfair labor practice:
f) A membership which has fallen
short of the number of membership
required under this Chapter; and
g) Contravened any of the provisions
of this Chapter or the Rules
(2) Where the Director of Labor is satisfied
on enquiry that the registration of a trade
union should be cancelled, he shall
submit an application to the Labor court
praying for permission to cancel such
registration.
(3) The Director of Labor shall cancel the
registration of a trade union within thirty
days from the date of receipt of a
permission from the Labor court.
(4) The registration of a trade union shall not
be cancelled on the ground mentioned in
sub-section (1) (e) if the unfair labor
practice is not committed within three
months prior to the date of submission of
the application to the Labor Court.
191.Appeal against permission, etc. :
(1) Any person, grieved by an order of the
Labor court granting the prayer for
permission to cancel registration of a trade
union or rejecting prayer under section 190
or by an order of cancellation of the
registration of a trade union made by the
Director of Labor under that section may,
within thirty days from the date of the order,
appeal to the Tribunal and the decision of
the Tribunal thereon shall be final.
192.No trade union to function
without registration:
(1) No Trade union which is unregistered or
whose registration has been cancelled
shall, subject to section 191(2), function
as a trade union.
(2) No person shall collect any subscription,
other than enrollment fee, any fund of a
trade union mentioned in sub­section (1)
194. Incorporation of Registered
Trade Union :
(1) every registered trade union shall be a
body corporate by the name under which
it is registered, shall have perpetual
succession and a common seal and the
power to contract and to acquire, hold
and dispose of property, both movable
and immovable, and shall by the said
name sue or be sued.
(2) The Societies Registration Act. 1860
(XXI of 1860), the Co­operative
Societies Ordinance, 1985
(Ordinance I of 1985) and the
Companies Act, 1994 (XVIII of
1994), shall not apply to any
registered trade union and the
registration of any trade union under
any of these Acts shall he void.
 X 198 Immunity from Civil Suit
inCertain Case :
(1) No suit or other legal proceedings shall be
maintainable in any Civil Court against any
trade union or collective bargaining agent
or any officer or member thereof in respect
of any action done in contemplation or
furtherance of an industrial dispute to
which the trade union is a party on the
ground that -
(a) such act induces some other person to
break a contract of employment, or

(b) such act or deed is an interference with

the trade, business or employment of
some other person or

(c) such act interferes with the right of

some other person to dispute of his
capital or of his labour as he wills.
(2) A trade union shall not be liable in any
suit or other legal proceedings in any civil
court in respect of any tortuous act done
in contemplation or furtherance of an
industrial dispute by an agent of the
trade union if it is proved that such
person acted without the knowledge of,
or contrary to express instructions given
by the executive of the trade union.
202.Collective bargaining agent :

