ALIGARH MUSLIM UNIVERSITY

MALAPPURAM CENTRE, KERALA

Labour Law
General Class Test-1st
Topic- Concept of trade union and process of its
registration

Submitted to Submitted by
Mr.MTA Salam Kunjali Singh
Assistant Professor GK7931
Department of law 18BALLB34
 TABLE OF CONTENTS
Introduction 03
Definition and Meaning of Trade 03
union
Origin of Trade Union in India 04
Objective of Trade Union 04
Importance of trade union 05
Characteristics of Trade union 05
Procedure for the Registration of 06
Trade Union
-Appointment of Registrar 07
-Mode of Registeration 07
-Application of Registration 08
-Provision to be contained in the 08
rules of trade union
-Registration 09
Incorporation of Registered 10
Trade union
Conclusion 11
Bibliography 11
 Introduction
The concept of Trade union includes organization of all categories of employees formed as per
the provisions of labour legislation to secure their common interests and well being; and to
ensure the safety, security and welfare of the working class of people mostly employed in
factories, mines, and plantations, etc. Actually, the objectives of trade unions are closely
connected with the objectives of social justice in the realm of industry and labour.
In industrially advanced countries, trade unionism has made a great impact on the social,
political and economic life. India, being an agricultural country, trade unionism is restricted to
industrial areas and it is still in a stage of growth. The earliest known trade unions in India were
the Bombay Millhand's Association formed in 1890, the Amalgamated Society of railway
servants of India and Burma formed in 1897, Printers' Union formed in Calcutta in 1905, the
Bombay Postal Union which was formed in 1907, the Kamgar Hitwardhak Sabha Bombay
formed in 1910.

Definition and Meaning of Trade Union

Section 2 (h) of The Trade Unions Act, 1926 gives us the definition of trade union. Section 2(h)
of the Trade Unions Act 1926 defines Trade Union as a combination, temporary or
permanent, formed primarily for the purpose of regulating the relations between workmen
and employer, workmen and workmen, or employers and employers, or for imposing
restrictive condition on the conduct of any trade or business, and includes the federation of
two or more trade unions.
A trade union is a continuous association of wage earners for the purpose of maintaining the
condition of their lives. But the statutory definition given in the trade unions act 1926 uses the
expression combination instead of association used in sydney's definition. The word combination
carries a very wide meaning. Whatever may be the combination if it is for one or the other of the
statutory objects as provided in this act it is Trade Union.
It is the object of the association or combination that determines whether it is a trade union or
not. A society or authors, publishers, and other owners of copyright meant to protect their
copyright in music and songs, was held NOT to be a Trade Union by the House of Lords.
In the case of Tamil Nadu NGO Union vs Registrar, Trade Unions, AIR 1962, Madras HC held
that Tamil Nadu NGO Union, which was an association of sub magistrates of the judiciary,
tahsildars, etc., was not a trade union because these people were engaged in sovereign and legal
functions of the State.
In the case of GTRTCS and Officer's Association, Bangalore and others vs Asst. Labor
Commissioner and anothers AIR 2002, Kar. HC held that the definition of workmen for the
purpose of Trade Unions is a lot wider than in other acts and that the emphasis is on the purpose
of the association rather than the type of workers and so it is a valid Trade Union.
The registration of a trade union is not necessary. However, upon registration, a trade union gets
several benefits including some immunities that are not available to an unregistered Trade
Union. In the case of Workers of B and C Co vs Labor Commissioner, AIR 1964 Mad it was
held that a Trade Union can raise or sponsor a trade dispute and represent on behalf of its
members in legal proceedings arising out of a trade dispute.

