Ch-20 Trade Union Legislation

Efforts at Amendment
Trade Unions (Amendment) Act,1947 Trade unions Bill, 1950 Industrial Relations Bill, 1978 Trade Unions (Amendment) Bill,1982 Trade Unions (Amendment) Act,2001

The Trade Unions Act, 1926

Definitions
Appropriate Government: For the trade unions whose objects are not confined to one state, the appropriate government will be the Central Government, for others itll be the State Government. Trade dispute: It means any dispute between employers and workmen or between workmen and workmen, or between employers and employers which is connected with the employment, or non-employment or 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: It means combination whether temporary or permanent formed primarily for the purpose of
regulating the relations for imposing restrictive condition on the conduct of any trade or business, can be between workmen and employers or between workmen and workmen, or between employers and employers

It can include any federation of two or more Trade Unions.

Sec.4:Registration of Trade Unions

Sec.3: Appointment of Registrars

The appropriate Government appoints a person to be the Registrar of Trade Unions for each State. It may also appoint Additional and Deputy Registrars of Trade Unions.

Sec.4: Mode of registration

Any seven or more members of a Trade Union may apply for registration of the Trade Union under this Act:
by subscribing their names to the rules of the Trade Union and by complying with the provisions of this Act with respect to registration.

An application for the registration of a Trade Union shall not become invalid merely for the reason that at any time after the date of the application, but before the registration of the Trade Union some of the applications (not exceeding half of the total number of the persons who made the application) have ceased to be members of the Trade Union.

Sec.5: Application for registration

Application for registration of a Trade Union shall be made to the Registrar and shall be accompanied by:
copy of the rules of the Trade Union statement of the following particulars, namely: The names, occupations and addresses of the members making the application. The name of the Trade Union and the address of its head office.

Where a Trade Union has been in existence for more than one year before the making of an application for its registration it needs to submit a statement of the assets and liabilities held by it.

Sec.6: Provisions to be contained in the rules of Trade Union

A Trade Union shall not bee entitled to registration under this Act, unless the executive is constituted in accordance with the provisions of this Act, and the rules provided for following matters:
the name of the Trade Union the object for which the Trade Union has been established the purposes for which the general funds of the Trade Union shall be applicable.

Sec. 7: Power to call for further particulars and to require alteration of name
The Registrar can call for further information for the purpose of checking the compliance of the application with respect to Sec 5 and Sec 6 of the Trade Union Act.
He may refuse to register the Trade Union until such information is supplied.

If the name under which a Trade Union is proposed to be registered is identical or it nearly resembles with that of any other existing Trade Union, the Registrar shall require the persons applying for registration to alter the name of the Trade Union stated in the application.

Registration
The Registrar, on being satisfied that the Union has complied with all the requirements of this Act in regard to registration, shall register the Trade Union. Note: This section is mandatory. The Registrar cannot refuse to register a Trade Union if the application for registration complies with the technical requirement as laid down in this Act.

Sec.8-9: Certificate of Registration

The Registrar registering a Trade Union under Section 8, shall issue a certificate of registration which shall be conclusive that the Trade Union has been duly registered under this Act.

Sec.10: Cancellation of Registration

A certificate of registration of a Trade Union may be withdrawn or cancelled by the Registrar:
On the application of the Trade Union If the Registrar is satisfied that the certificate has been obtained by fraud or mistake

Sec.11: Appeal
Any person aggrieved by any refusal of the Registrar to register a Trade Union or by the withdrawal or cancellation of a certificate of registration may appeal to the prescribed courts. The Appellate Court may dismiss the appeal, or pass an order directing the Registrar to register the Union and to issue a certificate of registration or setting aside the order for withdrawal or cancellation of the certificate, as the case may be, and the registrar shall comply with such order.

Sec.12: Registered office

All communications and notice to a registered Trade Union may be addressed to its registered office.
Notice of any change in the address of the head office shall be given within fourteen days of such change to the Registrar in writing.

Sec.13: Incorporation of registered Trade Unions

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 power to acquire and hold both movable and immovable property it can, by the said name sue and be sued.

Certain Acts not to apply to registered Trade Unions

The Societies Registration Act, 1863. The Co-operative Societies Act, 1912. The Companies Act, 1956

Rights and liabilities of registered trade unions

Sec.15 : Objects on which general funds may be spent

The payment of salaries, allowances and expenses to office bearers of the Trade Union. The payment of expenses for the administration of the Trade Union including audit of the accounts of the general funds. The compensation to members for loss arising out of trade disputes; Allowance to members or their dependants on account of death, old age, sickness, accidents or unemployment of such members; The provision of educational, social or religious benefits for members or for the dependants of members;

The upkeep of a periodical published mainly for the purposes of discussing questions affecting employers or workmen; Any other object notified by the appropriate Government in the official Gazette.

Sec.16: Constitution of a separate fund for political purposes

A registered Trade Union may constitute a separate fund, from which payments may be made, for the promotion of the civic and political interest of its members.
No member shall be compelled to contribute to the fund. Member who does not contribute to the said fund shall not be excluded from any benefits of the Trade Union Contribution to the said fund shall not be made a condition for admission to the Trade Union.

