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THE TRADE UNIONS ACT, 1926
THE TRADE UNIONS ACT, 1926
[ACT 16 0F 1926]
An Act to provide for the registration of Trade Unions and in certain respects of define
the law relating to registered Trade Unions.
Whereas it is expending to provide for the registration of Trade Unions and in certain respect to define the law relating to registered Trade Unions : It is hereby enacted as follows : CHAPTER I
PRELIMINARY
1- Short title, extent and commencement - (1) This Act may be called the Trade Unions Act. 1926. (2) It extends to the whole of India. (3) It shall come into force on such date as the Central Government may by notification in the official Gazette, appoint. 2- Difinitions - In this Act, ‘the appropriate Government’ means, in relation to Trade Unions whose objects are not confined to one State the Central Government, and in relation to other Trade Unions, State Government, and unless there is anything repugnant in the subject or context- (a) “executive” means the body, by whatever name called, to which the management of the affairs of a Trade Union is entrusted; (b) “Officer-bearer” in the case of a Trade Union includes any member of the executive thereof, but does not include an auditor; (c) “prescribed” means prescribed by regulations made under this Act; (d) “registered officer” means that office of a Trade Union, which is registered under this Act as the Head officer thereof; (e) “restored Trade Union” means a Trade Union registered under this Act; (f) “registrar” means -
i. a Registrar of Trade Unions appointed by the appropriate Government under section 3 and includes an, additional or Deputy Registrar or 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; (g) “Trade dispute” 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 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 trade dispute arises ; and (h) “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 employees and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes and federation of two or more trade unions : Provided that this Act shall not affect - (i) Any agreement between partners as to their own business; (ii) Any agreement between an employer and those employed by him as to such employment ; or (iii) Any agreement in consideration of the sale of the goodwill of a b business or instruction in any profession, trade of handicraft.
CHAPTER II REGISTRATION OF TRADE UNIONS 3- Appointment of Registrars - (1) The appropriate Government shall appoint a person to be the Registrar to Trade Unions for each State. (2) The appropriate Government may appoint as may additional and Deputy Registrars of Trade Unions as it thinks fit for the purpose of exercising and discharging under the superintendence and direction of the Registrar, such powers and functions of the Registrar under this Act as it may, by order, specify and define the local limits within which
accordance with the provisions of this Act, and the rules there of 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 purpose for which the general funds of a 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 of 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 officer bearers of the Trade Union shall be appointed and removed; (i) The safe custody of the funds the Trade Union, and annual audit, in such manner as may be prescribed, of the accounts thereof and adequate facilities for the inspection of the accounts books by the officer bearers and members for the Trade Union; and (j) The manner in which the Trade Union may be dissolved. 7- Powers to call for further particulars and to require alleration of name - (1) The Registrar may 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.
(2) 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. 8- Registration.-The Register, 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.
NOTE
Scope of.- Once the Trade Union is registered by the Registrar of Trade Union, Certificate of Registration continues to hold good until it is cancelled. [IFFCO Phulpur Karmchari Sangh v. Registrar of Trade Union, (1992) II Lab LJ 239 (All).] 9- Certificate of registration.-The Registrar, on registering a Trade Union under section 8, shall a certificate of registration in the prescribed form under this Act. 10- 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 obtain by fraud or kistake, 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;
NOTE
Scope of.-Where Trade Union not filed returns due to misunderstanding of accounting year and such returns was filed soon after receipt of show cause notice form Registrar of
14 - Certain Acts not to apply to registered Trade Unions.- The following Acts, namely:- (a) the Societies Registration Act, 1860 (21 of 1860) (b) the Cooperative Societies Act, 1912 (2 of 1912), and (c) the Companies Act, 1956 (1 of 1956), shall not apply to any registered Trade Union, and registration of any such Trade Union under any such Act shall be void.
CHAPTER III
RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS
15- Objects on which general funds may be spent.- The general funds of a registered Trade Union shall not be spent on any other object than the following, namely:- (a) the payment of salaries, allowances and expenses to office bearers of the Trade Union. (b) the payment to expenses for the administration of the Trade Union, including audit of the accounts of the general funds of the Trade Union. (c) the prosecution or defence of any legal proceeding to which the Trade Union or any member thereof is a party, when such prosecution or defence is undertaken for the purpose of securing or protecting any rights of the Trade Union as such or any rights arising out of the relations of any member with his employer or with a person whom the member employees; (d) the conduct of trade dispute on behalf of the Trade Union or any member thereof; (e) the compensation of members for loss arising out of trade disputes; (f) allowances to members of their dependency on account of death, old age, sickness, accidents or unemployment of such members; (g) the issue of, or the undertaking of liability under policies of assurance on the lives of members, or under policies insuring members against sickness, accident or unemployment; (h) the provision of educational, social or religious benefits for members (including the payment of the expenses of funeral or religious ceremonies for deceased members) or for the dependants of members; (i) the upkeep of a periodical publicised mainly for the purpose of discussing questions affecting employers or workman as such; (j) the payment, in furtherance of any of the objects on which the general funds of the Trade Union may be spent, of contributions to any cause intended to benefit workman in general, provided that the expenditure in respect of such contributions in any financial year shall not at any time during that year be in excess of one fourth of the combined total of the gross income which has up to
(d) the registration of electors or the selection of a candidate for any legislative
body constituted under the Constitution or for any local authority; or (e) the holding of political meetings of any kind, or the distribution of political literature or political documents of any kind.
