Trade Union Registration in India: Legal Framework, Procedures & Key Benefits

Introduction – Trade Union registration India

A Trade Union may be a registered, unregistered or a recognised Trade Union. There is a basic distinction between these different unions. The members of a recognised and registered Trade Union enjoy such benefits as the members of an unregistered Union do not. 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.

Role and Appointment of Registrar of Trade Unions

The appropriate government appoints a person to be the Registrar of trade unions for each State. Further, the appropriate government may appoint as many additional and deputy Registrars as it thinks fit (Sec. 3).

The Registrar is the authority charged with the duty of administering the provisions of t! Act. Hence, the High Court’s order designating the General Manager, North Eastern Railway as the authority to hold the election of the North Eastern Railway Employees Union was held erroneous. Therefore, the Apex Court directed that elections to be held under the supervision of the Registrar or an officer designated by him for that purpose [North Eastern Railway Employees Union v IIIrd ADJ (2006) 10 SCC 417].

Procedure & Essential Conditions for Trade Union Registration

Before a Union can be granted registration, it is required to comply with certain formalities:

• It has to be sponsored by at least 7 members engaged in the trade/industry in connection to which trade union is to be formed (inserted by 2001 Amendment) who may apply by filing an application for registration to the Registrar of Trade Unions of the State in which the head office or registered office of the Trade Union is to be located. All the members applying for registration must subscribe their names to the rules of the Trade Union and also comply with the provisions of the Act relating to registration of Unions (Sec. 4).
• A proviso to Sec. 4(1) has been inserted by 2001 Amendment: Provided that no Trade Union of workmen shall be registered unless at least 10% or 100 of the workmen, whichever is less, engaged/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.
• The application for registration should be accompanied with a copy of rules of the Trade Union, its head office, and particulars like name of the members making the application and the addresses of members making the application and of the office-bearers of Union (Sec. 5). If the trade union has been in existence for more than 1 year, a general statement of its assets and liabilities has to be given.
• If more than half of the persons who applied for the registration cease to be members of the union or expressly dissociate themselves from the application, the application will be deemed to be invalid.
• A trade union is not entitled to registration unless the provisions of the Act, and the rules of the Union provide for the following matters (Sec. 6) – name and objects of the Union; the purposes for which the general funds of the Union shall be applicable; the maintenance of a list of the members of Union; the admission of ordinary and honorary members; minimum membership subscription of 25 paise per month; benefits or to be paid under which a member is entitled; the procedure for amendment of rules; and the manner of the dissolution of Trade Union.

Membership & Office-Bearers Requirements under Trade Unions Act

The written rules framed by the Trade Union making for the above matters generally govern and determine the relationship between the Union and its members. They as a matter of fact, provide guidelines for the internal management of the Union affairs. According to Sec. 6 the rules of a trade union must provide for whole of the objects for which the trade union has been established. It has been held by the Apex Court that the Court has no right to re-write the rules of a registered trade union by deleting any of them even if in repugnancy between the two rules. [LT. Commissioner, W.B. v Indian Sugar Mills Assn., AIR 1975 SC 506].

• A Trade Union shall not be entitled to registration unless the rules thereof provide for the following matter: “the duration of period being not more than 3 years, for which the members of the executive and other office-bearers of the Trade Union shall be elected” [Sec. 6(hh), inserted by 2001 Amendment]. Prior to the Amendment, the members of the executive, etc. were to be appointed and not elected.
• Proportion of Office-bearers to be Connected with the Industry [Sec. 22 as substituted by 2001 Amendment]: As per Sec. 22(1), at least half of the office bearers of a trade union of workers of unorganized sector must be engaged or employed in an industry to which the trade union is connected.

Formation of Multiple Trade Unions and Membership Continuity

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 Unions specified in the order. Save as otherwise provided in sub-sec. (1), all office-bearers of a registered Trade Union, except not more than one-third of the total number of the office-bearers or five, whichever is less, shall be persons actually engaged or employed in the establishment or industry with which the Trade Union is connected [Sec. 22(2)].

Explanation: For the purposes of this sub-section, an employee who has retired or has been retrenched shall not be construed as outsider for the purpose of holding an office in a Trade Union.⁶

No member of the Council of Ministers or a person holding an office of profit (not being an engagement or employment in an establishment or industry with which the Trade Union is connected), in the Union or a State, shall be a member of the executive or other office-bearer of a registered Trade Union [Sec. 22(3)].

