labour law unit 1 ppt

1. Labour Law I
Neha Sharma
Assistant Professor
DME Law School

2. Syllabus
Unit-I: Trade Unions and Collective Bargaining (Lectures-10)
a. Trade Unionism in India
b. Definition of Trade Union and Trade Dispute
c. Registration of Trade Unions
i) Legal Status of Registered Trade Union
ii) Mode of Registration
iii) Powers and Duties of Registrar
iv) Cancellation and Dissolution of Trade Union
v) Procedure for Change of Name
vi) Amalgamation and Dissolution of Trade Union
d. Disqualifications of Office-bearers, Right and Duties of Office-bearers and Members
e. General and Political Funds of Trade Union
f. Civil and Criminal Immunities of Registered Trade Unions
g. Recognition of Trade Union
h. Collective Bargaining

3. Syllabus
Unit-II: Standing Orders (Lectures-10)
a. Concept and Nature of Standing Orders
b. Scope and Coverage of the Industrial Employment (Standing Orders) Act, 1946
c. Certification Process
i) Procedure for Certification
ii) Appeals against Certification
iii) Condition for Certification
iv) Date of Operation of Standing Orders
v) Building Nature and Effect of Certified Standing Orders
vi) Posting of Standing Orders
d. Modification and Temporary Application of Model Standing Orders
e. Interpretation and Enforcement of Standing Orders f. Penalties and Procedure

4. Syllabus
Unit-III: Resolution of Industrial Dispute (Lectures-10)
a. Industrial Dispute and Individual Dispute
b. Arena of Interaction and Participants: Industry, Workman and Employer
c. Settlement of Industrial Dispute
i) Works Committee
ii) Conciliation Machinery
iii) Court of Enquiry
iv) Voluntary Arbitration
v) Adjudication: Labour Court, Tribunal and National Tribunal
d. Powers of the Appropriate Government under the Industrial Disputes Act, 1947
e. Unfair Labour Practice

5. Syllabus
Unit-IV: Instruments of Economic Coercion (Lectures-10)
a. Concept of strike
i. Gherao
ii. Bandh and Lock-out
iii. Types of Strike
iv. Rights to Strike and Lock-out
v. General Prohibition of strikes and lock-outs
vi. Prohibition of Strikes and Lock-outs in Public Utility Services
vii. Illegal Strikes and Lock-outs
viii. Justification of Strikes and Lock-outs
ix. Penalties for Illegal strikes and Lock-outs
x. Wages for Strikes and Lock-outs
b. Lay-off i. Retrenchment
ii. Transfer and Closure: Definition of Lay-off and Retrenchment Compensation
iii. Compensation to Workmen in Case of Transfer of Undertaking Closure
iv. Closure: Prevention and Regulation v. Conditions: Precedent for Retrenchment
vi. Special Provisions Relating to Lay-off, Retrenchment and Closure in Certain Establishments
vii. Procedure for Retrenchment and Re-employment of Retrenched Workmen and Penalty
c. Disciplinary Action and Domestic Enquiry
d. Management‟s Prerogative during the Pendency of Proceedings
e. Notice of Change

6. New Labour Code 2020
• The Code on Wages, 2019;
• The Industrial Relations Code, 2020;
• The Occupational Safety, Health and Working
Conditions Code, 2020; and
• The Code on Social Security, 2020

7. Existing Legislation New Legislation
Industrial Employment Standing Order
Act, 1946
Industrial Relations code 2020
Industrial Disputes Act, 1947
Trade Unions Act, 1926

8. INTRODUCTION
The Trade Union Act,1926 was brought into operation
from 1st June,1927 by notification in the official gazette
by the Central Government.
The Act was amended in 1947, 1960 and 1962.
The Trade Unions in India are governed by the Trade
union Act,1926.
This Act was enacted to accord protection to the Union
Leaders for the acts done by them in connection with the
legal trade union activities.

9. INTRODUCTION
The object of Act is to provide the procedure for
registration of a Trade Union.
The object of the Act is to make provisions for the
registration of Trade Unions formed by the workers to
protect their legitimate rights while fighting with
employers.
The Act was enacted with the object of providing for the
registration of trade unions and verification of the
membership of trade unions registered so that they may
acquire a legal and corporate status.

10. Meaning and Definition of Trade
Union
• A trade union is an association of workers formed
with the object of improving the conditions of
workers.
• It is formed for protecting the interests of
workers.
• Workers have little bargaining capacity when they
are unorganized.
• In fact, trade union movement began against the
exploitation of workers by certain managements
under the capitalist system.