(2-A) In its application to the State of Jammu and Kashmir, references in subsection
(2) to any legislative body constituted under the Constitution shall be construed as including
references to the Legislature of that State.
(3) No member shall be compelled to contribute to the fund constituted under
subsection (1) ; and a benefits of the Trade Union, or placed in any respect either directly or
indirectly under any disability or at any disadvantage as compared either directly or
indirectly under any disability or at any disadvantage as compared with other members of
the Trade Union (except in relation to the control or control or management of the said fund)
by reason of his not contributing to the said fund; and contribution to the said fund shall not
be made a condition for admission to the Trade Union.
17- Criminal conspiracy in trade disputes.-No office-bearer or members of a registered
Trade Union shall be liable to punishment under subsection (2) of section 120-B of the
Indian Penal Code (45 of 1860), in respect of any agreement made between the members
for the purpose of furthering any such object of the Trade Union as it specified in section 15
unless the agreement is an agreement to commit an offence.
NOTE
Scope of.-Trade Union leader obstructed work in the factory for five hours protesting against deputation of work man to work in another section, It was held that a worker inside
the factory is bound to obey the reasonable instructions given by his superiors and carry out the duties assigned to him. The mere fact that such worker is a Trade Union leader does not confer on him any immunity in that regard. A trade union leader has no right in law to share managerial powers and he cannot dictate any worker individually or to the workmen generally about the manner in which they have to do their work or discharge their duties. A Trade Union can spouse the cause of the workers and can resort to order a workman to stop his work or otherwise obstruct the work of the establishment. When officials of a Trade Union obstruct the work the management is justified in proceeding against such worker and deal with him effectively. [West India steel company Ltd. v. cez, (1990) II Lab LJ 133 (Kerala).] 18- 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 incompletion 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 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 tortuous act done in contemplation 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 even by, the executive of the Trade Union. 19- Eforceability of agreement.- Notwithstanding anything contained in other law for the
time being in force, an agreement between the members of a registered Trade Union shall
not be void or voidable merely by reason of the fact that any of the objects of the agreement
are in restraint of trade;
Provided that noting in this section shall enable any Civil Court to entertain any legal
proceeding instituted for the express purpose of enforcing or recovering damages for the
Provided that the appropriate Government may, by special or general order, declare that the provisions of this section shall not apply to any Trade Union or class of Trade Union specified in the order. 23- Change of name.-Any registered Trade Union may. With the constant of not less than two-thirds of the total number of its members and subject to the provisions of section 25, change its name. 24- Amalgamation of Trade Union.-Any two or more registered Trade Unions any become amalgamated together as one Trade Unions one Trade Union with or without dissolution or division of the funds of such Trade Unions or either of then. Provided that the votes of at least one-half of the members of each or every such Trade Union entitled to vote are recorded, and that at least sixty per cent of the votes recorded are in favour of the proposal. 25- Notice of change of name or amalgamation. -(1) Notice in writing of every change of name of every amalgamation, signed, in the case of a change of name, by the Secretary and by seven members of the Trade Union changing its name, and, in the case of an amalgamation, by the Secretary and by seven members of each and every Trade Union which is party thereto, shall be sent to the Register, and where the head office of the amalgamated Trade Union is situated in a different State, to the Registrar of such State. (2) If the proposed name is identical with that by which any other existing Trade Union has been registered, or in the opining 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 refuse to register the change of name. (3) Save as provided in subsection (2), the Registrar shall, if he is satisfied that the provisions of this Act in respect of change of name have been complied with, register the change of name in the register referred to in section 8, and the change of name shall have effect from the date of such registration. (4) The Registrar of the state in which the head office of the amalgamated Trade Union is situated shall, if he is satisfied that the provision of this Act in respect of amalgamation have been complied with and the Trade Union formed there by is entitled to registration under section 6, register the Trade Union in the manner, provided in section 8, and the amalgamation shall have effect from the date of such registration.
- Effects of change of name and of amalgamation - (1) The change in the name of the registered Trade Union shall not affect any rights of obligation of the Trade Union or render defective any legal proceeding by or against the Trade Union, and any legal proceeding which might have been continued or commenced by or against it by its former name may be continued or commenced by or against it by its new name. (2) An amalgamation of two or more registered Trade Union shall not prejudice any right of any of such Trade Unions or any right of a creditor or any of them. 27- Desolation -(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, be sent to the Registrar, and shall be registered by him it 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 provided 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. 28- 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 of the 31st day of December next preceding such prescribed date, and of the assets and liabilities of the Trade Union existing on 31st day of December. The statement shall be prepared in such form and shall comprise such particulars as any be prescribed.
(2) Together with the general statement there shall be sent to the Registrar a statement showing all changes of officer-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.
