- The trade Unions Act, 1926 provides for registration of trade unions with a view to render lawful organization of labour to enable collective bargaining. It also confers on a registered trade union certain protection and privileges.
- A Trade Union is a combination of 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.
Registration
Registration of a trade union is not compulsory but is desirable since a registered trade union enjoys certain rights and privileges under the Act.
- The application for registration should be in the prescribed form and accompanied by the prescribed fee, a copy of the rules of the union signed by at least 7 members, and a statement containing
- the names, addresses, and occupations of the members making the application,
- the name of the trade union and the addresses of its head office, and
- the titles, names, ages, addresses, and occupations of its office bearers.
- On being satisfied with all the requirements, the registrar shall register the trade union and issue a certificate of registration, which shall be conclusive evidence of its registration.
Legal Status of a Registered Trade Union
- A registered trade union is a body corporate with perpetual succession and a common seal.
- It can acquire, hold sell, or transfer any movable or immovable property and can be a party to contracts.
- It can sue and be sued in its own name
- No civil suit or other legal proceedings can be initiated against a registered trade union
- No agreement between the members of a registered trade union shall be void
Appointment of Office Bearers
- At least 50% of the office bearers of a union should be actually engaged or employed in the industry with which the trade union is concerned, and the remaining 50% or less can be outsiders such as Lawyers, politicians, social workers, etc.
- To be appointed as an office-bearer or executive of a registered trade union, a person must have attained the age of 18 years and not been convicted of any affiance involving moral turpitude and sentenced to imprisonment.
Change of Name & Registered Office
- A registered trade union may change its name with the consent of at least 2/3rds of the total numbers of its members.
- Notice of change of name in writing, signed by the secretary and 7 members of the union, should be sent to the registrar.
- the Registrar shall register the change in name if he is satisfied that the proposed name is not identical with the name of any other existing union
- The change of name shall not affect any rights and obligations of the trade union.
Change of Registered Office
Notice of change in registered office address should be given to the Registrar in writing within 14 days of such change.
Dissolution of a Trade Union
A registered trade union can be dissolved in accordance with the rules of the union. A notice of dissolution signed by any seven members and the secretary of the union should be sent to the registrar within 14 days of the dissolution. On being satisfied the registrar shall register the notice and the union shall stand dissolved from the date.
Amalgamation of Trade Unions
Any registered trade union may amalgamate with any other union(s), provided that at least 50% of the members of each such union record their votes and at least 60% of the votes so recorded is in favor of amalgamation. Notice of amalgamation signed by the secretary and at least 7 members of each amalgamating union, should be sent to the registrar.
Obligations of Registered Trade Unions
- The general funds of a registered trade union should be spent only for the objects specified such as, payment of salaries, allowances and expenses of its office bearers, its administrative and audit expenses, prosecution or defence of any legal proceeding for securing or protecting its rights, etc.
- The account books and membership register of the union should be kept open for inspection by any of its office-bearers.
- A copy of every alteration made in the rules of the union should be sent to the Registrar within 15 days of making the alteration.
- An annual statement of receipts and expenditure and assets and liabilities of the union for the year ending on the 31st December, prepared in the prescribed forms and duly audited should be sent to the Registrar within the prescribed time.
| Offence | Penalty |
| If the registered trade union/its office bearers or members fail to give any notice or send any statement as required under the Act. | Fine upto Rs. 5 plus additional fine upto Rs. 5 per week in case of continuing offence. (Maximum fine imposable Rs. 50) |
| If any person willfully makes any false entry in the annual statement of the union or its rules. | Fine upto Rs. 500. |
| If any person, with intent to deceive, gives an incorrect copy of rules of the union to any member or a prospective member. | Fine upto Rs. 200. |