The workmen of an establishment can form as many Unions as they like. There is nothing in the Act that bars the formation of rivals Unions or requires a Union applying for registration to give notice to all existing Unions [Keshoram Rayon Workers Union v Registrar AIR 1967 Cal 597].

When a Union seeks registration, all it has to do is to ensure that the provisions of the Act, Rules and Regulations made thereunder relating to registration of Trade Unions has been complied with by the body of workers applying for registration.

In Bokajan Cement Corporation Employees’ Union v Cement Corporation of India (AIR 2004 SC 245), held that membership of the union does not automatically cease upon termination of the employment. There is no provision in the Act on the Constitution of the trade union allowing for automatic cessation of membership on cessation of employment. Sec. 6(6) only provides that the rules of a trade union have a right to provide for the admission of those who are actually engaged or employed in industry as ordinary members so as to entitle a trade union to seek registration under the Act. Sec. 6(e) does not provide that on cessation of employment an employee would cease to be a member.

Duties and Powers of Registrar [Secs. 7, 8, 9]⁷

The primary function of the Registrar is to examine the applications made to him for registration and look at the objects of the Unions for which it may be formed. On compliance of statutory conditions provided in the Act, he shall grant registration certificate to Union (Secs. 8 and 9).

The Registrar, on registering a Trade Union under Sec. 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 the Act (Sec. 9). The registration gives a stamp of due formation of the Trade Union and assures the mind of the employer that the Trade Union is an authenticated body [Food Corporation of India Staff Union v Food Corporation of India 1995 LLR 309 (SC) 3 JJ]. The certificate of registration continues to hold good until it is cancelled [IFFCO, Phulpur Karmachari Sangh v Registrar of Trade Unions (1992) II LLJ 239 (All)].

The registration will be refused by the Registrar if the name under which a Trade Union is proposed to be registered is identical with that of any existing Trade Union or so nearly resembles such name as to be likely to deceive the public or the members of the either Trade Union. In such a case, the Registrar may require the persons applying for such registration to change the name of Union, and it shall be registered only after such alteration. The Registrar may also ask for further information which he thinks necessary for the purpose of satisfying himself that the application complies with the provisions of Secs. 5 and 6 of the Act (Sec. 7). The Registrar can refuse to register the trade union until he receives the information.

Sec. 8 imposes a statutory duty upon the Registrar to register the Trade Union on being satisfied that the Trade Union has complied with the requirements of the Act. It is mandatory for the Registrar to register a trade union if the Union satisfies all the technical requirements of this Act.

If the registration is unreasonably delayed (viz., no action taken on application for more than 3 months), a writ under Art. 226 of the Constitution can be issued [A.C.C. Rajanka Lime Stone Quarries Mazdoor Union v Registrar AIR 1958 Pat 175].

It may, however, be noted that a Trade Union registered under the Act is not a statutory body. It is not created by statute. Therefore, it is not amenable to writ jurisdiction [Chemosyn (P) Ltd. v Kerala Medical & Sales Representatives Assn. (1986) II LLJ 43 (Ker.)].

The Registrar is not a quasi-judicial authority and cannot, therefore, decide any disputed question of fact or law [O.N.G.C. Workmen’s Association v State of W.B. (1988) 57 FLR 522 (Cal)]. Provisions of Sec. 8 relate to only registration of a trade union. It is only a Civil Court which has jurisdiction to decide that dispute since under the Trade Unions Act, there is no provision permitting or empowering the Registrar to refer internal disputes relating to office-bearer for adjudication to any other forum [R.N. Singh v State of Bihar 1998 LLR 645]. No provision of law provides for holding of election under the supervision of Registrar, Trade Unions. Therefore, the petitioner is right in submitting that there is no legal authority for issuance of impugned orders under which the internal disputes were referred for adjudication by the independent Board and upon its recommendations, election is directed to be held under the supervision of Registrar of Trade Unions [Tata Workers Union v State of Jharkhand 2002 LLR 806 (Jhar HC)].

