The roots of India’s trade union movement can be traced back to the year 1890, with the formation of the Bombay Millhands Association. Although pioneering in nature, this association lacked the legal status and structural foundation of a formal trade union.
The success of several worker-led strikes in the early 20th century served as a catalyst for the organized labour movement. A key figure in this progression was Dr. N.M. Joshi, the General Secretary of the All India Trade Union Congress (AITUC), who brought forward a crucial resolution before the Central Government advocating for the legal protection of trade unions.
Despite resistance from employers, the persistent demand for legal recognition culminated in the enactment of the Trade Union Act, 1926. This landmark legislation came into effect on June 1, 1927, marking a new chapter in Indian labour law history.
Evolution and Amendments to the Act
The Trade Union Act has undergone several amendments over the years to strengthen the rights and recognition of trade unions in India.
Amendment of 1929
The first significant amendment came in 1929, introducing the provision of an appeal mechanism for unions whose registration applications were denied by the Registrar. This step ensured fairness and accountability in the registration process.
Indian Trade Union (Amendment) Act, 1947
The 1947 amendment brought transformative changes, including:
- Mandatory recognition of trade unions by employers where the union truly represented the majority of workers.
- The executive body of recognized unions was granted the legal right to negotiate with employers, strengthening collective bargaining power.
These reforms gave a significant boost to trade unions, empowering them to act more effectively on behalf of workers.
Ongoing Evolution
Since 1947, the Trade Union Act has been subject to multiple amendments—each aiming to adapt to the changing landscape of labour relations in India. The evolution of this legislation continues alongside the dynamic development of trade unionism in the country.
Despite its early origins, India’s trade union movement gained legal footing only after persistent demands from labour activists like Dr. N.M. Joshi. Today, it plays a crucial role in shaping industrial democracy.
DEFINITIONS
Section 2 of the Trade Union Act, 1926 deals with various definitions. In this section appropriate government is defined as the following:
- Central Government- It is the appropriate government in case of the trade union whose object is not confined to one state.
- State Government- In all other cases, the appropriate govt. is state government.
Section 2(a) – Executive- It is the body to which the affairs of a trade union is entrusted.
Section 2(g) – Trade Dispute- The term trade dispute has been defined in the section 2(g) of the trade Union act. According to it, Trade dispute means any dispite between –
- Employers and Workmen or
- Workmen and workmen or
- Employers and employers
Such a dispute must be connected with the:-
- Employment or
- Non employment or
- The terms of employment
- The conditions of labour or any person
Case- Western Indian Automobile Association vs Industrial Tribunal (AIR 1949 FC 111)- In this case it was held that reinstatement is connected with non employment and hence within the definition of trade dispute.
Section 2(h) – Trade Union- The term trade Union is defined under Section 2(h) of the Trade Union act. According to it, 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.
This act shall not affect the following things:
- Any agreement between partners as to their business; or
- Any agreement between an employer and those employed by him as to such employment
- Any agreement in consideration of the sale of the goodwill of a business or of instruction in any profession, trade or handicraft.
Case- National Organisation of Bank Workers Federation of Trade Unions vs Union of India & Others [1992 (65) FLR 164]- In this case it was held that where a federation of trade union is not registered, it is not a trade union under this act and is not competent to raise a demand on behalf of employees which can fall in the ambit of industrial dispute.
Case- Tamil Nadu N.G.O Union vs Registrar Trade Unions (AIR 1962 Mad 234)- In this case it was held that the term trade union could only fairly characterise persons engaged in manual labour semi-skilled occupations for wages and could certainly not include civil servants of the State.
MODE OF REGISTRATION
The process of forming a trade union officially begins with its registration. Section 4 of the Trade Union Act, 1926 lays down the essential steps and legal requirements for registering a trade union in India.
Section 4(1): Minimum Requirement to Apply
To initiate the process of registration:
- At least seven or more members of the trade union must come together.
- They must subscribe their names to the rules of the trade union.
- They must comply with all the provisions of the Trade Union Act.
Once these conditions are fulfilled, they may formally apply for the registration of the trade union.