(d) The conditions subject to which inspection of documents kept by Registrar shall be allowed and the fees which shall be chargeable in respect of such inspection ; and (e) any matter which is to be or may be prescribed. 30- Publication of regulations- (1) The power to make regulations conferred by section 29 is subject to the condition of the regulations being made after previous publication. (2) The date to be specified in accordance with clause (3) of section 23 of the General Clauses Act, 1897 (10 of 1897), as that after which a draft of regulations proposed to be made will be taken into consideration shall not be less than three months from the date on which the draft of the proposed regulations was published for general information. (3) Regulation so made shall be published in the Official Gazette, and on such publication shall have effect as if enacted as if enacted in this Act. CHAPTER V PENALTIES AND PROCEDURE 31- Failure to submit returns - (1) If default is made on the part of any registered Trade Union is giving any notice or sending any statement or other document as required by or under any provision of this Act, every officer-bearer or other person bound by the rules of the Trade Union to give or send the same, or if there is no such officer 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 a default, with an additional fine which may extent to five rupees for each week after the first during which the default continues : Provided that 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. 32- 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 alteration 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 rules of an 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. 33- Cognizance of offences.- (1) No court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try any offence under this Act. (2) no court shall take cognizance of any offence under this Act, unless complaint thereof has been made by, or with the previous sanction of, the Registrar or, in the case of an offence under section 32 by the person to whom the copy was given, within six months of the date on which the offence is alleged to have been committed.
CENTRAL TRADE UNION REGULATIONS, 1938
1- Title and Application- (1) These regulations may be called the Central Trade Union Regulations, 1938. (2) The regulations apply to Trade Unions whose objects are not confined to one State.
- Definitions - In these regulations - (a) “The Act” means the Indian Trade Union Act, 1926; (b) “Form” means a form appended to these regulations; (c) “Section” means a Section of the Act.
- Application of registration - Every application for registration of a Trade Union shall be made in Form A.
- Register of Trade Union - The Register of Trade Union referred to in Section 8 shall be maintained in Form B.
- Certificate of registration - (1) The certificate of registration issued by the Registrar under section 9 shall be in Form C. (2) When the Registrar registers a change of name under section 25, subsection (3), he shall certify under his signature at the foot of the certificate on its presentation to him by the Secretary that the new name has been registered.
- Cancellation or registration - The Registrar on receiving an application for cancellation of registration shall, before granting the application, satisfy himself that the
(a) by any examiner of local fund accounts ; or (b) by any local fund auditor appointed by the State Government; (c) by the person, who, having held and appointment under Government in any Audit or accounts departments is in receipt of a pension of not less than Rs. 200 per mensem. (3) Where a membership of a Trade Union did not at any time during the financial year exceed 750, the annual audit of the accounts may be conducted - (a) by any two person holding office as Magistrates or judges or as members of any municipal council, district board, or legislative body; or (b) by any person, who, having held an appointment under Government in any audit or accounts department, is in receipt of a person from Government of not less than Rs. 75 a month; or (c) by any auditor appointed to conduct the audit of any cooperatives societies by Government or by the Registrar of Cooperatives Societies or by any State Cooperatives organization recognized by Government of this purpose. (4) Where the membership of a Trade Union did not at any time during the financial year exceed 250, the annual audit of the accounts may be conducted by any two members of the union. (5) Where the Trade Union is a federation of unions, and the member of unions affiliated to it at any time during the financial year did not exceed 50, 51 or 52, respectively, the audit of the accounts of the federation may be conducted as if it had not any time during the year had a membership of more than 2,500, 750 or 250, respectively.
- Exception.- Notwithstanding anything contained in Regulation 13, on person, who at any time during the year, was entrusted with any part of the funds or securities belonging to the Trade Union shall be eligible to audit the accounts of the Union.
- Audit- The auditor or auditors appointed in accordance with the regulations
shall be given access to all the books of the Trade Union and shall verify the annual return
with the accounts and vouchers relating thereto and shall thereafter sign the auditor’s
declaration appended to Form D, indicating separately on that form under his signature or
their signatures a statement showing in what respect he or they find the return to be
incorrect, un vouched or not in accordance with the Act. The particulars given in this
statement shall indicate -
(a) Every payment which appears to be unauthorised by the rules of the Trade Union of contrary to the provision of the Act,
(b) The amount of any deficiency or loss which appears to have been incurred by the negligence or misconduct of any person, (c) The amount of any sum which ought to have been but is not brought to account
by any person.
- Audit of political funds - The audit of the political funds of a registered Trade
Union shall be carried out along with the audit of the general account of the Trade Union
and by the same auditor or auditors.
- Inspection. -(1) The register of Trade Union maintained in accordance
with Regulation 4 shall be open to unspection by any person on payment of a fee of annes
eight.
(2) Any documents in the possession of the Registrar received from a registered
Trade Union may be inspected by any member of that Union on payment of a fee of Annas
eight for each document inspected.
(3) Documents shall be open to inspection every day on which the office of the
Registrar is open and within such hours as may be fixed for this purpose by the Registrar.
(4) The Registrar may supply a certified copy of any such document to a registered Trade Union or a member thereof on payment of annas twelve for the first two
