The document summarizes key aspects of the Trade Union Act of 1926 in India. The objectives of the act were to protect workers from exploitation, represent employee grievances, protect worker rights, and facilitate worker participation in management and decision making. The act defines concepts like trade disputes and registered trade unions. It outlines prerequisites for trade union registration like a minimum number of members. Registered trade unions have features like perpetual succession and the ability to own property. They can maintain general and political funds and have certain immunities under criminal and civil law regarding trade union activities.

1. Trade Union Act,1926
By-Subodh Shahare
M.Sc.(Biotech) & M.B.A(HRM)
Indian Institute Of Cost & Management
Studies & Research, Pune.

2. Introduction & Objective
 Trade Union Act,1926 associated with registration & Protection of Trade
Unions.
 Act applicable to Whole of India except Jammu & Kashmir.
 Trade Union means an association of workers in 1 or more occupations for
protection & promotion of the interest of working class including
workers/labours.
Objective- Following objectives were closely associated with Trade Union
Act,1926;
1) To protect workers against exploitation by employers.
2) To represent the grievance of employees on behalf of them to the
management.
3) To protect & safeguard rights of workers provided to them under
employment clause or labour laws.
4) To increase participation in management for Decision Making.
5) To take disciplinary action against workers doing in-disciplinary actions.

3. Important Concepts...
 Trade Dispute[Section2(g)]- A Trade Dispute means any dispute between
1)Employer & Workmen ,2)Workmen & Workmen,3)Employers &
Employers concerned with employment or non employment or terms of
employment or the working conditions provided.
 Trade Union[Section2(h)]- Trade Union means any combination either
temporary or permanent formed for maintaining the relations between
workmen & employers, employers & employers or workmen & workmen for
imposing restrictive conditions on conduct of any Trade or Business.
 Registered Trade Unions[Section2(e)]- A Registered Trade Union simply
means a Trade Union Registered under Trade Union Act,1926 implementing
all the clauses of the Act.
 Examples include-a)All India Trade Union Congress(AITUC)
b) Bhartiya Mazdoor Sangh(BMS),c)Hind Mazdoor Sabha(HMS),
d)National Labour Organisation(NLO),e)Trade Union Co-ordination
Centre(TUCC)

4. Prerequisites For Trade Union Registration
 Minimum 10% workmen out of total workmen's from relevant same industry should be
members of Trade Union at the Date of Registration.
 Minimum 7 workmen out of total workmen's from relevant same industry should be
members of Trade Union at the Date of Registration.
 Strength of the workmen in particular industry or establishment must be 70 at least to
enable them to form Trade Union & get registered under the Act, as 10% of 70 would be 7
which is the actual requirement under Trade Union Act,1926 for Trade Union Formation &
Registration.
 Application For Registration of Trade Union should contain-[Section5]
a) Name of 7 persons in Trade Union
b) Occupation of persons
c) Address of persons
d) Place of work of persons
e) Name of Trade Union
f) Address of Trade Union Head Office

5. Features Of Registered Trade Unions[Section13]
 Registered Trade Unions have Perpetual Succession(Trade Unions were
Separate Legal Entity as per provisions of Trade Union Act,1926 & were
not get vanished even after Death of members of Trade Unions)
 Registered Trade Unions Have Common Seal.
 Registered Trade Unions can Sue Others.
 Registered Trade Unions can be Sued by Others.
 Registered Trade Unions can acquire & hold both movable &
immovable property.

6. Rights & Liabilities Of Registered Trade Unions
 A Registered Trade Union has the right to maintain
a. A General Fund
b. A separate Political Fund
a. General Fund & Objectives-[Section15]
1. Payment of Salaries & allowances.
2. Payment of expenses for administration of Union including expenses spend on
defending any legal proceeding by or against the union.
3. Settlement of Trade Dispute.
4. Expenditure on Trade Union members for Death, Sickness or Accidents,etc.
5. Providing Educational,Social,Religious Benefits to Trade Union Members.
6. For any other unlikely uses of General Funds by Trade Unions except the
General Purpose use as per law provisions Trade Unions can be restrained by
court for applying its fund in any other purpose.

7. Continued....
b. Political Fund & Objectives-[Section16]-
1. Electorial Meeting for distribution of any document or literature supporting
Electorial candidate which might be a local authority or a member of
legislative body as per Indian Constitution.
2. For maintenance of member of legislative body as per Indian Constitution.
3. For Political Meeting or distribution of Political Literature or document of
any kind.
4. No workmen is obligated for contribution in political fund compulsorily.
5. Non Payment or Payment of political fund can’t be considered as an
important condition for Trade Union Membership.

8. Continued....
 Immunity From Punishment For Criminal Conspiracy[Sect.17]-
 No office bearer or member of Registered Trade Union will be punished under the
Sect.120B,punishment of criminal conspiracy of the Indian Penal Code(IPC)
regarding the matters of General Fund utilization for proper purpose.
 Immunity For Civil Suit To Certain Cases[Sect.18]-
No suit or other legal proceedings can be done against Registered Trade Union in any
Civil Court in following circumstances;
1) Delay in Trade Disputes like ‘Contract of Employment’.
2) Trade Union members showing interest or interfering in matters of trade or
business.
3) Trade Union members showing interest or interfering in matters of employment
of persons.
4) Trade Union members showing interest or interfering in matters of removal of
labour.
5) Trade Union members showing interest or interfering in matters of compensating
or remunerating the employees.

10. THANK YOU!!!