Sec.17: Criminal conspiracy in trade disputes

No officers or members of a registered Trade union shall be liable to punishment under sub-section (2)of Section 120-B of the Indian Penal Code, in respect of any agreement made between the members for the purpose of furthering any such object of the Trade Union as is specified in Section 15 unless the agreement is an agreement to commit an offence.

Immunity from civil suit to certain cases

No suit or other legal proceeding shall be maintainable in any Civil Court against any registered Trade Union or any member in respect of any act done in contemplation or furtherance of a trade dispute to which a member of the Trade Union is a party on the ground only that such act induces some other person to break a contract of employment, or that it is in interference with the trade, business or employment of some other person or with the right of some other person to dispose of his capital of his labour as he wills.[Sec.18(1)] A registered Trade Union shall not be liable in any suit or other legal proceeding in any Civil Court in respect of any tortuous act done in contemplation or furtherance of a trade dispute by and 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.[Sec.18(2)]

Enforceability of agreements
An agreement between the members of a registered Trade Union shall not be void merely because of the fact that any of the objects of the agreement is in restraint of trade.[Sec.19]

Sec.20: Right to inspect books of Trade Union

The account books of a registered Trade Union and the list of members shall be open to inspection by any member of the Trade Union.

Sec.21: Rights of minors to membership of Trade Union

Any person who has attained the age of fifteen years may be a member of registered Trade Union subject to any rules of the Trade Union to the contrary.

Sec. 21A: Disqualification of office bearers of Trade Union

A person shall be disqualified for being chosen as, and for being a member of the executive or any other office-bearer or registered Trade Union if He has not attained the age of eighteen years; He has been convicted by a Court in India of any offence involving moral turpitude and sentenced to imprisonment, unless a period of five years has elapsed since his release.

Sec.22: Proportion of office-bearers to be concerned with the industry

Not less than one half of the total number of the office bearers of every registered Trade Union shall be persons actually engaged or employed in an industry with which the Trade Union is connected.

Sec.23: Change of name

Any registered Trade Union may, with the consent of not less than two-thirds of the total number of its members and subject to the provisions of Section 25 change its name.

Sec.24: Amalgamation of Trade Union

Any two or more registered Trade Unions may become amalgamated together as one Trade Union provided that the votes of at least one-half of the members of each such Trade Union is recorded, and that at least sixty percent of the votes recorded are in favour of the proposal.

Sec.25: Notice of change of name or amalgamations

Notice in writing of every change of name and every amalgamation shall be sent to the Registrar, signed,
in the case of change of name, by the Secretary an by seven members of the Trade Union changing its name in the case of an amalgamation by the Secretary and by seven members of each and every Trade Union which is amalgamating.

Sec.26: Effects of change in name and of amalgamation

The change in the name of a registered Trade Union shall not effect
any rights or obligation of the Trade Union or render defective any legal proceeding by or against the Trade Union, legal proceeding may be continued in its new name.

An amalgamation of two or more registered Trade Unions shall not prejudice any right of any such Trade Unions or any right of a creditor or any of them.

Sec.27: Dissolution
When a registered Trade Union is dissolved, notice for the dissolution signed by seven members and by the Secretary of the Trade Union shall, within fourteen days of the dissolution, be sent to the Registrar. Where the dissolution of a registered Trade Union has been registered and the rules of the Trade Union do not provide for the distribution and funds, the Registrar shall divide the funds amongst the member in such manner as may be prescribed.

Sec.28: Returns
Every registered Trade Union is required to send a general statement, of all receipts and expenditure audited in the prescribed manner, to the Registrar annually on or before such date as may be prescribed of during the year.

Regulations

Sec.29: Power to make regulations

The appropriate Government may make regulations for the purpose of carrying into effect the provisions of this Act. Such regulations may provided for all or any of the following matters:
The manner in which Trade Union and the rules of Trade Unions shall be registered and the fees payable on registration; The transfer of registration in the case of any registered Trade Union which has changed its head office from one State to another; The manner in which, and the qualifications of persons by whom, accounts of registered Trade Unions or of any class of such Unions shall be audited;

 The conditions subject to which inspection of documents kept by Registrars shall be allowed and the fees which shall be chargeable in respect of such inspections;

Sec.30: Publication of regulations

The Power to make regulations conferred by section 29 is subject to the condition of the regulations being made after previous publications. Regulations so made shall be published in the Official Gazette and on such publication shall have effect as if enacted in this Act.

Sec.31-32:Penalties If a registered trade union makes any default in giving notice or sending any statement or other documents required under the act, every office bear or other person responsible to give or send the same, and in absence if such persons, every member of the executive of the trade union is punishable with fine which may be extend to five rupees and in case of a continuing offence, with an additional fine with may be extend to five rupees for each week after the first during which the default continuous, but the total amount of fine is not exceed fifty rupees.

Recommendations of the second NCL(2002)

The second national commotion for labour (2002) has adopted a similar approach and recommended a comprehensive labour management relations law incorporating various aspects of trade unions, settlement of industrial disputes , sending orders and workers participation in management.

THANK YOU