Origin of Trade Union in India

The origin of the passing of a Trade Unions Act in India was the historic Buckingham Mill case
of 1940 in which the Madras High Court granted an interim injunction against the Strike
Committee of the Madras Labour Union forbidding them to induce certain workers to break their
contracts of employment by refusing to return to work. Trade Union leaders found that they were
liable to prosecution and imprisonment for bona fide union activities and it was felt that some
legislation for the protection of trade union was necessary. In March, 1921, Shri N. M. Joshi,
then General Secretary of the All India Trade Union Congress, successfully moved a resolution
in the Central Legislative Assembly recommending that Government should introduce
legislation for the registration and protection of trade unions. Opposition from employers to the
adoption of such a measure was, however, so great that it was not untill 1926 that the Indian
Trade Unions Act was passed.

Objectives
Following are the objectives of trade unions:
1. Ensure Security of Workers:
This involves continued employment of workers, prevent retrenchment, lay off or lock-outs.
Restrict application of “fire” or dismissal or discharge and VRS.
2. Obtain Better Economic Returns:
This involves wages hike at periodic intervals, bonus at higher rate, other admissible allowances,
subsidized canteen and transport facilities.
3. Secure Power To Influence Management:
This involves workers’ participation in management, decision making, role of union in policy
decisions affecting workers, and staff members.
4. Secure Power To Influence Government:
This involves influence on government to pass labour legislation which improves working
conditions, safety, welfare, security and retirement benefits of workers and their dependents,
seek redressal of grievances as and when needed.

Importance of Trade Union

Trade unions help in accelerated pace of economic development in many ways as follows:
(i) By helping in the recruitment and selection of workers.
(ii) By inculcating discipline among the workforce
(iii) By enabling settlement of industrial disputes in a rational manner
(iv) By helping social adjustments. Workers have to adjust themselves to the new working
conditions, the new rules and policies. Workers coming from different backgrounds may become
disorganized, unsatisfied and frustrated. Unions help them in such adjustment.
Trade Union is an important factor of the current society, as it safeguards the basic interest and
needs of both the employees as well as employers, by providing better terms and conditions of
employment, secured jobs, better wages, favorable working environment which in turn leads to
desired profitability.

Main Characteristics
1. A union normally represents members in many companies throughout the industry or
occupation.
2. A union is fundamentally an employer regulating device. It sharpens management efficiency
and performance while protecting the interests of the members.
3. A union is a part of the working class movement.
4. A union is a pressure organisation originating in the desire on the part of a group with
relatively little power to influence the action of a group with relatively more power.
5. A union is a political institution in its internal structure and procedures.
 Procedures for the Registration of Trade Unions
The main object of the Trade Unions Act, 1926 is to provide machinery for registration and
regulation of Trade Unions. Although registration of a trade union is not mandatory, it is
advisable to register the trade unions as the registered trade unions are entitled to get several
benefits, immunities and protection under the act. There are specific rights and privileges
conferred on the members of the registered trade unions. The members of the registered trade
unions are entitled to get protection, immunity and certain exceptions from some civil and
criminal liabilities. A trade union can only be registered under the Trade Unions Act, 1926.
Trade union Act, 1926 not provides compulsory registration. However, there are certain
disadvantages of non registration. Therefore it is better to register the trade union.
The following is the procedure for registration of trade union.

Appointment of Registrar:
Section 3 of the Trade Union Act, 1926 empowers the appropriate Government to appoint a
person to be a registrar of Trade Unions. The appropriate Government is also empowered to
appoint additional and Deputy Registrars as it thinks fit for the purpose of exercising and
discharging the powers and duties of the Registrar. However, such person will work under the
superintendence and direction of the Registrar. He may exercise such powers and functions of
Registrar with local limit as may be specified for this purpose.

