Trade Unions Act, 1926

Trade Unions Act, 1926 Objective The inhume treatment that workers were receiving, the excessive hours of work, filthy and unsafe working conditions, poor or no housing at all, harsh and unjust supervision, intolerably low wages and child labour; workers were treated like tools. They were used as the employers wished and thrown away when no longer useful. So the workers realized they must help themselves. They formed unions. Unity was their strength. And gradually, through one improvement after another, they improved their conditions; more respect was shown, hours were shortened, pay was increased, leave and holidays were granted, safety measures were taken. Slowly but surely the workers began, because of the union, to be treated more and more like a human being and not like a machine. Since trade unions had no legal protection before 1926, the purpose of the Trade union Act was to give the trade unions a legal status. "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. “Workmen” means all persons employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises. “Office bearer” in the case of a Trade Union, includes any member of the executive thereof, but does not include an auditor; “Registered Office” means that office of a Trade Union, which is registered under this Act as the Head Office thereof. “Registered trade union’ means a Trade Union registered under this Act. "Registrar" means-- (i) a Registrar of Trade Unions appointed by the appropriate Government under section 3, and includes any Additional or Deputy Registrar of Trade Unions; and (ii) in relation to any Trade Union, the Registrar appointed for the State in which the head or registered office, as the case may be, of the Trade Union is situated; Mode of registration. (1) 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. (2) Where an application has been made under sub-section (1) 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 who made 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. Example, if 10 members have submitted an application but before official registration, 4 people backed out then also it will be processed normally. Be it made clear that even after its registration there is no provision of recognition of trade union. Thus recognition of a trade union is, by and large, a matter of agreement between the employer and the trade union except in the State of Madhya Pradesh and Maharashtra where there is a separate legislation in this context. However, in public undertakings, recognition to trade unions is accorded under the ‘Code of Discipline in Industries’ but that too is by mutual agreement since the Code of Discipline in Industries has no legal force. (Code of Discipline is mutually agreed terms and conditions) Application for registration. (1) 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:-- (a) the names, occupations and addresses of the members making the application; (b) the name of the Trade Union and the address of its head office; and (c) the titles, names, ages, addresses and occupations of the office-bearers of the Trade Union. (2) 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. 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 the 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 [office-bearers required under section 22 to form the executive of the Trade Union; (ee) the payment of a subscription by members of the Trade Union which shall be not less than twenty-five naye paise per month per member; (f) 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; (g) the manner in which the rules shall be amended, varied or rescinded; (h) the manner in which the members of the executive and the other office-bearers of the Trade Union shall be appointed and removed; (i) 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 1[office-bearers] and members of the Trade Union; and (j) the manner in which the Trade Union may be dissolved. Registration 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. The Registrar, on registering a Trade Union, 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. Cancellation of registration. A certificate of registration of a Trade Union may be withdrawn or cancelled by the Registrar-- (a) on the application of the Trade Union to be verified in such manner as may be prescribed, or (b) 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 wilfully 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: Provided that not less than two months' previous notice in writing specifying the ground on which it is proposed to withdraw or cancel the certificate shall be given by the Registrar to the Trade Union before the certificate is withdrawn or cancelled otherwise than on the application of the Trade Union. Registered office. All communications and notices 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, and the changed address shall be recorded in the register referred to in section 8. Immunity from civil suit in certain cases (1) No suit or other legal proceeding shall be maintainable in any Civil Court against any registered Trade Union or any office-bearer or member thereof 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 or of his labour as he wills. (2) A registered Trade Union shall not be liable in any suit or other legal proceeding in any Civil Court in respect of any tortious act done in contemplation or furtherance of a trade 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. Right to inspect books of Trade Union. The