In N.E. Railway Employees’ Union, Gorakhpur v Deputy Labour Commnr./Deputy Registrar Trade Unions, Gorakhpur (2003) II LLJ 201 (All), it was held that the rights conferred under the Trade Unions Act are neither fundamental nor common law rights. Under the Act, the Registrar has absolute right, authority or jurisdiction to adjudicate upon any elections set up by any of the rival factions or any other person. However, the powers of the Registrar are purely administrative. An inquiry held by the Registrar in the presence of both the rival groups claiming to be office-bearers is administrative in nature. He has not been conferred with the power of holding elections of the Unions, or superintendence or conduct of the elections. Therefore, filing of a civil suit is the only remedy.

As a matter of principle, the Registrar has no power to declare the election of office bearers of a Union unconstitutional. But where the petitioner has himself submitted to the jurisdiction of the Registrar by requesting him to make an enquiry, he cannot subsequently be allowed to raise an objection that the Registrar acted without jurisdiction [Mukand Ram v S.I. Raza, Registrar AIR 1962 Pat 338].

LEADING CASE: IN RE INDIAN STEAM NAVIGATION WORKERS UNION

(AIR 1936 Cal 57)

[The duties of the Registrar were to examine the application and to look at the objects for which the Union was formed. If those objects were objects set out in the Act, and if those objects did not go outside the objects prescribed in the Act and if all the requirements of the Act and the regulations made thereunder had been complied with, it was his duty, to register the Union. In other words, he must register the Union. A Registrar only has to see whether all the technical requirements are being fulfilled and not whether it could be described as unlawful.]

In this case, the Registrar refused to register the Union for the application made for registration was said to be an attempt to have another Union. The Registrar came to the conclusion on the facts before him that this Union was really the I.G.N. Union under a different name. The I.G.N. Union has been declared to be an unlawful association. The Registrar relied on a letter written by the Secretary of the Union to the Bengal Government, wherein it was stated that he had been directed by the General Body of other Unions to approach the Government and request that the notification under Sec.16 of Criminal Law (Amendment) Act, declaring the other Union as unlawful association be withdrawn. The Registrar appeared to have acted on the basis of the letter without giving an opportunity to the Union of expressing its view on the statements in the letter.

The Calcutta High Court observed: The functions of the Registrar are laid down in Sec.8 – “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 Union.”

The Court held as follows: It was the duty of the Registrar to examine the application and to look at the objects for which the Union was formed. If these objects were those set out in the Act and if these objects did not outside the ambit of prescribed in the Act and if all the requirements of the Act and Regulations made thereunder had been complied with, he was thus duty to register the Union. The Registrar was not at that stage entitled to go into the question whether the Union was another Trade Union which was registered and which was seeking registration under a different name. The Registrar has no discretion in this matter. He is not justified in refusing registration on the ground that the Union applying for registration is a Union declared to be unlawful by the government under a different name.

The Registrar when he relied on the letter to the Bengal Government ought to have brought it to the notice of the Union before he acted on it and given it an opportunity to say anything that it had to say with regard to it. The Registrar should reconsider the question whether the requirements of the Act, with regard to registration, have been complied with or not on the face of the application.]

Minimum Requirement about Membership of a Trade Union [Sec. 9A]

A registered Trade Union of workmen shall at all times continue to have not less than 10% or 100 of the workmen, whichever is less, subject to a minimum of seven, engaged/employed in the establishment/industry with which it is connected, as its members. Sec. 9A has been inserted by the 2001 Amendment.

Cancellation of Registration [Sec. 10]

Power to withdraw or cancel registration of a Trade Union is given to the Registrar. The Registrar can exercise this power in the following cases (Sec. 10):–

On the application of the Trade Union.

• If the Registrar is satisfied that the Certificate of registration has been obtained by fraud or mistake.
•  Where the Trade Union has ceased to exist.
•  If the Union has wilfully and after notice from Registrar contravened any provisions of this Act or allowed any rule to continue in force which is inconsistent with the provisions of the Act or has rescinded any rule providing for any matter provision for which is required by Sec. 6.
•  If the Registrar is satisfied that a registered Trade Union of workmen ceases to have the requisite number of members
•  [inserted by 2001 Amendment].

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.