11. What are labour unions or trade
unions?
• A trade union can be defined as an organized
association of workers in a trade or profession,
formed to further their rights and interests. In
India, Trade Unions in India are registered
under the Trade Union Act (1926).
• Trade unions are interested in the economic
and social welfare of the workers. Labor
unions may also have political interests in the
larger society.

12. Objectives of Trade Union
(1) To improve the economic lot of workers by securing them better
wages.
(2) To secure for workers better working conditions.
(3) To secure bonus for the workers from the profits of the
enterprise/organization.
(4) To ensure stable employment for workers and resist the schemes of
management which reduce employment opportunities.
(5) To provide legal assistance to workers in connection with disputes
regarding work and payment of wages.
(6) To protect the jobs of labour against retrenchment and layoff etc.

13. Objectives of Trade Union
(7) To ensure that workers get as per rules provident fund, pension and other benefits.
(8) To secure for the workers better safety and health welfare schemes.
(9) To secure workers participation in management.
(10) To inculcate discipline, self-respect and dignity among workers.
(11) To ensure opportunities for promotion and training.
(12) To secure organizational efficiency and high productivity.
(13) To generate a committed industrial work force for improving productivity of the
system.

14. Functions of Trade Unions
(1) Collective bargaining with the management for securing better work
environment for the workers/ employees.
(2) Providing security to the workers and keeping check over the hiring and
firing of workers.
(3) Helping the management in redressal of grievances of workers at
appropriate level.
(4) If any dispute/matter remains unsettled referring the matter for
arbitration.
(5) To negotiate with management certain matters like hours of work, fringe
benefits, wages and medical facilities and other welfare schemes.
(6) To develop cooperation with employers.
(7) To arouse public opinion in favour of labour/workers.

15. Benefits of Trade Union
1. A worker feels very weak when he is alone. Union provides him an opportunity to
achieve his objectives with the support of his fellow colleagues.
2. Union protects the economic interest of the workers and ensures a reasonable
wage rates and wage plans for them.
3. Union helps the workers in getting certain amenities for them in addition to higher
wages.
4. Union also provides in certain cases cash assistance at the time of sickness or some
other emergencies.
5. Union organize negotiation between workers and management and are instruments
for settlement of disputes.
6. Trade union is also beneficial to employer as it organizes the workers under one
banner and encourages them follow to peaceful means for getting their demands
accepted.
7. Trade union imparts self-confidence to the workers and they feel that they are an
important part of the organization.
8. It provides for promotion and training and also helps the workers to go to higher
positions.
9. It ensures stable employment for the workers and opposes the motive of
management to replace the workers by automatic machines.
10. Workers get an opportunity to take part in the management and oppose any
decision which adversely effects them.

16. Features of the Act
The important features of the Trade Unions Act are listed below:
1. It provides for the registration of trade unions with the Registrar of
the Trade Unions. It empowers the Registrar to call for further
particulars and to require alteration of names and to issue or
cancel the certificate of registration.
2. It provides that every registered trade union shall be a body
corporate and shall have perpetual succession and a common seal
3.It lays down
(i) the right and liabilities of registered trade unions,
(ii) objects on which general funds of trade unions may be spent.
(iii) constitution of a separate fund for political purposes, etc.

17. Features of the Act
4. It provides to the registered trade unions or any
of its office-bearers or members, immunity from
civil suits in certain cases
5. It provides that certain Acts shall not apply to
registered trade unions. These Acts are as
follows:
i. The Societies Registration Act, 1860
ii. The Cooperative Societies Act, 1912
iii. The Companies Act, 1956.

18. Definitions
Executive [Sec. 2(a)]:
“Executive” means the body, by whatever names called to
which the management of the affairs of a trade union
is entrusted.
Office Bearer [Sec. 2(b)]:
“Office Bearer”, in the case of a trade union, includes any
member of executive thereof, but does not include an
auditor.
Registered Office [Sec. 2(d)]:
“Registered Office” means that office of a trade union
which is registered under this act as the head office
thereof.
Registered Trade Union [Sec. 2(e)]:
“Registered Trade Union” means a trade union registered
under this act.

19. Definitions
Registrar [Sec. 2(f)]:
“Registrar” means:
1. A registrar of trade unions appointed by the
appropriate government under Section 3, and
includes, and includes any additional or deputy
registrar of trade unions, and
2. In relation to any trade union, the registrar
appointed for the state in which the head or
registered office, as the case may be, of the trade
union is situated.