account books of a registered Trade Union and the list of members thereof shall be open to inspection by an office-bearer or member of the Trade Union at such times as may be provided for in the rules of the Trade Union. Dissolution. (1) When a registered Trade Union is dissolved, notice of the dissolution signed by seven members and by the Secretary of the Trade Union shall, within fourteen days of the dissolution, he sent to the Registrar, and shall be registered by him if he is satisfied that the dissolution has been effected in accordance with the rules of the Trade Union, and the dissolution shall have effect from the date of such registration. (2) Where the dissolution of a registered Trade Union has been registered and the rules of the Trade Union do not provide for the distribution of funds of the Trade Union on dissolution, the Registrar shall divide the funds amongst the members in such manner as may be prescribed. Returns. (1) There shall be sent annually to the Registrar, on or before such date as may be prescribed, a general statement, audited in the prescribed manner, of all receipts and expenditure of every registered Trade Union during the year ending on the 31st day of December next preceding such prescribed date, and of the assets and liabilities of the Trade Union existing on such 31st day of December. The statement shall be prepared in such form and shall comprise such particulars as may be prescribed. (2) Together with the general statement there shall be sent to the Registrar a statement showing all changes of office-bearers made by the Trade Union during the year to which the general statement refers, together also with a copy of the rules of the Trade Union corrected up to the date of the despatch thereof to the Registrar. (3) A copy of every alteration made in the rules of a registered Trade Union shall be sent to the Registrar within fifteen days of the making of the alteration. (4) For the purpose of examining the documents referred to in sub-sections (1), (2) and (3), the Registrar, or any officer authorised by him, by general or special order, may at all reasonable times inspect the certificate of registration, account books, registers, and other documents, relating to a Trade Union, at its registered office or may require their production at such place as he may specify in this behalf, but no such place shall be at a distance of more than ten miles from the registered office of a Trade Union. Failure to submit returns. (1) If default is made on the part of any registered Trade Union in giving any notice or sending any statement or other document as required by or under any provision of this Act, every office-bearer or other person bound by the rules of the Trade Union to give or send the same, or, if there is no such 1[office-bearer] or person, every member of the executive of the Trade Union, shall be punishable with fine which may extend to five rupees and, in the case of a continuing default, with an additional fine which may extend to five rupees for each week after the first during which the default continues: Provided that the aggregate fine shall not exceed fifty rupees. (2) Any person who wilfully makes, or causes to be made, any false entry in, or any omission from, the general statement required by section 28, or in or from any copy of rules or of alterations of rules sent to the Registrar under that section, shall be punishable with fine which may extend to five hundred rupees. Supplying false information regarding Trade Unions. Any person who, with intent to deceive, gives to any member of a registered Trade Union or to any person intending or applying to become a member of such Trade Union any document purporting to be a copy of the rules of the Trade Union or of any alterations to the same which he knows, or has reason to believe, is not a correct copy of such rules or alterations as are for the time being in force, or any person who, with the like intent, gives a copy of any rules of any unregistered Trade Union to any person on the pretence that such rules are the rules of a registered Trade Union, shall be punishable with fine which may extend to two hundred rupees 1947-present: Post-independence trade unionism Post-independence, trade unions became increasingly tied with party politics. Rise of regional parties has led to a proliferation in their numbers with each party opting to create its trade union. However, their influence has been somewhat reduced after the liberalisation post-1991. Issues like labour code reforms and minimum wage remains a political hot potato due to the opposition from the trade union leadership. Major Labour Unions and their Political Affiliation All India Trade Union Congress – Communist Party of India. Indian National Trade Union Congress – Indian National Congress. Bhartiya Mazdoor Sangh – Bharatiya Janata Party. Centre for Indian Trade Unions – CPI(M). Hind Mazdoor Sabha – Samajwadi Party. Self Employed Women’s Association – Unaffiliated. India’s decisive shift towards market-led growth post-1991 has raised a lot of questions about the role of labour unions. Often, they are seen as an impediment to industrialisation and investment. However, their role 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. Democratic trade unionism is also a must in avoiding workers coming under the influence of radical and anti-national elements. This is particularly important in the environment of rising socio-economic inequality post liberalisation.