Regulation 9 of the Central Trade Union Regulations, 1938, provides that the Registrar on receiving an application for the cancellation of registration shall, before granting the application, satisfy himself that the withdrawal or cancellation of registration was approved by a general meeting of the Trade Union, or if it was not so approved, that it has the approval of the majority of the members of the Trade Union. For this purpose, he may call for such further particulars as he may deem necessary and examine any officer of the Union.

The cancellation of registration of a trade union in violation of the mandatory provisions of Sec. 10 is illegal and improper [Bombay Fire Fighters Services Union v Registrar (2003) II LLJ 1100 (Bom)]. The Registrar is not competent to cancel registration of a Trade Union without, in the first instance, giving requisite notice and giving an opportunity to the Union to show cause against the proposed action. Cancellation of Registration without giving second show-cause notice and without giving opportunity to represent the case is liable to set aside [Coromandel Cement Factory Employees’ Union v Deputy Registrar of Trade Unions & Deputy Commr. of Labour, Kurnool 2001 LLR 170 (AP)].

Before taking action under Sec. 10, the aggrieved person must be served not less than two months’ previous notice in writing and also state the grounds of cancellation/withdrawal of the certificate of registration to the trade unions and as such when no opportunity by way of notice prior to the order of cancellation is given, the order not communicated but sent on the request of the appellant for cancellation cannot be sustained [Tamil Nadu Govt. Press Workers’ Sangam v First Trade Union Addl. Registrar (Dy. Commr. of Labour) 2004 LLR 9 (Mad).

In Tata Electric Companies Officer’s Guild v Registrar of Trade Unions (1994), the Bombay High Court held that for a registrar to cancel the registration, wilful neglect of the notice is a must. Suppose the trade union sends the account statement upon notice of the registrar. In that case, the registrar cannot cancel the registration on the ground that the account statement was not filed earlier. The union did not file return earlier due to misunderstanding of accounting year and the return was filed soon after receipt of show cause notice from the registrar. Under these circumstances the cancellation of registration on the ground of non-filing of return was held improper. Thus, for cancellation of registration of a trade union, wilful contravention of the provisions of the Act is necessary.

A Trade Union whose registration has been cancelled has remedies in the form of appeal or to apply for fresh registration. If the appeal succeeds the order of cancellation could be held to be void ab initio and the Union would continue as if order of cancellation has not been passed. If fresh registration is permitted, it would be effective from the date thereof. Once the Registrar cancels or withdraws the registration of a Union he has no power to review it and thus cannot withdraw the order of cancellation because of subsequent events. In this case, the Registrar cancelled the registration of Union for contravention of Sec. 28 for not filing the annual returns. Later on, the Registrar withdrew cancellation of registration on the ground that returns have been submitted subsequently [Mukand Iron & Steel Works Ltd. v Registrar (1986) II LLJ 290 (Bom)].

The order of cancellation of the registration of a trade union cannot be withdrawn or revoked by the Registrar. Only remedy is to go in appeal or apply for re-registration [Rashtriya Mukand Employees’ Union v Mukand Iron & Steel Works Ltd. (1987) 55 FLR 507 (Bom)].

Appeal against Decision of Registrar [Sec. 11]

A limited right of appeal from the decision of the Registrar is granted by Sec. 11 of the Act. Any person aggrieved by the refusal of the Registrar to register a Trade Union or by the withdrawal or cancellation of a certificate of registration has the right of appeal to the High Court or an appropriate authority provided for the purpose. The appeal is to be preferred within 60 days of the date on which the Registrar passed the order against which the appeal is made [Regulation 19, Central Trade Union Regulations, 1938].

An appeal may be made to:

• The High Court, if the head office of the trade union is located in a presidential town;
• The labour court or industrial tribunal, if the head office of the trade union is located in its jurisdiction;
• If the head office of the trade union is in any other location, 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 [Sec. 11(1)].

According to Sec. 11(2), 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. The Court may also set aside the order for withdrawal or cancellation of the certificate. The Registrar must comply with any such order passed by the Appellate Court. As per Sec. 11(3), an appellate court shall follow the same procedure and have the same powers as it follows and has when trying a suit under the Code of Civil Procedure, 1908.