20. Definitions
Trade Dispute [Sec. 2(g)]
“Trade disputes” means any dispute between
• employers and workman
• workmen and workmen
• employers and employers
which is connected with employment or non-
employment, or the terms of employment, or the
conditions of labor, of any person, and
“workmen” means all persons employed in trade or
industry whether or not in the employment of the
employer with whom the trade dispute arises.

21. Definition of Trade Union Sec 2(h)
• "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.

22. Case laws
• Tamil Nadu NGO Union vs Registrar, Trade Unions,
AIR 1962, Madras HC - Tamil Nadu NGO Union, which
was an association of sub magistrates of the judiciary,
tahsildars, etc., was not a trade union because these
people were engaged in sovereign and legal functions
of the State which were its inalienable functions.
• GTRTCS and Officer's Association, Bangalore and
others vs Asst. Labor Commissioner and anothers AIR
2002, Kar. HC - the definition of workmen for the
purpose of Trade Unions is a lot wider than in other
acts and that the emphasis is on the purpose of the
association rather than the type of workers and so it is
a valid Trade Union.

23. Case Laws
• National Organization of Bank Worker
Federation of Trade Union V. Union of India
1993
• Registrar Trade Union v. M Swamy

24. THE INDUSTRIAL RELATIONS CODE, 2020
The Code introduces provisions for simplifying compliance burdens and promoting
ease of doing business in an establishment. The code seeks to simplify labour laws
by amalgamating various enactments such as:
• The Industrial Disputes Act, 1947
• The Trade Unions Act, 1926; and
• The Industrial Employment (Standing Orders) Act, 1946.
• Highlights:
• The Code has introduced a 'sole negotiating union' in establishments where there
are more than one trade union. Such sole negotiating union is required to have
51% or more workers as members per Section 14 of the Code. Only sole
negotiating union shall be permitted to negotiate terms with the employer.
• The code provides provisions for workers to secure their employment after being
laid off. A fund shall be initiated consisting contribution from the employer and the
appropriate government.
• Mechanism for resolution of industrial disputes shall be constituted by the central
government comprising of a national industrial tribunal and one or more industrial
tribunal.
• As per the provisions of the Code, no person shall go on strikes and lock-outs in
breach of contract without giving prior notice of 60 days before going on strike or
before 14 days of submission of notice or during pendency of conciliation or
tribunal proceedings including within 7 days of conclusion of proceeding.

25. Earlier Provisions New Provisions
1. No definitions were given for:
•Fixed term employment
•Employee
The definition of workmen was provided in The
Industrial Dispute Act, 1947.
Definitions of both, employee and fixed term
employment were introduced.
The term 'workmen' got replaced and renamed as
'worker' in the Industrial Relations Code, 2020.
Definition of the term 'strike' is now denoted as
mass casual leave by more than 50% of workers on
a given day.
2. A workman is not required to bring grievances to
the grievance redressal committee and can directly
move to conciliation officer under Section 9C of the
Industrial Dispute Act, 1947
It is now mandatory under the Industrial Relations
Code, 2020 to approach the grievance redressal
committee.
3. Lack of time limitation provided for completion of
a disciplinary proceeding against a particular worker.
It is introduced that an inquiry along with its
investigation needs to be completed within a time
period of 90 days. The time limitation starts from
the date of worker's suspension.
4. The standing orders were only applicable to
threshold above 100 or more workmen as per the
Industrial Establishment Standing Order Act, 1946.
The threshold of standing order has now been
increased and shall be applicable to 300 workers.

26. Registration of Trade Unions
(S. 3-14)

27. Appointment
of Registrars.
Mode of
registration
Application
for
registration
Provisions to
be contained
in the rules
of a Trade
Union
Power to call
for further
particulars
and to
require
alterations of
names
Registration
Certificate of
registration

28. Appointment of registrars(Sec. 3)
-Appointed by “appropriate Government”
- appropriate Government can also appoint as many
additional and Deputy Registrars of trade unions as it
thinks fit for the purpose of exercising and discharging,
under the superintendence and direction of the
Registrar, such powers and functions of the Registrar
under this Act as it may, by order, specify and define
the local limits within which any such Additional or
Deputy Registrar shall exercise and discharge the
powers and functions so specified.

29. Mode of registration
• Section 4 provides that any seven or more members of a
Trade Union may by subscribing their names to the rules of
the Trade Union and by otherwise complying with the
provisions of this Act with respect to registration, apply for
registration of the Trade Union .
• However, no Trade Union of workmen shall be registered
unless at least ten per cent. or one hundred of the
workmen, whichever is less, engaged or employed in the
establishment or industry with which it is connected are
the members of such Trade Union on the date of making of
application for registration.