(1) Where there is only one trade

union in an establishment, that
trade union shall, be deemed to
be collective bargaining agent
for such establishment.
(2) Where there are more trade unions than
one in an establishment, the Director of
Labor shall, upon an application made in
this behalf by any such trade union or by
the employer, hold a secret ballot, within
a period of not more than one hundred
and twenty days from the date of receipt
of such application, to determine as to
which one of such trade unions shall be
the collective bargaining agent for the
establishment.
(3) Upon receipt of an application under sub-
section (2), the Director of Labor shall, by
notice in writing call upon every trade
union in the establishment to which the
application relates to indicate, within
such time, not exceeding fifteen days, as
may be specified in the notice, whether it
desires to be a contestant in the secret
ballot to be held for determining the
collective bargaining agent in relation to
the establishment.
(4) If a trade union fails to indicate,
within the time specified in the
notice, its desire to be a
contestant in the secret ballot,
shall not be a contestant in such
ballot.
(5) If no trade union indicates, within the
time specified in the notice, its desire to
be a contestant in the secret ballot, the
trade union which has made the
application shall be declared to be the
collective bargaining agent in relation to
the establishment concerned, provided
it has as its members not less than one
third of the total number of workers
employed in the establishment.
(6) Every employer shall on being so required by
the Director of Labor, submit to him a list of all
workers employed in the establishment for not
less than a period of three months in the
establishment excluding those who are casual
or badli workers, and the list shall contain the
following particulars; namely:
i. Name of each worker,
ii. Name of his parents (in appropriate case
name of husband/wife shall be written)
iii. Name of his section or department
iv. Place In which he is employed
v. His ticket number and the date of his
employment
(7) On being so required Director of
Labor, every employer shall submit
to the Director of Labor requisite
number of additional copies of the
list of workers mentioned in sub-
section (6) and shall provide such
facilities for verification of the list
submitted by him.
(8) On receipt of the list of workers from the
employer, the Director of Labor shall
send a copy of the list to each of the
contesting trade unions and shall also
affix a coy thereof in a conspicuous part
of his office and another copy of the list
in a conspicuous part of the
establishment concerned, together with a
notice inviting objections, if any, to be
submitted to him within such time as may
be specified by him.
(9) The objections, if any, received by the
Director of Labor within the specified
time shall be disposed of by him after
necessary enquiry.
(10) The Director of Labor shall make such
amendments, alterations or modifications
in the list of workers submitted by the
employer as may be required by any
decision given by him on objections
under sub-section (9).
(11) After amendments, alterations or
modifications, if any, made under sub-
section (10), or where no objections are
received by the Director of Labor within
the specified time, the Director of Labor
shall prepare a list of workers employed
in the establishment concerned duly
certified and send copies thereof to the
employer and such of the contesting
trade unions at least seven days prior to
the date fixed for poll.
(12)The list of workers prepared and
certified under sub-section (11) shall
be deemed to be the list of voters,
and every worker whose name
appears in that list shall be entitled
to vote in the poll to determine the
collective bargaining agent.
(13) Every employer shall provide all such
facilities in his establishment as may be
required by the Director of Labor for , the
conduct of the poll but shall not interfere
with, or in any way influence the voting.
(14) No person shall canvas for vote within
a radius of forty five meters of the polling
stations.
(15) For the purpose of holding secret ballot
to determine the collective bargaining
agent, the Director of Labor shall –
(a) fix the date for the poll and intimate the
same to each of the contesting trade
unions and also to every employer;
(b) on the date fixed for the poll to place in
the polling station set up for the purpose
the ballot boxes which shall be sealed in
the presence of the representatives of
the contesting trade unions as to receive
the ballot papers.
(c) Conduct the poll at the polling stations at which
the representatives of the contesting trade
unions shall have the right to be present;
(d) after the conclusion of the poll and in the
presence of such of the representatives the
contesting trade unions as may be present
open the ballot boxes and count the votes; and
(e) After the conclusion of the count, declare the
trade' union which has received the highest
number of votes to be the collective bargaining
agent;
Provided that no trade union shall be
declared to be the colective bargaining
agent for an establishment unless the
number of votes revived by it is not less
than one third of the total number of
workers employed in such establishment.
(16) Where a registered trade union has been
declared under sub-section (15) to be the
collective bargaining agent for an
establishment, it shall be such collective
bargaining agent for a period of two years and
no application for the determination of
collective bargaining agent for such
establishment shall be entertained within a
period of two years from the date of such
declaration : Provided that, in the case of a
group of establishments, the trade union
declared to be the collective bargaining agent
there for shall be such collective bargaining
agent for three years.
X 17. Notwithstanding anything contained in sub-
section (16), where a registered trade union
desires to be the collective bargaining agent for
an establishment after the expiry of the terms
of an existing collective bargaining agent or
where an existing collective bargaining agent
desires to continue as such the next term, it
may make an application to the Director of
labor, not earlier than one hundred and fifty
days and not later in one hundred and twenty
days immediately before the expiry the term of
the existing collective bargaining agent, to hold
secret ballot to determine the next collective
bargaining agent for establishment.
(18) Where an application under sub-
section (17) is made, secret ballot to
determine the next collective bargaining
agent shall be held within one hundred
and twenty days from the receipt of such
application, but the trade union declared
to be the next collective bargaining agent
shall be the collective bargaining agent
from the date of the expiry of the term of
the existing collective bargaining agent.
(19)Where after an application made under
sub-section (17) a collective bargaining
agent has not been determined for
reasons beyond the control of the
Director of Labour before the expiry of
the term of the existing collective
bargaining agent, the existing collective
bargaining agent shall continue to
function as such till a new collective
bargaining agent is determined.
(20)Where no application is made under sub-
section (17), the Director of Labour may, after
the expiry of the term of the existing collective
bargaining agent, recognize such collective
bargaining agent or any registered trade union
to act as collective bargaining agent for the
establishment unless a registered trade union
is deemed to be a collective bargaining agent
for the establishment under sub-section (1) or
until a collective bargaining agent is determined
by secret ballot under the foregoing provisions
of this section, as the case may be.
(21)Any dispute arising out of any matter in
relation to an election for determination of
collective bargaining agent shall be
refereed to the Labour court, and the
decision of the Labour court thereon shall
be final.
(22) If in any election for determination of
collective bargaining agent any trade
union receives less than ten per cent of
the total votes cast, the registration of that
trade union shall stand canceled.
(23) A collective bargaining agent may, without
prejudice to its own position, implead as a party
to any proceedings under this Chapter to which
it is itself a party any federation of trade unions
of which it is a member.

(24) The collective bargaining agent in relation to

an establishment shall be entitled to –
(a) Undertake collective bargaining with the
employer on matters connected with the
employment, non- employment, the term
of employment or the conditions of work
(b) Represent all or any of the workers in
any proceedings;
(c) Give notice of, and declare, a strike in
accordance with the provisions of this
Chapter; and
(d) Nominate representatives of workers
on the board of trustees of any welfare
institutions or Provident Funds, and of
the workers participation Fund
established under Chapter XV,
(e) To conduct cases on behalf of any
individual worker or group of workers.
(25) The provisions of this
section shall mutatis-
mutandis apply to the election
or determination of collective
bargaining agent in group of
establishments under this
Act.
 X 204Check Off :
(1) if a collective bargaining agent so requests,
employer of the workmen who are members
of collective gaining agent- trade union shall
deduct from the wages of the workmen
such amounts towards their subscription to
the funds of the collective bargaining
agent-union as may be specified, with,
approval of each individual workman named
in the demand lenient furnished by the trade
union,
(2) An employer making any deduction from
the wages under section (1) shall, within
15 days, deposit the entire amount so
deducted by him in the account of the
collective bargaining agent-union.

(3) The employer shall provide facilities to

the collective bargaining agent for
ascertaining whether deductions from the
wages of its members are being made
under sub-section (1).