In Registrar of Trade Unions, W.B. v. Mihir Kumar Guha (1963) (Cal), it was held that a trade union whose head office is in a presidency town has only a single chance of appeal against the decision of the registrar, which is to the High Court, while a trade union whose head office is in mufassil has two chances of appeals, first in the local court and second in the High Court.

If the registration is unreasonably delayed (viz., no action taken on application for more than 3 months), a writ under Art. 226 of the Constitution can be issued [A.C.C. Rajanka Lime Stone Quarries Mazdoor Union v. Registrar AIR 1958 Pat 175].

Registered v. Unregistered Trade Union – Trade Union registration India

The Trade Union Act does not make it compulsory that every union or association must be registered under the Act. Unregistered unions or associations would not in any way be illegal (unless their object is illegal). This is emphatically so in the context of the fundamental right to form association guaranteed by Art. 19(1)(c) of the Constitution of India. However, if the Union is registered under the Act, it will get the immunities, privileges and other rights contemplated under the Act viz.:

• It becomes a body corporate by the name under which it is registered.
• It gets perpetual succession and a common seal.
•  It can acquire and hold both movable and immovable property.
• It can contract through agents.
•  It can sue and be sued in its registered name.

“Every registered Trade Union shall be a body corporate by the name under which it is registered, and shall have perpetual succession and a common seal with power to acquire and hold both movable and immovable property and to contract, and by the said name sue and be sued” (Sec. 13: Incorporation of Registered Trade Union).

Certain Acts, namely, the Societies Registration Act, 1860; the Co-operative Societies Act, 1912; and the Companies Act, 1956 shall not apply to any registered trade union, and the registration of any such trade union under any such Act shall be void (Sec. 14).

An unregistered Trade Union could not be sued in Tort by suing a member thereof in a representative capacity. The proper course in such a case was to sue a member for any cause of action that lay against that member. Therefore an unregistered Union is only a voluntary association of individuals having no corporate existence. It is not a legal entity. An unregistered Union cannot be sued and any appearance of officials on its behalf before the court is not right. Therefore any person aggrieved by a wrong committed by the members of such a Union should bring an action against all persons personally who were members of the Union at the time of the commission of alleged wrong.

Under the Trade Unions Act, 1926, an unregistered trade union or a trade union whose registration has been cancelled has no manner of right whatsoever. Even the rights available under the Industrial Disputes Act, 1947 have been limited only to those trade unions which are registered under the Trade Unions Act [Sec. 2(qq) of the Industrial Disputes Act w.e.f. 21.8.1984 defined a trade union to mean a trade union registered under the Trade Unions Act, 1926] [B. Srinivasa Reddy v. Karnataka Urban Water Supply & Drainage Board Employees Assn. (2006) 11 SCC 731].

A Trade Union registered under the Act is entitled to all the protections (immunities) and rights contemplated by the Act.

Rights and Privileges of Registered Trade Unions

1. As per Sec. 13, upon registration, a trade union becomes a legal entity and as a consequence, it gets perpetual succession and a corporate seal, it can acquire and hold movable and immovable property, contract through agents, and can sue and get sued.
   
2. Under Sec. 15 a registered trade union has a right to establish a ‘general fund’. Under Sec. 16, a registered trade union has a right to establish a ‘political fund’. Subscription to this fund is not necessary for a member.
   
3. Under Secs. 17, 18, and 19 a registered trade union gets immunity in certain criminal, civil, and contractual proceedings. In India, an agreement in restraint of trade is void as per Sec. 25 of Indian Contract Act. However, such an agreement between trade union members is neither void nor voidable (Sec. 19). It is important to note that this right is available only to registered trade unions. An unregistered trade union must follow the principles of general contract law.
   
4. Any registered trade union may, with the consent of not less than two-thirds of the total number of its members and subject to the provisions of the Act, change its name. The change in the name of a registered trade union shall not affect any of its rights or obligation or render defective any legal proceeding by or against the union, and any legal proceeding which might have been continued or commenced by or against it by its former name may be continued by its new name.
   
5. Under Sec. 24, trade unions have the ‘right to amalgamate.’ Any two or more registered Trade Unions may become amalgamated together as one Trade Union with or without dissolution or division of the funds of such Trade Unions or either or any of them, 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.

