The document discusses the rights and liabilities of trade unions under Indian law. It notes that while the right to form a union is constitutionally guaranteed, government employees cannot form unions. It also explains that collective bargaining and strike rights are not fundamental rights. The document then summarizes the rules around general and political funds of unions, including what purposes each can be used for. Finally, it mentions recommendations around minimum membership fees and requirements for unions to allow member inspections of accounts and submit annual returns and updates to office bearers to the Registrar.

1. BY
ADV. CAROLINE ELIAS
LABOUR LAW – I
RIGHTS AND LIABILITIES OF
TRADE UNION

2. (1) RIGHT TO FORM UNION IS A FUNDAMENTAL RIGHT :
 It is read in connection with Art.19 (1) (c) of Indian Constitution
which guarantees right to trade unions.
 But Govt. servants cannot form Trade Union u/Trade Unions Act
as decided in Tamil Nadu N.G.O. Union v. Registrar of Trade
Union[Mad 1963]
i.e. Govt. servants does not come under category of ‘workman’ as
defined in I.D.Act 1947.
 Even though right to Union is a guaranteed right, concomitant
rights of collective bargaining & strike are not fundamental rights,
as held in All India Bank Employees Association v. National
Industrial Tribunal(1962)
(2) FINANCE OF TRADE UNION CAN BE DEALT UNDER 2 HEADS –
GENERAL FUNDS & POLITICAL FUNDS:
 Both funds should not be mixed up &no compulsion shall be
exerted against the members to contribute towards political funds.

3. General Funds to be utilised only for purposes stipulated in
Sec. 15 as following :
 (1) For payment of salaries / allowances/ expenses to office
bearers.
 (2) For payment of expenses of administration of Trade Union &
for audit of accounts.
 (3) For prosecution / Defence of any legal proceeding to which
Trade Union is a party.
 (4) For giving compensation to members for loss arising out of
trade disputes.
 (5) For giving allowances to members / dependants. (for death/ old
age / sickness/accident/unemployment)
 (6) undertaking of liability under policy of assurances on (lives of
members against sickness/ accident/ unemployment)
 (7) For providing education/ social/ religious benefits to members
or dependents.

4.  (8) To upkeep periodicals published
 (9) Further objects as specified by Trade Union / notified by
appropriate Govt. in official Gazette.
Political Funds u/Sec. 6(1) to be used for promotion of civic &
political interest of its members in furtherance of any object
mentioned in Sub Section (2) :
 (1) For expenses of elections (legislative body / local authority/ for
any candidature / election)
 (2) For holding meetings/ distribution of any literature in support
of such candidates.
 (3) For maintenance of any person who is a member of the
legislative body / local authority.
 (4) For registration of electors / for selection of a cadidate for
legislative body/ local authority
 (5) For holding political meetings or for distributing any political
literature of any kind.

5.  As it is essential for Trade Union to have adequate funds for its
functioning, ‘National Commission on Labour Issues’
recommended to collect minimum membership fee (Rs. 1) to the
Trade Union.
Inspection, Audit & Annual Return:-
 Any member / office bearer of Trade Union can inspect accounts of
Trade Union as permitted u/ Sec. 20 of Trade Union Act.
 Registered Trade Union must send to Registrar within prescribed
period annual returns of assets, liabilities and expenditure etc.
 And a statement of changes in office bearers to the Registrar ;
otherwise punishment will be awarded to concerned office bearer /
executive of the Trade Union.