The Trade Unions Act,

1926

Submitted To,
Dr. Vilas Kulkarni

Submitted By,
Shaikh Hannan
(11540)
Milad Ahmad (11524)

DEFINITION.
Trade Union means any combination, whether
temporary or permanent, formed primarily for the
purpose of regulating the relations between
workmen and employers or between workmen
and workmen, 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.

ROLE OF TRADE UNIONS.

There are 3 views of what role Trade unions have and/or
must have.
1. Traditional View : to protect jobs and real earnings,
secure better conditions at work and life, fight
against exploitation & arbitrariness, to ensure
fairness and equity in employment contexts.
2. Predominant view : they go beyond the basic needs,
through industrial and political action, establish
minimum economic and legal conditions and
restrain abuse of labour, uplifting the poor.
3. Public View : Union leaders are autocratic,
corrupt and indifferent to the interest of the
poor, they have too much power and too little
morals.

SCENARIO IN INDIA.
The World Labour Report says that Indian trade
unions are too fragmented. As there are many
trade unions at the same industry, fighting for
same body of workers, the rivalry often becomes
bitter and violent.
As many trade unions are not affiliated to AIF the
exact amount of trade unions is not known.
Trade unionism in India suffers from ideological
differences, caste and regional considerations,
politicisation, inter-union rivalry, uneconomic size,
financial debility and dependence on outside
leadership.

INITIALIZATION AND GROWTH

OF TRADE UNIONS IN INDIA
The first strike took place in 1877 in Nagpur, and
between 1880 to 1890 25 strikes took place but
all failed as they were not properly organized.
The labour conditions were improved just
because Britishers wanted to increase their
interests and not jeopardize the cheap Indian
labour.
The factories act of 1891 and 1892 provided the
restrictions on hours and employment of women.

CONTD
Narayan Lokhande was the father of Indias Trade
union movement. He created the Bombay
Millhands Associaton of India, Indias first
workers organization.
The first systematic attempt was in 1906 by
postal offices of Bombay and Calcutta.
The outcry of 1908 led to the abolition of the
INDENTURE system in 1922.
In early 20th century most common grievance was
the harsh labour conditions set by the British.
In 1924 there were 167 trade unions in India.
The Indian Trade Unions act of 1926 made it legal
for any 7 workers to combine in a trade union.

TRADE UNIONS AND COLLECTIVE

BARGAINING.
As it often happens in an industry or undertaking,
there are one or more registered trade unions, in
that case to whom the employer should negotiate
assumes importance.
In this case the method of secret ballot (elections)
is taken into account and whomsoever wins it will
sit into the negotiations with the employer.
The way of conducting the secret ballot is as
same as the old vidhan sabha elections.

DEFINITIONS
1. Appropriate Government : If the trade union
is not confined to one state, then central
government, otherwise the state government.
2. Executive : means the body, by whatever name
called, to which the management of the affairs
of a trade union is entrusted.
3. Office Bearer : includes any member of the
executive thereof, except and auditor.
4. Prescribed : as in prescribed by regulations
made under this act
5. Registered Office: means the office which is
registered under the act as the head office
thereof.

DEFINITIONS
6. Registered Trade Union : means trade union registered
under this act
7. Registrar :
o Appointed by appropriate govt. as per the section 3
( appointment of registrars), and includes any additional
or deputy registrar of trade union.
o Appointed for the state in which the head or registered
office, as the case may be, of the trade union is situated.
8. Trade dispute : means any dispute between employers
and workmen, workmen and workmen, or between
employers and employers which is connected with the
employment or non-employment, or the terms of
employment, or the conditions of labour, of any person, and
workmen means all persons employed in trade or industry
whether or not in the employment of the employer with
whom the dispute arises.

REGISTRATION OF TRADE
UNIONS
Section 3 : Appointment of Registrars
1. The appropriate govt. shall appoint a person to
be the registrar of Trade Union for each state.
2. They can appoint as many additional registrars
or deputy registrars of Trade Unions as it thinks
fit for the purpose of exercising and discharging,
under the superintendence and direction of the
registrar. They can, within the local limit and by
order exercise powers and functions so
specified.
3. Subject to provisions of any order under sub
section 2, the additional or deputy registrar
shall be deemed to be the registrar in relation
to the trade union for the purposes of this act.

 Section 4 : Mode of Registration

1. Any 7 or more members of a Trade Union may, by
subscribing their names to the rules of the union
and otherwise complying with the provisions of this
act with respect to registration, apply for
registration of the Trade union under this act.
But no trade union would be registered unless 10% or
100, whichever is less, amount of workers, engaged or
employed are the members of the said trade union on the
date of application.
Also, it also wont be registered unless on the date of
making application, it has not less than seven persons as
its members present in the industry.
2. When an application has been made under sub
section 1 it will not be deemed invalid just because
not more than half of its members at the time of
application are no more affiliated to the trade union,
or have given in writing to registrar dissociating
themselves from said union.