Section 4(2): When the Application Becomes Invalid
The law also includes a safeguard to ensure the genuineness of the application:
- If more than half of the original applicants (who applied for registration) withdraw their support,
- Or if they cease to be members of the union,
- And formally notify the Registrar in writing,
Then, the registration application becomes invalid.
This provision ensures that the trade union application is not made frivolously or without the genuine consensus of its members. It protects the integrity of the registration process by requiring sustained interest and support from the majority of applicants.
Building a trade union is not just about paperwork—it’s about unity, commitment, and a shared goal. Section 4 ensures that only sincere efforts lead to recognition.
APPLICATION OF REGISTRATION
Section 5 of the Trade Union act deals with the application of registration of trade Union.
Section 5(1) provides that an application for registration of trade union shall be made to the registrar shall be accompanied by the following things:
- Copy of the rules of trade Union
- Particulars of the name, occupations and addresses of the members making application
- The name of trade Union and address of its head office
- The titles, names, ages, addresses and occupation of the office bearers of trade Union.
Section 5(2) provides that when a trade union has been in existence before giving application to the registrar for its registration then, a general statement of the assets and liabilities of the trade union must also be give with the application of registration.
PROVISIONS CONTAINED IN RULE OF A TRADE UNION
Section 6 deals with the provisions contained in rule of a trade Union.
It provides that a trade union shall only be registered, where the executive is constituted in accordance with the act and the rules provide for the following matters:-
- Name of trade Union
- Object for which trade Union is established
- The purpose for which general fund of this trade union shall be applicable
- Maintenance of a list of members of trade union and adequate facilities for the inspection by the office bearers and trade union.
- 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.
- 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
- The condition in which any member is entitled to any benefit assured by the rules or any fine or forfeiture issued on the members
- Manner in which rule shall be amended.
- Manner in which the members and other office bearers of trade union shall be appointed or removed
- Safe custody of the funds of the trade Union and adequate facilities for inspection of accounts book by office bearers and its member
- Manner in which trade Union shall be dissolved.
Case- Bokajan Cement Corporation Employees vs Cement Corporation of India Ltd (AIR 2004 SC 245)- In this case it was held that an employee would not automatically cease to be a member of trade union on termination of his employment .
Case- M.T. Chandersenan vs Sukumaran (AIR 1947 SC 1789)- In this case it was held that if subscription of membership is not paid according to the conditions of trade Union, then a person cease to be a member of trade union.
Application of Registration
Section 5(1): What Should Be Included in the Application?
To register a trade union, the application must be made to the Registrar and be accompanied by the following essentials:
- 📃 A copy of the rules of the trade union.
- 👥 Names, occupations, and addresses of the members making the application.
- 🏢 Name of the trade union and the address of its head office.
- 🧾 Details of office bearers—including their titles, names, ages, addresses, and occupations.
Section 5(2): Additional Requirement for Existing Trade Unions
If the trade union has already been in existence before applying for registration, there’s one more step:
- It must submit a general statement of its assets and liabilities along with the application.
Provisions Contained in rule of Trade Union
Section 6 of the Trade Union Act, 1926 provides the following provisions contained in the rules of trade union
- 🏷️ Name of the Trade Union
- 🎯 Objectives for which the trade union is established
- 💰 Purpose of the general fund—how it will be used
- 📜 Member list maintenance and inspection rights for office bearers and members
- 🧑🏭 Admission of ordinary members actually engaged in the relevant industry
- 👤 Admission of honorary/temporary members (as per Section 22 requirements)
- 💳 Subscription payment—minimum of 25 naye paise per month per member
- ✅ Conditions for member benefits, fines, and forfeitures
- 🛠️ Procedure for amending rules
- 📥 Appointment and removal process for members and office bearers
- 🔐 Safe custody of funds and inspection of account books by members
- ⚖️ Manner of dissolution of the trade union
Strong rules make stronger unions. Section 6 ensures you’re legally ready to represent your members effectively
REGISTRATION
Section 8: Registration by Registrar
Section 8 of the Trade Union act, 1926 provides that once the registrar is satisfied that a trade union has complied with all the legal requirements under the Trade Union Act, he may register the union by entering its name in the official register.
