How to register a Trade Union in India

the Trade Unions Act, 1926 was enacted on March 25, 1926, in order to register and safeguard these worker groups. Consequently, the registration of the trade unions raised the status of the unions in the eyes of employers and the general public. Before we proceed with the registration of trade unions it is important to understand the history of the trade union movement in India.India saw the growth of industrialisation and capitalism during the initial years of the 20th Century. With the number of workers increasing with each passing day, it became important to safeguard and protect the rights of these workers and to formalize the groups thus formed. Therefore, for the registration and protection of these groups of workers, the Indian Trade Unions Act, 1926 (now known as Trade Unions Act, 1926) was enacted on March 25, 1926.

How to register a Trade Union in India

Definition of “Trade Union” as per Legal Acts

The Trade Unions Act, 1926 defines a trade union as 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. A group of seven or more members of a trade union may apply for registration of a trade union with the concerned Registrar of trade unions. A registered trade union is a body corporate by the name under which it is registered, having perpetual succession and a common seal with the power to contract and to hold movable and immovable property. A trade union may sue or be sued in its name.

The Industrial Disputes Act, 1947 defines “Trade Union” as a trade union registered under the Trade Unions Act, 1926. Therefore, any Trade Union, which is not registered under the Trade Unions Act, cannot be treated as a Trade Union under the Industrial Disputes Act, 1947. An unregistered trade union has no manner of right whatsoever and 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, 1926.

Is it necessary to register a Trade Union?

Though an unregistered trade union may function as a normal trade union defined under the Trade Unions Act, an unregistered trade union neither has the power to raise an industrial dispute, nor the power to represent an employee or be part of any proceedings under the Industrial Disputes Act. An unregistered trade union is also incapable of entering into a contract with the employer on behalf of the members or employees, and if it does so, the enforcement of the same by such an association or union in its name may not be possible.  

Mode of Registration

According to section 4 of the Trade Union Act, any seven or more members of a Trade Union in accordance with the provisions of the Act may make an application apply for registration of the trade union. There are two conditions subsequent to the same, firstly no trade union of workmen shall be registered unless at least 10% or 100 of the workmen, whichever is less engaged in the employment of the establishment are its members on the date of making of its application and secondly no trade union shall be registered unless on the date of making of application, minimum seven of its members who are workmen are employed in the establishment or industry.

Also, such application shall not be deemed to be invalid merely on the ground that at any time after the date of the application, but before the registration of the trade union some of the members but not exceeding half of the total number of persons who made the application has ceased to be members.

Application for registration

According to section 5 of the Act, every application for the registration of the trade union shall be made to the Registrar and shall be accompanied by a copy of the rules of the Trade Union and a statement of the following particulars namely-

  • The names, occupations and addresses of the members making the application;
  • The name of the trade union and the address of its head office, and
  • The titles, names, ages, addresses and occupations of the office- bearers of the trade union.
  • Where a trade union has been into existence for more than a year, then a copy of the assets and liabilities shall also be submitted along with the application for registration.

Provisions to be contained in the rules of a Trade Union

According to section 6 of the Act, a Trade Union shall not be entitled to registration under the Act unless the executive committee has been established in accordance with the provisions of the Act and the rules provide for the following-

  • The name of the trade union;
  • The whole of the objects 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;
  • The maintenance of a list of the members of the 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;
  • The conditions under which any member shall be entitled to any benefit assured by the rules and under which any fine or forfeiture may be imposed on the members;
  • The manner in which the rules shall be amended, varied or rescinded;
  • The manner in which the members of the executive and the other office bearers of the Trade Union shall be elected and removed;
  • The safe custody of the funds of the trade union, an 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, and;
  • The manner in which the trade union may be dissolved.

Power to call for further particulars and to require alteration of name

According to section 7 of the Act, the registrar may call for further information for the purpose of satisfying himself that whether all the particulars are in accordance with section 5 and 6 of the Act.

In case the trade union applying for registration bears a name identical to that of an existing trade union and the registrar feels that the name so resembles that of the other that there are fairs chances of the persons being misled then the registrar shall ask the trade union applying to change the name and shall refuse to register the same until such alteration has been made

Registration

According to section 8 of the Act, if the registrar thinks that the trade union has complied with all the provisions of the Act, it shall register the Trade Union by entering in a register all the particulars in accordance with the provisions of the Act.

Certificate of registration

According to section 9 of the Act, the registrar shall issue a certificate of registration to the trade union after registration under section 8 which shall be conclusive proof that a trade union has been duly registered.

Incorporation of registered trade union

According to section 13 of the Act, every registered trade union shall be a body corporate having a common seal and perpetual succession with power to acquire and hold movable and immovable property and shall by the said name sue and be sued.

FAQs

What is a trade union?

A trade union is an organization of workers formed to protect and promote their interests, including better wages, working conditions, and other employment-related matters.

Who can register a trade union?

Any seven or more members of a trade union who are eligible to be members can apply for the registration of a trade union.

Why should a trade union be registered?

Registration provides legal recognition and certain privileges to the trade union. It enables the union to function more effectively, participate in collective bargaining, and ensures its members are protected under the Trade Unions Act, 1926.

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