The notice of such amalgamation, signed by the secretary and seven members of each of the trade unions, should be sent to the Registrar of the State where the head office of the amalgamated trade union is to be located. If the Registrar is satisfied that all the provisions of this Act have been complied with and the trade union formed thereby is entitled to registration under Sec. 6, he will register the new trade union under Sec. 8 and the amalgamation will take effect from the date of registration.

On ‘merger’ the Trade Union and its office-bearers do not lose their identity [Rattan Kumar Dey v Union of India (1991) 63 FLR 463 (Gau)]. An amalgamation shall not prejudice any right of any such unions or any right of a creditor or any of them.

• Under Sec. 28-F, the executive of a registered trade union has a right to negotiate with the employer the matters of employment or non-employment or the terms of employment or the condition and the employer shall receive and send replies to letters and grant interviews to such body regarding such matters.

Liabilities of a Registered Trade Union

A registered trade union must follow the provisions of the Trade Unions Act 1926. In particular, the following are some restrictions on a registered trade union:

1. A Trade Union cannot spend the funds on anything the office bearers want. It can spend funds only on the activities specified in Sec. 15. These include:
   • Salaries of office bearers;
   • Expenses required for administration of the trade union;
   • compensation to workers due to loss arising out of any trade dispute;
   • welfare activities of the workers;
   • benefits to workers or their dependents in case of unemployment, disability, or death;
   • publishing material for creating awareness in the workers;
   • legal expenses required for defending or bringing a suit;
   • taking insurance policies for workers.

Where the Office bearers of a trade union invested the money from general fund into shares of UTI, it was held invalid because it is a speculative investment [Mario Raposo v H.M. Bhandarkar 1994].

• A trade union cannot force members to subscribe to political fund under Sec. 16. A member who does not contribute to the said fund shall not be excluded from any benefits of the trade union, or placed in any respect either directly or indirectly under any disability or at any disadvantage as compared with other members of the union by reason of his contribution to the said fund.
• Under Sec 20, a trade union must make available all its record books of accounts and list of membership for inspection upon request of any member or his representative.
• Sec 21 allows minors more than 15 years of age to be members of a trade union. A minor enjoys all the rights of a member and executes all instruments and give all acquaintances necessary to be executed. However, such minors cannot hold office. Further, there should be no prohibition in the Rules of Trade Union on admitting any minor as its members. Normally, a person above 18 years of age is qualified to be a member of the trade union.
• Under Sec 21-A, a trade union cannot appoint a person who has been convicted of a crime involving moral turpitude and has been imprisoned for 6 months or more within last 5 years.
• As per Sec. 22, at least half of the office bearers of a trade union of workers of unorganized sector must be engaged or employed in an industry to which the trade union is connected. Also, while a union has a right to remove any office bearer, this power must be used judiciously and rules of natural justice must be followed.
• Under Sec. 28, a general statement, audited in a prescribed manner, of all income and expenses must be sent to the Registrar every year.

Dissolution of a Trade Union [Sec. 27]

• 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 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.
• 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.

Alteration in Rules of Trade Union

Section 6(g) provides that the rules of a trade union must provide the manner in which the rules shall be amended, varied or rescinded. Sec. 28(3) lays down that a copy of every alteration made in the rules of a registered trade union shall be sent to the Registrar within 15 days of the making of the alteration. Sec. 29 empowers the appropriate government to make regulations for the purpose of carrying into effect the provisions of this Act.

Section 30 makes it obligatory to publish Regulations in the Official Gazette and they will come into force after such publication. Regulation 9 of the Central Trade Union Regulations, 1938 provides that on receiving a copy of an alteration made in the rules under Sec. 28(3), the Registrar, unless he has reason to believe that the alteration has not been made in the manner provided by the rules of trade union, shall register the alteration in a register and shall notify the fact that he has done so to the Secretary of the Trade Union. The combined effect of Secs. 6(g), 28(3), 29 and 30, and, Regulation 9 is that a registered trade union can alter its rules only in the manner provided in these provisions. That means a registered trade union can alter its rules only in the manner provided in the Act [Indian Oxygen Ltd. v Their Workmen AIR 1969 SC 306].