Case: Chemosyn (P) Ltd. & Others vs Kerala Medical and Sales Representatives Association [(2003) II LLJ 1100 (Bom)]- In this case it was held that a trade union under this Act is not created by statute, hence not a statutory body.
Functions of the Registrar
The Registrar plays a vital administrative role in ensuring that trade unions are compliant and well-structured. Here are his key responsibilities:
- 📄 Examining applications for registration
- 📜 Granting the certificate of registration
- 🕵️♂️ Inquiring into disputes related to the election of office-bearers
⚖️ Case: North Eastern Railway Employees Union vs Deputy Labour Commissioner [2003 (1) AWC 104]- The Court clarified that the Registrar’s role is purely administrative—he cannot hold or supervise union elections, he can only communicate with registered office-bearers and ensure legal compliance.
Section 9: Certificate of Registration
Once the trade union is registered, the Registrar issues a certificate, which is conclusive proof that the trade union is registered under the Act.
Section 9A: Minimum Number of Members
To register a trade union, it must have:
- At least 10% or 100 workers, whichever is less, and
- A minimum of 7 members from the relevant industry
Section 10: Cancellation of Registration
The Registrar can cancel a trade union’s registration in the following situations:
- On verified application by the trade union itself
- If the certificate was obtained by fraud or mistake
- If the trade union has ceased to exist
- If the union violates the Act, even after warning
- If the union rescinds any rule required by Section 6
Notice Requirement- Before cancellation of registration, the Registrar must issue a 2-month notice.
Case: Tata Electric Companies Officers Guild vs Registrar of Trade Unions [(1994) I LLJ 125 (Bom)]- In this case it was held that cancellation requires willful contravention. Minor issues like wrong accounting dates do not justify cancellation.
Case: Mukand Iron & Steel Works Ltd. vs V.G. Deshpande [(1986) II LLJ 290 (Bom)]- In this case it was held that once registration is cancelled, the Registrar cannot review or undo that cancellation later.
Proper registration empowers trade unions to fight legally, organize freely, and protect worker rights effectively.
Registered Office
Section 12 provides that all communication and notice to a registered trade union shall be send in its registered office. Notice of any change in the address of head office shall be given within fourteen days of such change in writing.
Case- Bombay Fire Fighters Service Union, Mumbai vs Registrar Trade Union Bombay [(1988) II L.L.J. 43 (Kerala]- In this case it was held that the non delivery of show cause notice to proper address renders the cancellation of registration illegal and improper.
Incorporation of Registered Trade Union
Section 13 deals with the following features of a trade union which are:
- Trade Union shall be a corporate.
- Shall have perpetual succession.
- A common seal.
- Power to acquire movable or immovable property
- Power to do contract.
- Power to sue or be sued.
APPEAL
Section 11 deals with the provision of appeal which are:
Who Can Appeal?
Anyone aggrieved by the Registrar’s decision – whether it’s a refusal to register, or a cancellation/withdrawal of registration – can file an appeal.
Where Can You Appeal? (Section 11(1))
Depending on the location of the trade union’s head office, the appeal lies to:
High Court- If the head office is within a Presidency Town (e.g., Mumbai, Kolkata, Chennai).
Labour Court / Industrial Tribunal- If the head office falls under the jurisdiction of either of these.
Civil Court (Additional Judge or Original Jurisdiction)- In other areas, as designated by the appropriate government.
What Can the Appellate Court Do? (Section 11(2))
The court may:
Dismiss the appeal, OR
Direct the Registrar to register the trade union, OR
Set aside the cancellation or withdrawal of registration.
Powers of the Appellate Court (Section 11(3))
The appellate court has the same powers and follows the same procedures as if it were trying a civil suit under the Code of Civil Procedure, 1908. It can also decide who will bear the cost of the appeal (fully or partially).
Appeal to the High Court (Section 11(4))
If you’re still unsatisfied after the first appeal is dismissed, you have the right to further appeal to the High Court.
GENERAL FUND
General fund of the Trade union indicates the general expenditure of a trade union.
