Important provisions of the trade unions act, 1926

Main Provisions of the Trade Unions Act, 1926 are given below:

1. Definition of Trade Union:

Trade Unions means any combina­tion, whether temporary or permanent, formed primarily for the purpose of:

(a) Regulating the relations between

(1) Workmen and employers; or

(2) Workmen and workmen; or

(3) Employers and employers; or

(b) For imposing restrictive conditions on the conduct of any trade of business and includes any federation of two or more unions.

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2. Registration Trade Unions:

Under the Act, registration of unions is not compulsory though it is always desirable to have a Trade Union registered.

The registration gives immunity to its officers and members against civil and criminal proceedings under certain circumstances. An un­registered trade union is not necessarily unlawful.

Before a trade union is granted registration, it is required to comply with certain formalities.

It has to sponsor at least seven members who may apply by filing an application for registration to the registrar of the Trade Unions of the State in which the head office or registered office, as the case may be, of the Trade Union is to be located.

A Trade Union is not entitled for registration unless the executive thereof is constituted in accordance with the provisions of the Act and its rules for the following matters:

(a) Name of the Trade Union

(b) A copy of the rules

(c) Names, occupations and addresses of members making applica­tion.

(d) Titles, names, ages, addresses and occupations of its office bearers.

(e) Its assets and liabilities, if the union has existed for more than a year before the date of application.

3. Cancellation of Registration:

The Registrar of Trade Unions is authorised to withdraw or cancel the registration under the following circum­stances:

(a) On the application of the Trade Union to be verified in the pre­scribed manner; or

(b) If the registrar is satisfied that the certificate of registration has been obtained by fraud or mistake or that the Trade Union has ceased to exist or has willfully and after notice from the Registrar contra vended any provision of the Act or allowed any rule to continue in force which is inconsistent with any provision of the Act or the rule as the case may be.

Two months’ previous notice in writing, specifying the grounds for cancellation, is necessary to be given by the Registrar before cancelling or withdrawing the certificate.

4. Procedure for Change in Name:

Any registered Trade Union may with the consent of not less than two-third of the total number of its members changes the name.

5. Dissolution of Trade Union:

When a registered Trade Union is dissolved, a notice signed by the secretary, and seven members of the union is required to be sent to the Registrar within 14 days of the dissolution.

6. Membership:

The right of membership of a trade union is avail­able to a minor who is not below 15 years of age but the membership of the executive is not available to a person (1) if he has not attained the age of 18 years and (2) if he has been convicted for by a court in India of any offence involving moral turpitude and sentenced to imprisonment, unless a period or 5 years has elapsed since his release.

7. General and Political Funds:

The trade union must have a gen­eral fund. It may or may not have political fund.

Contributions to the political fund, if made, must be made separately and spent to promote the civil and political interests of its members.

These are separate funds and each must be spent for the purposes listed in the Act.

Contribution to political fund is not compulsory.

8. Legal Protections to Trade Unions against Civil and Criminal actions. As a legal person the Trade Union is protected:

(a) Against being charged as a criminal conspiracy,

(b) In certain cases against suits in civil courts.

Section 18, sub-clause (1) states: “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 contemplation 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 an 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 his labour as he wills.”

9. Obligation:

A registered union must send to the Registrar of Trade Unions an audited statement of its income and expenses for the year ending December 31 and the yearly assets and liabilities on that data.