Unit 1 — Exam Guide

1. Introduction

The Trade Unions Act, 1926 is the first legislation in India that gave legal status to trade unions. It came into force on 1 June 1927. The Act provides for registration of trade unions and confers certain rights and immunities upon registered trade unions.

2. Definition of Trade Union — Section 2(h)

Section 2(h) 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
• Workmen and workmen, or
• Employers and employers
• It also includes any federation of two or more trade unions.

Key Elements of the Definition

• Nature: Can be temporary or permanent
• Purpose: Regulating employment relations (primary purpose)
• Scope: Covers workers, employers, and their combinations
• Federation: Two or more TUs can form a federation

3. Immunity from Criminal Conspiracy — Section 17

Section 17 provides that no office-bearer or member of a registered Trade Union shall be liable to punishment under Section 120-B of IPC (criminal conspiracy) for any agreement made between the members for the purpose of furthering any object of the trade union, unless the agreement is to commit an offence.

• The act done must be in furtherance of a trade dispute
• The agreement must be between members of the registered TU
• The act, if done by one person, should not be punishable as an offence
• This immunity does NOT cover violence or criminal acts

4. Immunity from Civil Suits — Section 18(1)

Section 18(1) provides that no suit or legal proceeding shall be maintainable in any civil court against any registered Trade Union or its members in respect of any act done in contemplation or furtherance of a trade dispute.

• Protects the TU and its members from civil liability
• Acts must be connected with a trade dispute
• Covers actions like calling strikes, picketing, etc.

5. Immunity of Office-Bearers — Section 18(2)

Section 18(2) provides that no office-bearer or member shall be liable in any suit for inducing any other person to break a contract of employment if such act is done in contemplation or furtherance of a trade dispute.

6. Conditions for Immunity

• The Trade Union must be registered under the Act
• The act must be done in contemplation or furtherance of a trade dispute
• The immunity does NOT protect against criminal violence or destruction of property
• If TU is unregistered, no immunity is available

7. Important Case Laws

Rohtas Industries Ltd. v. Rohtas Industries Staff Union — The Supreme Court held that the immunity under Section 18 is wide and protects trade unions from civil liability for acts done during trade disputes.

B.R. Singh v. Union of India — The right to form trade unions is a fundamental right under Article 19(1)(c), but the right to strike is not a fundamental right.

1. Introduction

Registration under the Trade Unions Act, 1926 gives a trade union legal status, making it a body corporate with perpetual succession and a common seal. The Act provides detailed procedure for both registration and cancellation.

2. Who Can Apply — Section 4

• Minimum 7 members must sign the application
• Application sent to the Registrar of Trade Unions
• Members must be employed in the trade or industry
• Must be accompanied by a copy of the rules and a statement of particulars

3. Application Requirements — Section 5

• Copy of the rules of the Trade Union
• Names, ages, addresses, and occupations of the applicants
• Name and address of the Trade Union office
• Names, ages, addresses, and occupations of the office-bearers

4. Minimum Rules — Section 6

Every registered TU must have rules providing for:

1. Name of the Trade Union
2. Objects of the Trade Union
3. Purposes for which the general fund shall be applicable
4. Conditions of membership and membership fee
5. Minimum subscription: Re. 1 (rural) / Rs. 3 (others) per month
6. Conditions for removal of office-bearers
7. Manner of auditing accounts
8. Manner of dissolution

5. Registration — Sections 7-9

• Section 7: Registrar shall register if all conditions are fulfilled
• Section 8: Registrar may refuse registration if conditions not met
• Section 9: Certificate of registration is conclusive proof of registration
• Section 9A: Minimum membership — 10% of workers or 100 (whichever is less). If membership falls below, Registrar can cancel after 6 months notice.

6. Effect of Registration

• Becomes a body corporate with perpetual succession
• Can hold and acquire property
• Can enter into contracts
• Can sue and be sued in its own name
• Enjoys immunities under S.17 and S.18

7. Cancellation — Section 10

Section 10 provides that the Registrar may cancel registration in the following cases:

1. On application by the Trade Union itself (voluntary dissolution)
2. Certificate obtained by fraud or mistake
3. Trade Union has ceased to exist
4. Trade Union has wilfully contravened any provision of the Act
5. Trade Union has violated its own rules regarding conditions of membership

8. Procedure for Cancellation

• Registrar must give 2 months prior written notice
• Show cause hearing must be provided
• TU must be given opportunity to be heard
• Cancellation must be for valid grounds only

9. Case Law

Tata Workers’ Union v. Registrar of Trade Unions — The court held that registration cannot be cancelled without giving proper notice and opportunity of hearing to the trade union.