Section 15 of the Trade Union acts, provide that The general funds of a registered Trade Union shall not be spent on any other objects than the following:
- Payment of salaries, allowances and expenses to office bearers of trade union
- The payment of expenses for administration of trade union, including audit of accounts.
- The prosecution or defence of any legal proceeding in which trade union is a party, and such prosecution is undertaken for protecting rights of the trade union.
- The conduct of trade disputes on behalf of the trade union
- The compensation of members for loss arising out of trade disputes
- Allowances to members on account of death, sickness, old age, accident or unemployment
- 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
- Provision of educational, social or religious activities(including funeral or religious ceremonies)
- the upkeep of a periodical published mainly for the purpose of discussing questions affecting employers or workmen as such
- The payment in furtherance of any of the objects on which general funds of trade union may be spent to benefit the workmen, it is provided that such contribution in any final year should not be more than 1/4th of the gross total income.
- All above points are subject to any conditions of notification in official gazette by appropriate govt.
Case- Mario Raposo vs H.M. Bhandarkar and others [(1994) II L.L.J. 680 (Bom)]- In this case the office bearers of trade union purchased shares of U.T.I in their individual names out of the Union general fund. It was held that purchase of share cannot be termed as investment under Section 15 but is a speculative activity.
SEPARATE FUND
What is the “Separate Fund”?
Section 16(1) allows a registered trade union to create a separate fund, distinct from the general fund. This fund is exclusively for promoting the civic and political interests of its members.
What Can This Fund Be Used For?
Under Section 16(2), here’s how the separate fund can be utilized:
Election Expenses- Covering costs (direct or indirect) for a candidate or prospective candidate contesting elections for a legislative body under the Constitution or any local authority.
Campaign Support- Organizing meetings, printing/distributing literature, or spreading information in support of a candidate.
Sustaining Elected Members- Providing financial support to any member of a legislative body or local authority.
Voter Registration & Candidate Selection- Activities for registering electors or choosing the right candidate for elections.
Political Awareness- Hosting political events and distributing political literature or documents to engage members civically.
Special Provision for Jammu & Kashmir
Section 16(2A) states that the same provisions apply to any legislative body under the Constitution in the Union Territory of Jammu and Kashmir.
No One Can Be Forced to Contribute!
Section 16(3) provides that no member shall be compelled to contribute the separate fund and the person not paying such funds shall not be excluded from any benefits. Contribution in separate fund shall not be a condition for admission of trade union.
CRIMINAL CONSPIRACY
Section 17 of the Indian Trade Act, 1926 states that a registered trade union shall not be liable for punishment under Section 120-B of the Indian Penal Code in respect for any agreement made between the members for the purpose of furthering any object of trade union under Section 15, unless the agreement is to commit an offence.
Case- West India Steel Company Ltd. vs Azeez [(1990) II L.L.J. 133 (Kerala)]- A trade union representative protested against the delegation of a worker to another sector by blocking or stopping work inside the factory for five hours. It was decided that a worker in a factory had to obey the directives issued by his superiors and he has no right to stop his work or obstruct the work
IMMUNITY FROM CIVIL SUITS
Section 18(1): Protection Against Civil Suits
Article 18(1) provides that no suit is maintainable in any civil court against any registered trade union or any office bearer or member, in respect of any act done in contemplation or furtherance of trade dispute to which a trade union is party on the following grounds:
- Act inducing persons to break a contract of employment or
- Interference with the trade, business or employment of some other person or
- The right of some other person to dispose of his capital or of his labour as his will.
Section 18(2): Immunity from Torts Committed by Agents
Article 18(2) provides that a registered trade union shall not be liable in any suit regarding tortuous act done in contemplation or furtherance of a trade dispute by an agent if such person act without the knowledge of directions of executive.
Case- Simpson & Group Companies & Staff Union vs Amco batteries Ltd. [1991 (61) FLR 708]- In this case it was held that the physical interference of duress with free movement of executive, staff or contractors of the factory does not extends to immunity under section 18 of the Trade Union act.