30. Application for registration
Section 5 stipulates that every application for registration of a Trade Union
shall be made to the Registrar and shall be accompanied by a copy of the
rules of the Trade Union and a namely:
– the names, occupations and address of the members making application;
in the case of a Trade Union of workmen, the names, occupations and
addresses of the place of work of the members of the Trade Union
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 in existence for more than one year before
the making of an application for its registration, there shall deliver to the
Registrar, together with the application, a general statement of the assets
and liabilities of the Trade Union prepared in such form and containing
such particulars as may be prescribed

31. Provisions contained in the rules of a Trade Union
A Trade Union shall not be entitled to registration under the Act, unless the
executive is constituted in accordance with the provisions of the Act, and
the rules thereof provide for the following matters, namely:—
– 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, all of which purposes shall be purposes to which such
funds are lawfully applicable under this Act;
– the maintenance of a list of the members of the Trade Union and
adequate facilities for the inspection thereof by the office-bearers and
members of 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

32. Provisions contained in the rules of a Trade Union
the payment of a minimum subscription by members of the Trade Union
– 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 duration of period being not more than three years, for which the members of the
executive and other office-bearers of the Trade Union shall be elected;
– 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 ebearers and members of the Trade
Union; and
– the manner in which the Trade Union may be dissolved

33. Power to call for further particulars
and to require alteration of name
Section 7
(1) The Registrar may call for further information for the purpose of
satisfying himself that any application complies with the provisions
of section 5, or that the Trade Union is entitled to registration under
section 6, and may refuse to register the Trade Union until such
information is supplied.
(2) If the name under which a Trade Union is proposed to be registered
is identical with that by which any other existing Trade Union has
been registered or, in the opinion of the Registrar, so nearly
resembles such name as to be likely to deceive the public or the
members of either Trade Union, the Registrar shall require the
persons applying for registration to alter the name of the Trade
Union stated in the application, and shall refuse to register the
Union until such alteration has been made.

34. Registration
Section 8-The Registrar, on being satisfied that the Trade
Union has complied with all the requirements of this
Act in regard to registration, shall register the Trade
Union by entering in a register, to be maintained in
such form as may be prescribed, the particulars
relating to the Trade Union contained in the statement
accompanying the application for registration.
Section 9 - Certificate of registration.- The Registrar, on
registering a Trade Union under section 8, shall issue a
certificate of registration in the prescribed form which
shall be conclusive evidence that the Trade Union has
been duly registered under this Act.

35. Case laws
• Keshoram Royon workers union v. Registrar
Trade Union 1968 SC
• IFFCO Phulpur, Karamchari Sangh v. Registrar
Trade Union 1992 SC
• Chemosyn (P) Ltd & others v. Kerela Medical and
Sales Representatives Association 1988 LLJ
Hindustan Copper Mazdoor Sangh v Chief Labour
Commissioner (1968): Right to form Trade Unions
is a fundamentl right

36. Cancellation of registration
• S. 10 - when a certificate of registration of a Trade Union may be
withdrawn or cancelled by the Registrar
• When the
• 1. Registration certificate is obtained by fraud or mistake
2. Trade Union ceases to exist
3. Trade Union has willfully and after notice from the Registrar
contravened any provision of the TU Act
4. Trade Union has rescinded any rule providing for any matter provision
required by section 6
5. Trade Union does not have the requisite number of members as per S.
9A (10% or 100 workmen, subject to minimum 7)
6. Application filed by members of TU
The registrar shall give minimum two months' notice in writing specifying
the ground on which registration is proposed to be withdrawn or cancelled

37. Appeal
Section 11
(1) Any person aggrieved by any refusal of the Registrar to register a
Trade Union or by the withdrawal or cancellation of a certificate of
registration may, within such period as may be prescribed, appeal,
(a) where the head office of the Trade Union is situated within the
limits of a Presidency-town, to the High Court, or
(b) where the head office is situated in any other area, to such Court,
not inferior to the Court of an additional or assistant Judge of a
principal Civil Court of original jurisdiction, as the appropriate
Government may appoint in this behalf for that area.
(2) The appellate Court may dismiss the appeal, or pass an order
directing the Registrar to register the Union and to issue a
certificate of registration under the provisions of section 9 or
setting aside the order for withdrawal or cancellation of the
certificate, as the case may be, and the Registrar shall comply with
such order.