Mode of registration:
Sec 4 of the Act states that, any seven or more members of a Trade Union may, by subscribing
their names to the rules of the Trade Union and by otherwise complying with the provisions of
this Act with respect to registration, apply for registration of the Trade Union under this Act.
However, no Trade Union of workmen shall be registered unless at least ten per cent. or one
hundred of the workmen, whichever is less, engaged or employed in the establishment or
industry with which it is connected are the members of such Trade Union on the date of making
of application for registration.
No Trade Union of workmen shall be registered unless it has on the date of making application
not less than seven persons as its members, who are workmen engaged or employed in the
establishment or industry with which it is connected.
Where an application has been made under sub-section (1) of Sec 4 for the registration of a
Trade Union, such application shall not be deemed to have become invalid merely by reason of
the fact that, at any time after the date of the application, but before the registration of the Trade
Union, some of the applicants, but not exceeding half of the total number of persons whomade
the application, have ceased to be members of the Trade Union or have given notice in writing to
the Registrar dissociating themselves from the applications.
The Supreme Court in Tirumala Tirupati Devasthanam held that, any group of employees may
be registered as a trade union under the Act for the purpose of regulating the relations between
them and their employer or between themselves. It would be apparent from this definition that
any group of employees which comes together primarily for the purpose of regulating the
relations between them and their employer or between them and other workmen may be
registered as a trade union under the Act.

Application for registration:

Application for registration must be submitted in the prescribed format. Sec 5 provides that,
every application for registration of a Trade Union shall be made to the Registrar, and shall be
accompanied by a copy of the rules of the Trade Union and a statement of the following
particulars, namely:
1) the names, occupations and addresses of the members making the application;
2) in the case of a Trade Union of workmen, the names, occupations and addresses of the place
of work of the members of the Trade Union making the application;
3) the name of the Trade Union and the address of its head office; and
4) the titles, names, ages, addresses and occupations of the 4 office-bearers of the Trade Union.

Where a Trade Union has been in existence for more than one year before the making of an
application for its registration, there shall be delivered to the Registrar, together with the
application, a general statement of the assets and liabilities of the Trade Union prepared in such
form and containing such particulars as may be prescribed.

Provisions to be contained in the rules of a Trade Union:

Every application must accompany the rules of trade union that has been provided under Sec 6
of the Act. A Trade Union shall not be entitled to registration under this Act, unless the
executive thereof is constituted in accordance with the provisions of this Act, and the rules
thereof provide for the following matters, namely:
a) the name of the Trade Union;
b) the whole of the objects for which the Trade Union has been established;
c) the whole of the purposes for which the general funds of the Trade Union shall be applicable,
all of which purposes shall be purposes to which such funds are lawfully applicable under this
Act;
d) the maintenance of a list of the members of the Trade Union and adequate facilities for the
inspection thereof by the office-bearers and members of Trade Union;
e) the admission of ordinary members who shall be persons actually engaged or employed in an
industry with which the Trade Union is connected, and also the admission of the number of
honorary or temporary members as officebearers required under section 22 to form the executive
of the Trade Union;
f) the payment of a minimum subscription by members of the Trade Union which shall not be
less than—
i.- one rupee per annum for rural workers;
ii- three rupees per annum for workers in other unorganized sectors; and
iii- twelve rupees per annum for workers in any other case;
g) the conditions under which any member shall be entitled to any benefit assured by the rules
and under which any fine or forfeiture may be imposed on the members;
h) the manner in which the rules shall be amended, varied or rescinded;
i) the manner in which the members of the executive and the other office-bearers of the Trade
Union shall be elected and removed; the duration of period being not more than three years, for
which the members of the executive and other office-bearers of the Trade Union shall be elected;
k) the safe custody of the funds of the Trade Union, an annual audit, in such manner as may be
prescribed, of the accounts thereof, and adequate facilities for the inspection of the account
books by the office-bearers and members of the Trade Union; and
l) the manner in which the Trade Union may be dissolved.

Power to call for further particulars and to require alteration of name:

Under Sec 7 of the Act, the Registrar has power to call for further information for the purpose of
satisfying himself that any application complies with the provisions of section 5, or that the
Trade Union is entitled to registration under section 6, and may refuse to register the Trade
Union until such information is supplied.
It further states that, if the name under which a Trade Union is proposed to be registered is
identical with that by which any other existing Trade Union has been registered or, in the
opinion of the Registrar, so nearly resembles such name as to be likely to deceive the public or
the members of either Trade Union, the Registrar shall require the persons applying for
registration to alter the name of the Trade Union stated in the application, and shall refuse to
register the Union until such alteration has been made.