Power to Make Regulations [Sec. 29]

Every notification made by the Central Government under Sec. 22(1), and every regulation made by it under Sec. 29(1) shall be laid, as soon as may be after it is made, before each House of Parliament [Sec. 29(3), inserted by 2001 Amendment]. Similarly, every notification made by the State Government under Sec. 22(1) and every regulation made by it under Sec. 29(1) shall be laid before the State Legislature [Sec. 29(4), inserted by 2001 Amendment].

Penalties and Procedure [Secs. 31-33]

Section 31 provides for ‘Failure to submit Returns’. In case of delay in filing an amendment to the constitution of the Trade Union, the Registrar can impose a fine under Sec. 31 instead of refusing to incorporate such amendment [Delhi Hindustani Mercantile Association v Delhi Administration 1990 LLR 234 Del].

Supplying False Information regarding Trade Unions (Sec. 32)

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, or any person who, with the like intent, gives a copy 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.

Cognizance of Offences (Sec. 33)

• No Court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try any offence under this Act.
• 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 Sec. 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.

REGISTERED v RECOGNISED TRADE UNION

The Trade Unions Act does not provide for compulsory recognition of Trade Unions. Recognition thus remains a matter of discretion with the employer. The Trade Union (Amendment) Act, 1947, even though it envisaged for compulsory recognition of Trade Union, was not carried into effect. The 1950 Trade Union Bill designed to the same purpose also lapsed.

The recognition of a Trade Union is different from its registration. A Trade Union registered under the Act is entitled to all the protections and rights contemplated by the Act even if it is not recognised by the employer [Sabhiyta Mandir Press v State of U.P. (1951) 1 LLJ 246]. A recognised Union has certain additional privileges and rights compared to an unregistered Union:

• The right to sole representation of the workers in any collective bargaining,
• To raise issues and enter into agreements with employers on general questions concerning the terms and conditions of employment,
• To discuss with employer the grievances of the workers,
• To inspect the place of work,
• To nominate its representatives to the grievance committee

The Bombay Industrial Relations Act, 1946, The M.P. and Rajasthan State Acts provide for compulsory recognition. Considering the advantage of compulsory statutory recognition, the National Commission on Labour feels it desirable to make Union recognition compulsory under a central law, in all undertaking employing 100 or more workers or where the capital invested is more than a stipulated size.

The recognition of a trade union is not regulated by any statutory provision. The trade union cannot enforce the right of recognition against the management by a writ petition. An agreement ought to have been entered been entered into between the trade union and the management for granting recognition [Workmen of Kampli Co-op. Sugar Factory Ltd. v Management of Kampli Co-op. Sugar Factory Ltd. (1995) 1 LLJ 727 (Karn)].

The recognition once granted cannot be withdrawn illegally or without complying with the rules of natural justice. In T.N.E.B. Engineers’ Sangam v Tamil Nadu Electricity Board (1996) 1 LLJ 1071 (Mad), it was held that before withdrawal of recognition the employer must give opportunity to the Union and must also state valid reasons for de-recognition. De-recognition cannot be done in an arbitrary manner. In the present case, the respondent has not given any opportunity to put forth the grievances of petitioners by conducting an inquiry which will find whether the Union has indulged in any unlawful activity

FAQ’s – Trade Union registration India

Q.1. Can the following be registered as Trade Unions under the Trade Unions Act, 1926?

The All India Civil Servants’ Association.
 The All India Textile Manufacturers’ Association/Delhi Automobile Manufacturers’ Association.
 Indian Police Service Officers’ Welfare Association.
 Delhi Union of Journalists.
 Andhra Pradesh Agricultural Labourer’s Union.
 Bombay Child Shoe Shine Workers’ Union.

Q.2. Can the following be registered as Trade Unions under the Trade Unions Act, 1926?

1. The All India Bank Employees’ Association.
2. Doordarshan News-readers’ Association.
3. A Residents’ Welfare Association.
4. Association of employees employed in a Lawyers’ firm for protecting the economic interests of its members.
5. Association of Teachers teaching in Delhi Administration-run schools formed for the purpose of securing better service conditions.
6. Delhi University Teachers’ Association/ Delhi University Law Teachers’ Association.
7. Delhi Jal Board Technical Employees Association.
8. Domestic Servants’ Association.
9. Army Widows’ Welfare Association.
10. Delhi Judicial Officers’ Association.

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