38. Appeal
(3) For the purpose of an appeal under sub-section (1) an appellate
Court shall, so far as may be, follow the same procedure and have
the same powers as it follows and has when trying a suit under
the Code of Civil Procedure, 1908 (5 of 1908), and may direct by
whom the whole or any part of the costs of the appeal shall be
paid, and such costs shall be recovered as if they had been awarded
in a suit under the said Code.
(4) In the event of the dismissal of an appeal by any Court appointed
under clause (b) of sub-section (1), the person aggrieved shall have
a right of appeal to the High Court, and the High Court shall, for
the purpose of such appeal, have all the powers of an appellate
Court under sub-sections (2) and (3), and the provisions of those
sub-sections shall apply accordingly.

39. Case law
• Registrar of Trade Union W.B Mihir Kr Guha
AIR 1963 Cal 56

40. Powers of the Registrar
• Power to ask for more information: S 7 of the Act empower the Registrar
to call for further information for the purpose of satisfying himself that the
application complies with the provisions of section 5. Registrar may
withhold registration until these requests have been complied with.
• Power to request change of name: If the name under which a Trade Union
is proposed to be registered is identical to any other existing Trade Union,
the Registrar shall require to alter the name of the Trade Union. Registrar
may withhold registration until these requests have been complied.
• Power to register the Trade Union: If the Registrar is satisfied that the
Trade Union has complied with all the requirements of this Act he/she
shall register the Trade Union (S 8), by:
• entering the particulars of the Trade Union in a register maintained by him
• Issuing a certificate of registration in the prescribed form
• Power to approve application for change of name of Trade Union /
amalgamation of two or more trade unions.
• Power to divide the funds among the members of Trade Union on its
dissolution, if there is no provision for the same in Trade Union rules (S
27)
• Power to cancel registration of trade union

41. Registered office
Section 12- All communications and notices to a
registered Trade Union may be addressed to
its registered office. Notice of any change in
the address of the head office shall be given
within fourteen days of such change to the
Registrar in writing, and the changed address
shall be recorded in the register referred to in
section 8.

42. Registration
The registration of a trade union is not necessary.
However, upon registration, a trade union gets several
benefits including some immunities that are not
available to an unregistered Trade Union.
Section 13 specifies that upon registration, a trade
union gets a legal entity status, due to which-
• it has perpetual succession and a common seal.
• can acquire and hold movable as well as immovable
properties.
• can contract through agents.
• can sue and can be sued.

43. Legal Status
Section 13. Incorporation of registered Trade Unions.-
All registered trade union shall have
• Perpetual succession
• power to acquire and hold both movable and immovable property
• power to enter into contracts
• power to sue and liability to be sued by the name of the trade union
• A registered trade union requires at least 10% or 100 workmen, whichever
is less (and subject to minimum of 7 workers) at all times (S 9A)
• Any registered Trade Union may, with the consent of not less than two-
thirds of the total number of its members change its name (S 23)
• A trade union has office bearers. As per S21A, any officers stand
disqualified if he:
• is less than 18 years of age or has been convicted by any court in India for
moral turpitude and sentenced to imprisonment, unless a period of five
years has elapsed since his release.

44. Powers / Rights of Trade Union
1. A registered Trade Union is a body corporate, with
• power to acquire and hold both movable and immovable
property
• power to enter into contracts
• power to sue by the name of the trade union
2. Power to have separate fund for political purposes
A registered trade union can maintain a separate political
fund
3.Immunity from civil and criminal cases
4 Power to initiate industrial disputes as per Industrial
Disputes Act
5 Power to engage in Collective Bargaining with employers

45. Liabilities of Trade Union
• A registered trade union has the following liabilities, as per
the Trade Unions Act
• Maintain a registered office, where all communications and
notices will be send (S 12)
• Give to registrar notice of any change in the address of the
head office, within 14 days of such change (S 12)
• Maintain a common seal
• Spend funds according to purposes listed in Sn16
• At least 2/3 or five office bearers (whichever is less) to be
persons actually engaged in the establishment or industry
connected with the trade union (S 22(2)).
• For unorganized sector, the minimum proportion of officer
bearers to be connected with the industry is 50%.

