Trade Union Act,

1926
Until the beginning of the 20th Century, trade union activities were
not considered lawful in most of the countries, including India.

The Indian Trade Union Act, 1926 was enacted on the pattern of
English Law.

It came into force with effect from 1st June, 1927.

The Act was amended in 1929, 1942, 1951, 1960, 1964, 1970 and
1974.

The amending Act of 1974 deleted the word Indian from the title
of the Act.

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 TRADE UNION ACT, 1926
The Trade Unions Act, 1926 provides for
registration of trade unions to enable participation
of trade unions in collective bargaining.
It also confers on a registered trade union certain
protection and privileges.
The Act extends to the whole of India except the
State of Jammu & Kashmir and applies to all kinds
of unions of workers and associations of
employers, which aim at regularizing labour
management relations.

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 A Trade Union is a combination
whether temporary or permanent,
formed for regulating the relations
not only between workmen and
employers but also between
workmen and workmen or between
employers and employers.

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Registration of Trade Unions
The government shall appoint a person to
be the Registrar of Trade Union for the
State.
The Government may also appoint as
many Additional and Deputy of Trade
unions as it thinks fit for the purpose of
exercising powers and functions of the
Registrar under this Act.

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Application for registration
Every application for registration of trade union
shall be made to the registrar and shall
accompanied with the rules of the trade union and
a statement of the following particulars, namely:
The names, occupations and address of the
members making application
The name of the trade union and the address of its
head office
The titles, names, ages, addresses and occupation
of the office bearers of the trade unions

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 Provisions to be contained in the
rules of trade unions
A trade union is entitled to registration only if it is in
accordance with the provisions of the act and its rule
provide for the following matters, namely:
The name of the trade union
The whole of the objectives for which the trade union
has been established
The whole of the purposes for which the general
funds of the trade union shall be applicable, all the
purposes to which funds are lawfully applicable
under this act
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 The maintenance of a list of its members of the trade union and

adequate facilities for the inspection thereof by the office bearer

and members of the trade union

The payment of a subscription by members of the trade union

which shall be not less than twenty- five paisa per month per

member

The manner in which the rules shall be amended

The manner in which the members of the executive and the other

office bearers of the trade unions shall be appointed and removed.

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The safe custody of the funds of Trade Union, and 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.

The manner in which the Trade Union may be dissolved.

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 Powers of the Registrar

1.Power to call for Further

Particulars:
. The Registrar may call for further
information for the purpose of satisfying
himself that any application for registration
of a Trade Union,
. The registrar may refuse to register Trade
Union until such information is supplied.
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2.Power to require Alteration
of Name:
. The Registrar can ask the Trade Unions to alter
the name of their trade union if it is identical to
the existing ones.

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3. Registration:
. The Registrar, after being satisfied with the requirements of
this Act, shall register the Trade Union by entering in the
register, to be maintained in such a form as may be
prescribed.

Where an application is filed before the Registrar for

registration of the trade union under the provisions of the Act,
the duties of Registrar are to examine the application and
look at the object for which the union is being formed. If all
the requirements of the Act and regulation made there under
are compiled with, it is his duty to register the trade union.
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 4. Certificate of Registration:
The Registrar on registering a Trade Union under Section 8, shall issue a certificate

of registration which shall be a conclusive evidence of its registration under the

Act.

Legal Status of a Registered Union:

1. It becomes a body corporate.

2. It gets perpetual succession and common seal. (continuation of corporate

existence)

3. It can acquire and hold both movable and immovable property.

4. It can enter into contracts with others.

5. It can sue and be sued in its registered name.

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 5. Cancellation of registration (sec.10)
The registrar has been empowered to cancel the
registration of the trade union in the following
cases:
1. Certified copy of cancellation received from the
trade union.
2. If the registrar is satisfied that the certificate has
been obtained by fraud or mistake.
3. Where the trade union has ceased to exist.
4. Where the union has willfully contravened any
provision of this act .

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 Registered office (sec.13)
1. All communications and notices to a
registered trade union may be
addressed to its registered office.
2. Notice of any change in the address
of the head office shall be given
within fourteen days of such change
to the registrar.

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 Privileges of a Registered Trade
Union:
1. Immunity from Criminal Prosecution:

No office bearer of a registered Trade Union shall be

liable to punishment for criminal conspiracy in
respect of any agreement made between the
members for the purpose of furthering ant of its
objects unless the agreement is an agreement to
commit an offence.

Section 17 of Trade Union Act gives immunity to

members of registered Trade Union from criminal
conspiracy in connection with trade disputes.

Registered Trade Union also enjoys the right to go on 16a

strike and for the purpose to persuade their
2. Immunity from civil suit (sec18)
. No legal proceedings shall be maintainable in any civil
court against any registered trade union due to trade
dispute unless the acts breaks contract of employment
or interferes with the trade, business or employment.

3. Immunity from Tortious Liability:

. 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 furtherance of a trade
dispute by an agent of the trade union.

. This provision extends protection to an agent of the

trade union from tortious liability if the acts are done
by him in furtherance of trade dispute.

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3. Enforceability of Agreement (Sec. 19)

An agreement between the members of registered trade

union shall not be void or voidable merely by reason of the

fact that any of the objects of the agreement is in restraint

of trade.

4. Rights to inspect books of trade union (sec.20):

The account books of a registered trade union and the list

of members shall be open for inspection by an office

bearer or members of the trade union at such time as may

be provided for in the rules of the trade union.

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5. Rights of minors to membership of trade
unions (sec.21):
Any person who has attained the age of
fifteen years may be a member of the registered
trade union, enjoy all the rights of a member
and execute all instruments necessary to be
executed.

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 GENERAL FUNDS
Section 15 of the Act provides certain restrains
against expenditure out of the general funds of
the registered trade union.
It lays down that the general fund of
a registered trade union shall not be
spent on any other objects than the
following, namely:

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1. The payment of salaries, allowances and
expenses to the office-bearers of the
Trade Union;

2. The payment of expenses for the

administration of the Trade Union
including audit of accounts of general
funds;

3. The allowances and compensation of

members for loss arising out of Trade
Unions.

4. The provisions of education, social or

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5. The prosecution or defense of any legal
proceedings to which the Trade Union or any
member is a party;

6. The conduct of trade dispute on behalf of

the Trade Union or any member thereof;

7. The issue of, or the undertaking of liability

under, policies of assurance on the lives of
members.

8. The upkeep of periodical published mainly

for the purpose of discussing questions
affecting employers or workmen as such.
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