 Section 5 : Application for registration

1. The application is to be made to the registrar
with the set of rules of the trade union and
following statements.
a) The names, occupations and addresses of
members making application.
a. In case of trade union of workmen,
address must be of place of work of the
members making the application
b) The name of trade union and address of the
head office
c) The titles, names, ages, addresses and
occupations of the office bearers.
2. If the trade union existed for more than one
year before making the application, along with
the all documents, a document of assets and
liabilities of trade union must be accompanied

 Section 6: Provisions to be contained in the rules of

trade union
The trade union is not entitled to registration unless
the executive thereof is constituted with provisions of
this act, the rules thereof provide for following matters.
a. The name of the trade union
b. The object for which it was established
c. The purpose for which the general fund is
applicable, all purposes must be lawfully
applicable under this act.
d. The maintenance of list of members, the
adequate facilities that a be inspected by office
bearers and members.
e. Admission of ordinary members who shall be
employed or engaged, and also the honorary or
temporary members required to form the
executive.

ae. The payment of a min subscription by members

which shall not be less than-1. 1 rupee per annum for rural workers;
2. 3 rupee per annum for unorganized sector;
3. 12 rupees per annum for workers in other case;
af. The conditions of benefits and rules of fine or
forfeiture;
ag. The manner in which rules are varied, amended or
rescinded;
ah. The manner in which members of executive and
office bearers shall be elected and removed;
ah. The duration of the election should not be more
than 3 years
ai. The safe custody of funds, an annual audit, as
prescribed by accounts thereof, and adequate
facilities for the inspection of account books by
office bearers and members;
aj. The manner in which the trade union will be
dissolved

 Section 7: Power to call for further particulars

and to require alteration of name.
1. The registrar has the right to recall for further
info to check or satisfy himself that application
made is in compilation of section 5 and section
6 and can refuse to register if not provided so;
2. If the name of trade union is identical to any
other trade union, or even resembles so much
so as to deceive the members of either union,
the registrar shall require the members applying
to alter the name, and refuse to register until
such alteration is made.
Section 8 & 9 : Registration and Certificate of
Registration
After the registrar is satisfied with the application he
will register the trade union and issue a certificate as
conclusive evidence of the trade union under this act.

 Section 10 : cancellation of registration

The certificate of registration can be withdrawn or
cancelled by the registrar if;
a. The application is to be verified in such manner
as may be prescribed;
b. If registrar finds out that the certificate is
obtained by fraud or mistake, or that trade union
ceased to exist, or has wilfully even after notice
contravened any provision, or allowed any rule
to continue in force which is inconsistent with
such provision, or has rescinded any rule of
provision under section 6;
c. If the registrar is satisfied that the union no
longer has required number of members any
more;
Notice of min 2 months shall be given in writing
specifying the reason of withdrawal or cancellation by
registrar to trade union.

 Section 11: Appeal

1. If any person is aggrieved by the registrars
decision of withdrawal or cancellation of
certificate can within prescribed period appeali. If head office is in limits of presidency town
high court;
ii. If in limits of labour court or and industrial
tribunal then as the case maybe;
iii. If in any other area, to such court which is
not inferior to the court of an additional or
assistant judge of a principal civil court;
2. The appellate court can dismiss or pursue the
appeal, ordering registrar to issue a certificate
of registration;
3. If the lower court dismiss the appeal the person
can appeal to the high court, which then shall
have all the powers of previous appellate court;

 Section
12
&
13
suggest
that
all
communications and notices to a registered trade
union maybe addressed to its head office; notice
of change in address shall be given to registrar in
14 days.
Also, the trade union must have its own common
seal with power to acquire and hold all property.
Section 14 names following acts not applicable
to registered trade union;
i. The societies registration act, 1860
ii. The cooperative societies act, 1912
iii. The companies act, 1956

 Section 15: Objects on which general funds may be

spent
a. The payment of salaries, allowance and expenses to
office bearers
b. Admin expenses, including auditing expenses of general
funds;
c. The prosecution or defence of any legal proceeding, for
protecting or securing the rights of trade union;
d. Conduct of trade disputes on behalf of union or any
member thereof;
e. The compensation for members for loss arising out of
disputes;
f.
Allowances to members or their dependants, on account
of death, sickness, old age, accidents or unemployment;
g. Undertaking liability for under policies of assurance on
lives of members, or under policies for sickness,
accident or unemployment;
h. Provision of educational, social and religious expenses
including the expense of funeral or any other
ceremonies, or for the dependants;

i.