46. Change of Name Amalgamation and
Dissolution of Trade Union
Trade Union may –
• Change its name (S.23)
• Two or more registered trade union may
amalgamate to become one registered trade
union (S.24)
• Registered trade union may apply for
dissolution (S. 27)

47. Procedure to change name of the trade Union
• Consent
• Compliance with Provision Section 25

48. Amalgamation of Trade Unions
As per S 24 to 26 of Trade Union Act, any two or more registered Trade Unions may become
amalgamated (merged) as one Trade Union with or without dissolution or division of the
funds, provided
• the votes of at least one-half of the members of each or every such trade Union entitled to
vote are recorded, and
• at least 60% of the votes so recorded are in favour of the proposal.
Procedure for amalgamation (S 25)
• Approval by voting in both trade unions
• Notice in writing to be served by Secretary
• minimum 7 members of each trade union involved in the amalgamation, to change of the
name after the amalgamation.
• The notice is to be served to Registrar of all states where the headquarters of the trade
unions being merged are located.
• The Registrar, on being satisfied with the conditions, registers the amalgamated trade union
by posting an entry in the Register and
• Registrar Issue certificate to that effect.
• The Amalgamation Come into force with effect from the date of Registration.
• Change of name of a registered trade union does not affect the rights and obligations of the
Trade Union or render defective any legal proceeding by or against the Trade Union.
• Similarly, Amalgamation of registered trade unions shall not prejudice any right of the Trade
Unions or any right of Creditor.

49. Notice of change of name or amalgamation
• Section 25.
(1) Notice in writing of every change of name and of every amalgamation, signed, in the case of a change of
name, by the Secretary and by seven members of the Trade Union changing its name, and, in the case of
an amalgamation, by the Secretary and by seven members of each and every Trade Union which is a party
thereto, shall be sent to the Registrar, and where the head office of the amalgamated Trade Union is
situated in a different State, to the Registrar of such State.
(2) If the proposed name is identical with that by which any other existing Trade Union has been registered or,
in the opinion of the Registrar, so nearly resembles such name as to be likely to deceive the public or the
members of either Trade Union, the Registrar shall refuse to register the change of name.
(3) Save as provided in sub-section (2), the Registrar shall, if he is satisfied that the provisions of this Act in
respect of change of name have been complied with, register the change of name in the register referred
to in section 8, and the change of name shall have effect from the date of such registration.
(4) The Registrar of the State in which the head office of the amalgamated Trade Union is situated shall, if he is
satisfied that the provisions of this Act in respect of amalgamation have been complied with and that the
Trade Union formed thereby is entitled to registration under section 6, register the Trade Union in the
manner provided in section 8, and the amalgamation shall have effect from the date of such registration.

50. Effects of change of name and of amalgamation
Section 26.
(1) The change in the name of a registered Trade Union
shall not affect any rights or obligations of the Trade
Union or render defective any legal proceeding by or
against the Trade Union, and any legal proceeding
which might have been continued or commenced by
or against it by its former name may be continued or
commenced by or against it by its new name.
(2) An amalgamation of two or more registered Trade
Unions shall not prejudice any right of any of such
Trade Unions or any right of a creditor of any of them.

51. Dissolution of Trade Unions
• When a registered Trade Union is dissolved, notice of the dissolution signed by seven
members and by the Secretary of the Trade Union shall be send to registrar within
fourteen days of the dissolution
• On dissolution, the funds of the trade union may be divided among the members, if
there is no provision for the same in Trade Union rules, the registrar may take steps to
do so (S 27)
• Returns and Fines
• Trade Unions are required to submit to registrar the following returns (S 28)
• Annual return to the Registrar containing
– a general statement of accounts and statement of assets and liabilities as on December 31
(audited)
– a statement showing all changes of office-bearers made by the Trade Union during the year
• A copy of every alteration made in the rules of a registered Trade Union (within fifteen
days of the making of the alteration).
• Fines and Penalties
• Supplying false information regarding Trade Unions: fine which may extend to two
hundred rupees. (S 32)
• Failure to submit returns or any other mandatory document – Rs 500/- and, in the case
of continuing default, additional fine which may extend to five rupees for each week
(S 31)

52. RIGHTS AND LIABILITIES OF REGISTERED TRADE
UNIONS
• A registered Trade Union has the right to
maintain
(a) a general fund, and
(b) a separate fund for political purposes
• But the Unions are bound to utilize the funds
only for the purposes specified in the Act.

53. Objects on which general funds may be spent
(Sec.15)
The general funds of a registered Trade Union shall not be spent on any other
objects than the following.-namely:–
• Payment of salaries, allowances and expenses to office-bearers of the Trade
Union
• Payment of expenses for the administration of the Trade Union, including an
audit of the accounts of the general funds of the Trade Union;
• Payment of charges arising out prosecution or defence of any legal
proceeding of the Trade Union or any member thereof when such
prosecution or defence is for the purpose of securing or protecting, any rights
of the Trade Union as such or any rights arising out of the relations of any
member with his employer or with a person whom the member employ.
• Conduct of trade disputes on behalf of the Trade Union or any member
• Compensation of members for loss arising out of trade disputes
• Allowances to members or their dependants on account of death, old age,
sickness, accidents or unemployment.