1. Definition of Trade Union

(Same as Q1 above — Section 2(h) defines Trade Union as any combination, temporary or permanent, formed for regulating relations between workmen-employers / workmen-workmen / employers-employers. Includes federations.)

2. General Fund — Section 15

Section 15 provides that the general fund of a registered Trade Union shall be spent ONLY on the following 10 purposes:

1. Payment of salaries, allowances, and expenses to office-bearers
2. Payment of expenses for administration of the Trade Union
3. Prosecution or defence of any legal proceedings for securing rights of TU or its members
4. Conduct of trade disputes on behalf of TU or its members
5. Compensation of members for loss arising out of trade disputes
6. Allowances to members or their dependants on account of death, old age, sickness, accident, or unemployment
7. Publication of a periodical for the TU
8. Payment of fees to any federation of TUs
9. Educational, social, or religious benefits for members
10. Upkeep of offices and other assets

3. Political Fund — Section 16

Section 16 allows a registered TU to constitute a separate fund for political purposes, subject to conditions:

Purposes of Political Fund (3 purposes)

1. Payment of election expenses of a candidate for election to a legislative body
2. Holding of political meetings
3. Distribution of political literature

Rules Governing Political Fund

• Contributions must be separate from general fund contributions
• Contributions must be voluntary — no member can be compelled
• A member who does not contribute shall NOT be excluded from any benefits of the TU
• Non-contributor shall NOT be disqualified from holding any office
• Separate accounts must be maintained for political fund
• No compulsion or pressure shall be applied

4. Practical Example

If member X of a registered TU refuses to contribute to the political fund, the TU CANNOT:

• Expel X from membership
• Deny X any benefit from the general fund
• Prevent X from contesting elections for TU office
• Discriminate against X in any manner

If the TU expels X for refusing political fund contribution, such expulsion is ILLEGAL under S.16(2).

1. Introduction

The trade union movement in India has a long history shaped by colonial exploitation, industrial growth, and the freedom movement. Understanding this history is essential to appreciate the legal framework of the Trade Unions Act, 1926.

2. Early Phase (Before 1918)

• No proper trade unions existed during this period
• Workers faced severe exploitation — long hours, low wages, no safety
• Sorabji Shapurji Bengalee (1875) — raised voice for factory workers’ conditions
• N.M. Lokhande (1890) — organised the Bombay Mill Workers and presented demands to the Factory Commission
• First Factories Act enacted in 1881 (amended 1891, 1897)
• Workers had no legal right to organise

3. Formation Phase (1918–1926)

• Impact of World War I — rise in prices, stagnant wages, worker unrest
• Madras Labour Union (1918) — first organised trade union in India, founded by B.P. Wadia
• AITUC (All India Trade Union Congress) formed in 1920 — first central trade union organisation
• Lala Lajpat Rai was the first president of AITUC
• India joined the ILO (International Labour Organisation) in 1919
• Buckingham & Carnatic Mills Strike (1921) — landmark strike in Madras
• Growing influence of the freedom movement on labour movement

4. Trade Unions Act, 1926

• Passed on 25 March 1926, came into force on 1 June 1927
• First legislation to give legal status to trade unions in India
• Based on the British Trade Union Act of 1871
• Provided for registration, rights, immunities, and regulation of TUs
• Gave workers the right to organise collectively

5. Post-Independence Development

• INTUC (Indian National Trade Union Congress) — 1947, affiliated to Congress
• HMS (Hind Mazdoor Sabha) — 1948, affiliated to Socialist Party
• BMS (Bharatiya Mazdoor Sangh) — 1955, affiliated to RSS
• CITU (Centre of Indian Trade Unions) — 1970, affiliated to CPI(M)
• Multiple amendments to the TU Act to strengthen workers’ rights

6. Current Challenges

• Multiplicity of unions — too many unions in one industry
• Political interference in trade union functioning
• Inter-union rivalry weakening worker bargaining power
• Low membership and financial weakness
• Outsider leadership — non-workers leading unions
• Decline of unionisation in the informal sector