Case- Ahmedabad Textile Research Association vs A.T.I.R.A Employees Union and another [(1994) II L.L.J. 912 Guj.] – In this case it was held that demonstrations and dharnas may cause inconvenience to the management. But they are weapons, as strike is, in the armoury of the labour to pressurise the management to accede to their demands. Such demonstrations and dharnas, when they do not turn unlawful, violent and tortuous, cannot be curbed by orders of Civil Court and would come within the purview of Section 18 of the Act.
RIGHT TO INSPECT BOOKS
Section 20 of the Trade Unions Act, 1926:
📘 The account books of a registered trade union and the list of its members shall be open to inspection by:
✅ Any member of the trade union
✅ Any office-bearer of the trade union
It is not necessary that the office bearer of any member of union shall personally inspect the account he can also appoint an agent for this purpose.
DISQUALIFICATION
Who Is Disqualified?
According to Section 21A(1) of the Trade Unions Act, 1926, a person is disqualified from being chosen as, or continuing as, an office-bearer of a trade union if:
Underage- The person has not attained the age of 18 years.
Convicted for Moral Turpitude:- The person has been convicted of an offence involving moral turpitude and sentenced to imprisonment, unless a period of five years has elapsed since his release.
Section 21A(2) – What If the Conviction Happened Before 1964?
If a person was convicted and imprisoned before the Indian Trade Unions (Amendment) Act, 1964 came into effect:
AMALGMATION OF TRADE UNION
Section 24 – Amalgamation (Merging) of Trade Unions
Two or more registered trade unions can come together to form one single union — this is called amalgamation. Condition of a valid merger are as follows:
At least half the members of each trade union must be eligible to vote.
At least 60% of those votes must be in favour of the amalgamation proposal.
Section 25 – Notice of Change of Name or Amalgamation
Section 25 talks about how to officially notify the Registrar when there’s a name change or amalgamation.
1. Change of Name
A notice must be sent to the Registrar.
It must be signed by the Secretary and at least 7 members of the trade union.
2. Amalgamation of Unions
A notice must be signed by the Secretary and 7 members of each trade union involved.
Sent to the Registrar of both trade unions.
Registrar May Refuse Name Change
If the new name is identical to another trade union, or deceptively similar, then the Registrar can refuse registration to avoid public confusion.
When Does the Registration Take Effect?
| Situation | Effective From |
|---|---|
| Change of Name | Date the Registrar registers the new name. |
| Amalgamation | Date the Registrar confirms compliance and registers the union. |
Section 26 – Effect of Change in Name or Amalgamation
Effect of Change in Name
A new name does not affect the union’s existing rights or obligations.
Any ongoing legal proceedings can continue in the old name as if the name was never changed.
Effect of Amalgamation
Merger does not impact the rights of the new trade union or its creditors.
All assets, liabilities, and legal statuses remain intact and unaffected.
DISSOLUTION OF TRADE UNION
Section 27(1) – How to Legally Dissolve a Trade Union
When a registered trade union decides to shut down:
A notice of dissolution must be sent to the Registrar.
This notice must be:
🖋️ Signed by the Secretary
🧑🤝🧑 Signed by at least 7 members
📬 Sent within 14 days of the decision to dissolve
Once the Registrar registers this notice, the dissolution becomes effective from the date of such registration.
Section 27(2) provides that When rules of trade union do not provide for distribution of funds after dissolution, then registrar may distribute such funds in manner as prescribed.
RETURNS
Section 28 provides following things which are sent to the registrar by the registered trade union time to time:
- A general statement of income and expenditures which is audited in prescribed manner should be sent annually to the registrar during the year ending on 31st
- A statement showing all changes of office bearers in trade union and a copy of rules of trade union
- A copy of alteration in rules of a trade union within 15 days of such alteration.
- The registrar or any officer authorized by him may at reasonable time inspect of certificate of registration, account books, registers, and other documents, relating to a Trade Union, at its registered office or any place as decided but such place should not be more than 10 miles from the registered office.
References:
- Trade Union Act, 1926 – Bare Act
- Labour and Industrial Law by S.N. Mishra