54. Objects on which general funds may be spent (Sec.15)
• Issuance of policies of assurance on the lives of members, or policies
insuring members against sickness, accident or unemployment
• Provision of education, social or religious benefits for members (including
the payment of the expenses of funeral or religious ceremonies for
deceased members) or for the dependants of members
• Providing for publication of periodicals for the use of which is intended
for the member’s benefit.
• Any other object that may be notified by the appropriate Government in
the Official Gazette.
• If funds are spent for any purposes other than the above, such
expenditure is treated as unlawful and the Trade Union can be restrained
by the Court for applying its funds in any other purposes.

55. Construction of separate fund for political purposes
Section. 16
• Apart from the primary objects, a Trade Union may have certain other
political objects. As per Section 16 a registered union may constitute a
separate fund in addition to the general fund and the payment of such a
fund shall be utilized for serving the civic and political interest of its
members.
• Payment of any expenses incurred, either directly or indirectly, by a
candidate or prospective candidate for election as a member of any
legislative body constituted under the Constitution or of any local authority
• Holding of any meeting or the distribution of any literature or documents in
support of any such candidate or prospective candidate
• Maintenance of any person who is a member of any legislative body
constituted under the Constitution or for any local authority
• Registration of electors or the selection of a candidate for any legislative
body constituted under the Constitution or for any local authority
• Holding of political me of any kind, or the distribution of political literature
or political documents of any kind.

56. Immunity from certain criminal and civil proceedings
• The Trade Unions Act, 1926 has made provisions for
the members and office-bearers of a registered trade
union from criminal and civil conspiracies during the
strikes and causing any financial loss to the employer.
• Under Sections 17, 18, and 19 the Trade Unions Act,
1926 a registered trade union gets immunity in
certain criminal, civil, and contractual proceedings.

57. Criminal conspiracy in trade disputes
• Section 17 No office-bearer or member of a Registered Trade
Union shall be liable to punishment under sub-section (2) of
section 120B of the Indian Penal Code, 1860 (45 of 1860) in
respect of any agreement made between the members for the
purpose of furthering any such object of the Trade Union as is
specified in section 15, unless the agreement is an agreement
to commit an offence.
• Case Laws R.S. Ruikar v. Emperor, AIR 1935 Trade Unions have
the rights to declare strikes and to do certain acts in furtherance
of trade disputes. They are not liable for such acts or criminally
for conspiracy in the furtherance of such acts as trade unions act
permits, but there is nothing in the Act which apart from
immunity from criminal conspiracy allows immunity from any
criminal offences.
• Indeed any agreement to commit an offence would under
section 17, Trade unions act, make them liable for criminal
conspiracy.

58. Immunity from civil suit in certain cases
Section 18
(I) 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 in
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 of his labour as he wills.
(2) A registered Trade Union shall not be liable in any suit or other legal
proceeding in any civil court in respect of any tortious act done in
contemplation or furtherance of a trade dispute by an agent of the
Trade Union if it is proved that such person acted without the
knowledge of, or contrary to express instructions given by, the
executive of the Trade Unions.

59. Case Laws
• West India Stell Co. Ltd V. Azeez, 1990 LLR 142 (Ker) Immunity to a
trade union leader (such as the President} is not available when he is
discharged after holding an enquiry into his misconduct; A workman,
even if he is a trade union leader, inside the factory, is bound to obey
the reasonable instructions given to him by the superiors and to carry
out his duties duly assigned to him;
• Ahmedabad Textile Research Association v, ATIRA Employees' Union,
1995 LLR 91 (Guj) DB. It is not within the purview of the civil court to
prevent or interfere with the legitimate rights of the workmen to pursue
their demands by means of strike or otherwise as also acts done in
furtherance of a trade dispute
• Rohtas Industries Staff Union v. State of Bihar, AIR 1963 Pat 1970 It is
manifest in the present case that the striking workmen are not
prevented from taking recourse to the protection of section 18 of the
trade unions act mainly because the strike was illegal under section 24
(1) of the industrial disputes act

60. Case laws
• Case Laws Standard Chartered Bank v. Hindustan Engg. & General
Mazdoor Union, 2002 LLR 254 (Del) Immunity is provided to the
registered trade union from being sued by way of civil suit under
section 18. In respect of any act done in contemplation on
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 in
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 of his labour as he wills.
• UP Rajya Setu Nigam Sanyukt Karmchari Sangh v. U P State Bridge
Corporation, Lucknow 2000 The act has not provided that period of
illegal strike would be treated as period of unauthorized absence or
relationship of “employer and employee” would cease.
• Ahemdabad Textile Research Association v. ATRA Employees’
Union 1995 LLR 91 (GUR) It is not within the purview of the civil
court to prevent or interfere with the legitimate rights of the
workmen to pursue their demands by means of Strike or otherwise
as also acts done in furtherance of a trade dispute.