The upkeep of a periodical discussing

questions affecting employers or workmen;
j. In furtherance of any objects on which the
general funds may be spent, of contributions
to any cause intended to benefit workmen,
provided that the expense shall not increase,
one fourth of the combined total of the gross
income, which has up to that time accrued
during that year and of the balance at the
credit at the commencement of that year;
k. Subject to any condition contained in the
notification, any other object notified by the
appropriate government in the official
gazette;

 Section 16: Constitution of a separate fund for

political purposes
1. They can have a separate fund for political
purposes, the contribution can be separately
levied or made to that fund, from which payments
may be made for civic and political interests for its
members;
2. The payments can be;
a. Directly or indirectly by a candidate or a
prospective candidate for election as member of
legislative body, before, during or after the
election in connection of his candidature;
b. Holding of meeting or distribution of any
literature or documents in support of any such
candidate or prospective candidates; (meeting
can be for political purposes also)
c. Maintenance of any member of legislative body;
d. The registration of electors or the election of
candidate for legislative body;

3. No member shall be compelled to contribute

to this fund, and if any member does not
contribute, he shall not be excluded from any
benefits of trade union, or should not be put
at any disability or disadvantage as
compared with other members, and the
contribution should not be a condition to
admission in the trade union;

 Section 17: Criminal conspiracy in trade

unions
No office bearer or member of union is liable to
punishment, in subject to any agreement made
between members for the furthering any such
object of trade union, unless the agreement is an
agreement to make offence;
The simple explanation is it is immaterial whether
the illegal act is the ultimate object of such
agreement, or is merely incidental to that object.
If any one is party to a criminal conspiracy to
commit and offence, is punishable with death, or
life sentence, or rigorous imprisonment for a term
of minimum 2 years, same punishment is for the
one who abets the act.

 Section 18 : Immunity from civil suit in

certain cases
1. No suit or legal proceeding is to be taken to
civil court against any office bearer or
member of trade union in act done in
contemplation or furtherance of a trade
dispute, containing, breaking an employment
contract, interference in trade, business,
employment of some other person, or right of
some other to dispose his capital or his
labour;
2. Trade union is not liable to appear in civil
court in respect to any tortious act done in
any dispute if it is proved that the person
acted without knowledge, or acted in contrary
to the instructions of executive;

 Section 19 suggests that any agreement between the

members of the trade union shall not be deemed void
or voidable, just because the objects of agreement are
in restraint of trade, provided there is nothing against
in the law, also the civil court cannot entertain any
legal proceedings.
Section 20 suggests that the books of trade union can
be checked at any time by the member or office bearer.
Section 21 suggests that any person that has attained
15 years of age can enjoy all the benefits, rights, and
can give all the acquaintances of a trade union.
Section 22: Disqualifications of office bearers of Trade
Union
1. A person shall be disqualified to become a member
of executive or office bearer ifi. He is not 18 yet;
ii. He has been convicted by a court in India for any
offense involving moral turpitude, unless a
period of 5 years has elapsed since his release;

 Moral turpitude : crimes which refer to conduct that

is inherently base, vile or depraved and contrary to
the accepted rules of morality whether it is or is not
punishable as a crime.
Section 23 : Proportion of Office Bearers to be
connected with the industry
1. Out of total no. of office bearer at least half of
them must be engaged or employed in an
industry with which the trade union is connected,
until the appropriate govt. give it a special order;
2. Save as otherwise provided in sub section 1, all
office bearers except not more than one third or
5 whichever is less, shall be persons actually
engaged or employed in the industry related to
trade union;
3. No member of council of ministers or person
holding an office for profits shall be the executive
or office bearer;

 Sections 23, 24, 25, and 26 : change of name or

amalgamation, its notice, and its effects.
At least two thirds of the union members must agree to
the change in name;
Any two trade union can get amalgamated without either
of them being dissolved or divided at funds, provided, at
least one half of each or every such union members vote
are recorded and at least 60% should be in favour of
amalgamation;
In case of change of name, notice in writing with sign of
secretary and 7 members of trade union to the registrar;
In case of amalgamation, notice in writing, with sign of
secretary, and sign by 7 members of each and every
trade union which is party thereto, to the registrar, or if
the new office is in new state, the registrar of that state;
The change name will not have any affect on rights or
obligations, or render defective any legal proceedings
against any other trade union; any legal proceeding
which have commenced by its former name may be
continued in new name;

 Amalgamation of two or more registered trade

unions shall not prejudice any right of any such
trade union;
Section 27 : Dissolution
1. When a trade union is dissolved the notice in
writing signed by secretary, and 7 members,
within 14 days should be sent to registrar;
2. And if the distribution of funds is not provide
in document, the registrar will divide the
funds amongst its members as he sees fits;
Section 28 : Returns
1. Annually on or before the date prescribed, a
general statement, audited in prescribed
manner, of all receipts and expenditure, and
assets and liablities;
2. Changes in office bearers, change in any rule,
within 15 days of making the alteration;

 Section 31, 32 and 33 deals about penalties and

cognizance in case of offences.
If default is made in sending statement, the office
bearer, and if office bearer is not there, every
member, will be fined not exceeding 5 rupees;
provided aggregate shall not exceed 50;
If any person makes false entry or omission from
general statement, is punishable by fine not
exceeding 500 rupees;
If any person tries to decieve another person
applyig to become a member, or existing
member, any document, purporting to be rules,
and he believes they are false, is punishable by
fine not exceeding 200 rupees;
No court inferior to presidency magistrate or a
magistrate of first class shall take offence under
this act;