Trade Unions Act 1926 Notes
Overview: The Trade Unions Act 1926 governs India's
formation, registration, and regulation of trade unions. It
allows workers from various trades, industries, or
companies to form unions for collective action to protect
their interests.
The Trade Unions Act of 1926 is a foundational piece of
legislation in Indian labour law governing the registration,
rights, and obligations of trade unions.
The Trade Unions Act 1926 Notes Complete Guide
Objectives of a Trade Union
Important Provisions of the Trade Unions Act, 1926
Downloadable notes of Trade Unions Act, 1926
Amendments through the Trade Unions (Amendment)
Act
Objectives of a Trade Union
A trade union is a voluntary organization aimed at
protecting and advancing the welfare of its members. The
key objectives include:
Securing fair wages and providing better promotion
and training opportunities for workers.
Ensuring job security and improving service
conditions.
Enhancing working and living conditions.
Providing educational, cultural, and recreational
facilities.
Facilitating technological advancement and
enhancing workers' understanding of innovations.
Improving production, productivity, and
discipline among workers.
Promoting individual and collective welfare to
align worker interests with industry goals.
Participating in management decision-
making related to workers and taking disciplinary
action when necessary.
Important Provisions of the Trade Unions Act, 1926
1. Definition of a Trade Union (Section 2):
A Trade Union is any combination, whether temporary
or permanent, formed primarily to regulate the
relations between workmen and employers, workmen
and workmen, or employers and employers. It also
includes federations of two or more trade unions. The
union can also impose restrictive conditions on any
trade or business conduct.
2. Registration of Trade Unions (Section 4):
o Trade unions must register with the ‘Registrars of
Trade Unions’ established in different states.
o A minimum of seven members is required to
apply for registration, applying with the union's
rules and details about members and office
bearers.
o The Registrar, upon ensuring compliance with the
Act, registers the trade union. Certificate of
Registration (Section 9):
Once the application for registration is approved,
the Registrar issues a certificate of
registration, which serves as conclusive
evidence that the trade union has been duly
registered.
1. Cancellation of Registration (Section 10):
The Registrar can cancel a trade union's registration
either at the union's request or if it is proven that the
registration was obtained fraudulently, or if the union
violates the Act’s provisions, ceases to exist, or
contravenes any rules.
2. Annual Statutory Returns (Section 28):
Registered trade unions must submit annual returns
detailing membership, general funds,
income, expenditures, assets, and liabilities to the
Registrar. The Labour Bureau consolidates this data
and compiles national statistics on trade unions.
1. Uses of Funds (Section 15):
The general funds of a registered trade union can only
be used for purposes specified in the Act. Unions may
create a separate fund for political and civic
activities. Still, contributions to this fund are voluntary,
and members who do not contribute cannot be
excluded from other union benefits.
2. Maintenance of Accounts (Section 20):
As per the union's rules, the account books and
membership list of a registered trade union must be
accessible for inspection by union office-bearers or
members.
3. Disqualification from Office (Section 21A):
A person is disqualified from holding office in a trade
union if:
o They are under 18 years of age.
o They have been convicted of an offence
involving moral turpitude, and five years have
not passed since their release.
1. Amendments through the Trade Unions
(Amendment) Act, 2001:
o A trade union can only be registered if at
least 10% or 100 workers, whichever is lower,
are members on the registration date.
o Registered unions must always maintain at
least 10% or 100 workers as members.
o If a union's registration is refused or cancelled,
they can appeal to the Industrial Tribunal or
Labour Court.
o Most office bearers of a union must be currently
employed in the industry or establishment, with
some exceptions.
o Minimum membership fees are set at ₹1 for rural
workers, ₹3 for unorganized sectors, and ₹12
for all others.
o Retired or retrenched workers are allowed to hold
office in the union.
o Unions can establish separate political funds to
promote civic and political interests.
Growth of Trade Unions in India
Number of Registered Unions:
In 2008, the number of registered trade unions grew
by 31% from 1999 to 84,642 unions. However,
only 11.47% of these unions submitted returns,
with Tamil Nadu and Rajasthan leading in the
number of registered unions.
Workers’ Unions:
Out of 27,063 workers' unions, 88.76% were state
unions, and the rest were central unions. The most
significant number of these unions belonged to
the manufacturing sector.
Income and Expenditure of Workers’ Unions:
In 2008, workers' unions' total income and expenditure
were ₹113.81 crore and ₹80.99 crore, respectively,
with Tamil Nadu reporting the highest income and
expenditure.
Employers’ Unions in 2008
Number of Employers’ Unions:
There were 74 registered employers' unions in 2008,
out of which only 7 unions (9.46%) submitted returns.
These unions had a total membership of 6,924, with
women making up 14.62% of the members.
Income and Expenditure of Employers’ Unions:
The income and expenditure of these unions
were ₹0.37 crore and ₹0.33 crore, respectively, with
the manufacturing sector leading in terms of both
income and expenditure.
Major Trade Union Organizations in India
Some well-known central trade unions in India include:
All India Trade Union Congress (AITUC)
Bharatiya Mazdoor Sangh (BMS)
Centre of Indian Trade Unions (CITU)
Hind Mazdoor Sabha (HMS)
Indian National Trade Union Congress (INTUC)
Registration of Trade Unions
Appointment of Registrars (Section 3): The
government appoints a Registrar for each state to
oversee trade union registration.
Mode of Registration (Section 4): At least seven
members are required to apply for trade union
registration. Specific rules ensure the validity of
applications even if some members withdraw.
Provisions for Registration (Section 6): The
application must contain the union’s name, objectives,
membership list, and rules.
Certificate of Registration (Section 9): Once
approved, the Registrar issues a certificate, making
the union legally recognized.
Rights and Liabilities of Registered Trade Unions
1. Maintenance of Funds (Section 15)
o The general fund of a trade union can be used for
activities like payment of office-bearers, settling
disputes, providing allowances, and offering
educational or social benefits to members.
2. Immunity from Legal Action (Sections 17-18)
o Trade unions and their members are immune from
criminal conspiracy charges under Section
120B of the Indian Penal Code for actions
conducted to protect their legitimate interests.
o They are also protected from civil suits in certain
cases relating to trade disputes.
3. Political Funds (Section 16)
o Trade unions can maintain separate funds for
political purposes like supporting candidates for
legislative bodies or organizing political meetings.
Contributions to this fund are voluntary.
Dissolution and Amalgamation of Trade Unions
1. Change of Name or Amalgamation (Sections 23-
26)
o A trade union can change its name or amalgamate
with another union with the consent of two-thirds
of its members.
2. Dissolution (Section 27)
o A union can be dissolved by notifying the
Registrar. The union’s funds will be distributed
among members unless specified otherwise in its
rules.
Penalties and Legal Provisions
1. Supplying False Information (Section 32)
o Providing false information regarding trade unions
is punishable by a fine of up to ₹200.
2. Failure to Submit Returns (Section 31)
o Not submitting required documents or making
false entries can result in fines ranging from ₹5 to
₹500.
Conclusion
The Trade Unions Act 1926 notes is vital for protecting
workers' rights and ensuring they have a collective voice in
negotiations with employers. By regulating the registration
and functioning of trade unions, the Act promotes industrial
harmony and provides a legal framework for workers to
organize and safeguard their interests.