61. Disqualifications of office-bearers of Trade Unions
• Section 21A (1) A person shall be disqualified for
being chosen as, and for being member of the
executive or any other office – bearer of a
registered Trade Union if
(i) He has not attained the age of eighteen years
(ii) He has been convicted by a court in India of any
offence involving moral turpitude and sentenced
to imprisonment, unless a period of five years has
elasped since his release.

62. Recognition of Trade Union
• A trade/labor union is deemed recognized when
an employer agrees to negotiate with the union
on matters of pay and working conditions for the
workers represented by the union.
• Recognition may be voluntary or statutory.
• Voluntary recognition implies an employer
agrees to recognize a union without the use of
any legal procedures.
• Statutory recognition implies a union must make
an application to be recognized

63. What is RECOGNITION?
• Recognition means the expressed recognition of a
registered trade union by an employer or by an
employers association for the purposes of
collective bargaining.
• Recognition is different from registration.
• Recognition is provided to that union which
comprises of more than 50 per cent of the
employees in that establishment as its members.
• It is the employer and only the employer, who
awards recognition to one or more unions, or
refuses such recognition.

64. CONDITIONS FOR RECOGNITION
• All ordinary members are workmen employed in the same
industry or in industries closely allied to or connected with
another;
• It is representative of all workmen employed by the
employer in that industry or those industries;
• Its rules do not provide for the exclusion from membership
of any class of workmen
• Its rules provide for the procedure for declaring a strike ;
• Its rules provide that a meeting of its executive shall be
held at least once in every 6 months
• It is a registered trade union and that it has complied will all
the provisions of the Trade unions (amendment) Act, 1947.

65. RIGHTS OF RECOGNIZED TRADE UNIONS
• Right to sole representation
• Entering into collective agreement on terms of
employment and conditions of service
• Collection of membership subscription within the
premises of the undertaking, the right to check-off
• Holding discussion with departmental representatives
of its workers-members within factory premises
• Inspecting by prior agreement the place of work of any
of its members
• Nominating its representatives on works/ grievance
committees and other bipartite committee

66. Recognition of Trade Union
(1) There shall be a negotiating union or a negotiating council, as the
case may be, in an industrial establishment having registered Trade
Union for negotiating with the employer of the industrial
establishment, on such matters as may be prescribed.
(2) Where only one Trade Union of workers registered under the
provisions of this Chapter is functioning in an industrial
establishment, then, the employer of such industrial establishment
shall, subject to such criteria as may be prescribed, recognise such
Trade Union as sole negotiating union of the workers.
(3) If more than one Trade Union of workers registered under this
Code are functioning in an industrial establishment, then, the Trade
Union having fifty-one per cent. or more workers on the muster
roll of that industrial establishment, verified in such manner as may
be prescribed, supporting that Trade Union shall be recognised by
the employer of the industrial establishment, as the sole
negotiating union of the workers.

67. Recognition of Trade Union
(4) If more than one Trade Union of workers registered under this Code are
functioning in an industrial establishment, and no such Trade Union has
fifty-one per cent. or more of workers on the muster roll of that industrial
establishment, verified in such manner as may be prescribed, supporting
that Trade union, then, there shall be constituted by the employer of the
industrial establishment, a negotiating council for negotiation on the
matters referred to in sub-section (1), consisting of the representatives of
such registered Trade Unions which have the support of not less than
twenty per cent. of the total workers on the muster roll of that industrial
establishment so verified and such representation shall be of one
representative for each twenty per cent. and for the remainder after
calculating the membership on each twenty per cent.

68. Recognition of Trade Union
(5) Where any negotiation on the matters referred to in sub-section (1)
is held between an employer and a negotiating council constituted
under sub-section (4), consequent upon such negotiation, any
agreement is said to be reached, if it is agreed by the majority of
the representatives of the Trade Unions in such negotiating council.
(6) Any recognition made under sub-section (2) or sub-section (3) or
the negotiating council constituted under sub-section (4) shall be
valid for three years from the date of recognition or constitution
or such further period not exceeding five years, in total, as may be
mutually decided by the employer and the Trade Union, as the case
may be.
(7) The facilities to be provided by industrial establishment to a
negotiating union or negotiating council shall be such as may be
prescribed