Registration:
As per sec 8 of the Act, the Registrar, on being satisfied that the Trade Union has complied with
all the requirements of this Act in regard to registration, shall register the Trade Union by
entering in a register, to be maintained in such form as may be prescribed, the particulars relating
to the Trade Union contained in the statement accompanying the application for registration.

Certificate of registration:
Sec 9 of the Act empowers the Registrar, on registering a Trade Union under section 8, 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 Act.

Minimum requirement about membership of a Trade Union:

Sec 9-A provides that, a registered Trade Union of workmen shall at all times continue to have
not less than ten percent or one hundred of the workmen, whichever is less, subject to a
minimum of seven, engaged or employed in an establishment or industry with which it is
connected, as its members.

Cancellation of registration:
A certificate of registration of a Trade Union may be withdrawn or cancelled under Sec 10 of the
Act, by the Registrar
1. on the application of the Trade Union to be verified in such manner as may be prescribed;
2. if the Registrar is satisfied that the certificate has been obtained by fraud or mistake, or that
the Trade Union has ceased to exist or has willfully and after notice from the Registrar
contravened any provision of this Act or allowed any rule to continue in force which is
inconsistent with any such provision, or has rescinded any rule providing for any matter
provision for which is required by section 6;
3. if the Registrar is satisfied that a registered Trade Union of workmen ceases to have the
requisite number of members:
Registrar to the Trade Union shall give a previous notice of two months in writing specifying the
ground on which he proposed to withdraw or cancel the certificate of registration otherwise than
on the application of the Trade Union.

Appeal:
Unlimited right of appeal from the decisions of the registrar is granted by section 11 of the act.
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, within such period as may be
prescribed, appeal under Sec 11 of the Act,
a) where the head office of the Trade Union is situated within the limits of a Presidency town to
the High Court, or Minimum requirement about membership of a Trade Union:
b) where the head office is situated in an area, falling within the jurisdiction of a Labour Court or
an Industrial Tribunal, to that Court or Tribunal, as the case may be;
c) where the head office is situated in any area, to such Court, not inferior to the Court of an
additional or assistant Judge of a principal Civil Court of original jurisdiction, as the appropriate
Government may appoint in this behalf for that area.
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 under the provisions of section 9 or setting
aside the order or withdrawal or cancellation of the certificate, as the case may be, and the
Registrar shall comply with such order.

Incorporation of registered Trade Union

Trade union after registration becomes entitled to the following advantages i.e body corporate by
the name under which it is registered as well as it gets perpetual succession and common seal.
Like other corporate body it can also acquire and hold both movable and immovable property in
its name. It can also entered into contracts through agents. Trade union also get right to sue and
it can also be sued in its registered name.
On other hand there for an unregistered trade union is only a voluntary association of individuals
having no corporate existence. It is not a legal entity. An unregistered Trade union cannot be
sued and any appearance of officials on its behalf before the court is not a right.

Conclusion
The importance of trade unions have been growing since independence. Collective bargaining is
an important aspect in an industrial relation and which in turn depends on the recognition of
trade union. Since the enactment of the trade union Act 1926 the attitude of the legislature and
executive are very hostile towards the legislations though at many time the consideration of
recognition of trade union came up.
The role of trade union is indispensable in balancing workers’ interests with that of investors.
They also keep a check on the sustainability of business practices, including ethics.
Hence, they play an important role in getting support for worker interests from the larger society.
They also mobilise opinions in favour of labour. They are also instrumental in organising
democratic protests and avoid movements getting overly militaristic.

Bibliography
Books referred-
1. Mishra, SN, Labour and Industrial Law, Central Law Publication,29th edition.
2. Sirivastav SC, Industrial Relations and Labour law, 5th edition

Websites
1. www. Lawteacher.net