Trade Union Act – Registration, Legal Provisions, Rights & Compliance Guide

ActFeb 19, 20266 Min min read
LJ
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Key Insights 

 

  1. The Trade Union Act creates rules for workers to negotiate as a group.
     
  2. The Trade Union Act requires trade unions to register formally and sets rules for when unions join together.
     
  3. The Trade Union Act offers legal protection and explains what happens if the rules are not followed.

 

 The Trade Unions Act sets out the rules for forming, running, and managing unions. Important examples are trade unions act Singapore, the Trade Unions Act 1959, the Trade Unions Act Nigeria, and trade unions act kenyaThe UK's Trade Disputes and Trade Unions Act 1927 also had a major impact on labour relations. Together, these laws outline the rights, duties, and ways to resolve disputes.

What is Professional Tax Madhya Pradesh?

 

You can understand the Trade Unions Act, you need to know its main rules. In India, the Indian Trade Union Act, especially the Registration of Trade Union Act 1926, requires registration of trade union officially. 

 

The Trade Unions Act law also explains how amalgamation of trade union and lists trade unions act punishment for breaking the rules. These measures help you to keep industrial relations organised.

 

The Trade Unions Act acts as a rulebook for collective bargaining. It explains a union's structure, rights, and limits, much like a company's charter guides how it works. This legal “constitution” protects members and helps ensure fair negotiations.

 

Example:


As the HR head, I often refer to the Indian Trade Union Act. When we set up a new unit, we checked its certificate under the Registration of Trade Union Act 1926. This helps ensure that all negotiations and any amalgamation of trade union activities follow the law and avoid trade unions act punishment.

Highlights of the Trade Unions Act 

 

Have you ever thought about how trade unions in India became legal? 

 

The Trade Unions Act of 1926 made it happen. Before this law, union leaders risked legal trouble for standing up for workers’ rights. You can use this Act, unions could register, operate openly, and protect their members without being seen as criminals.

Main Points and Structure:
 

  • To register a union, at least 7 members are needed. A 2001 amendment added that at least 10% of workers or 100 workers, whichever is less, must be members for registration.
  • Unions are protected from civil lawsuits and charges of criminal conspiracy under IPC 120B when involved in legitimate trade disputes.
  • The law explains how unions can use their general funds, such as for salaries and legal cases, and also lets them set up a separate fund for political activities.
  • At least half of a union’s office bearers must work in the same industry.

 

The Trade Union Act made unions legal, but the 2020 Industrial Relations Code has introduced stricter rules that could make collective bargaining harder in the future.

History and Background of the Trade Union ACT


The Indian Trade Unions Bill, 1925, was passed by the Legislature and received assent on 25 March 1926. It took effect on 1 June 1927 as the Indian Trade Unions Act, 1926 (16 of 1926). Section 3 of the Indian Trade Unions (Amendment) Act, 1964 (38 of 1964) omitted the word “Indian,” so the Act is now known as THE TRADE UNIONS ACT, 1926 (16 of 1926).

 

Amending Acts and Adaptation Orders:
 

1. The Indian Trade Unions (Amendment) Act, 1928 (15 of 1928).

2. The Government of India (Adaptation of Indian Laws) Order, 1937.

3. The Repealing and Amending Act, 1942 (25 of 1942).

4. The Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948.

5. The Adaptation of Laws Order, 1950.

6. The Part B States (Laws) Act, 1951 (3 of 1951).

7. The Indian Trade Unions (Amendment) Act, 1960 (42 of 1960).

8. The Indian Trade Unions (Amendment) Act, 1964 (38 of 1964).

9. The Central Labour Laws (Extension to Jammu and Kashmir ) Act, 1970 (51 of 1970)

 

The Trade Unions Act, first passed in 1926, has changed over the years as India’s political and industrial environment has developed.

 

Features & Importance of Trade Union ACT

 

The Trade Unions Act makes collective bargaining legally possible, so labour rights are not just ideas but can actually be enforced and protected.


Here are the features and importance of the Trade Union Act:
 

Here are the features and importance of the Trade Union Act:

Features and Importance of the Trade Union Act

Example

The Bill was proposed after the Legislative Assembly recommended, on March 1, 1924, that legislation be created to register Trade Unions in India.

In 1924, after textile strikes in Mumbai, the Legislative Assembly heard workers' concerns. 

 

Their input helped create a Bill that changed groups like the fictional “Bombay Mill Hands Association” from informal collectives into legally recognised unions with protected rights.

Only minor changes were made to the draft after receiving feedback; the main principles of the Bill stayed the same.

When the "Bengal Jute Workers' Union" reviewed the 1924 draft, they suggested making the fund rules clearer. 

 

The final Act included this change, but its main principle of giving legal identity and protection to registered unions stayed the same as in the original proposal.

The Bill enables Trade Unions to register if they meet certain conditions, protecting the rights of their members and offering legal protection.

The "Kanpur Leather Artisans' Guild" met the Act's requirements by having seven members and a formal constitution. 

 

After registering, they gained legal status, which protected their treasurer, Amit, from personal liability when they successfully negotiated for safer workshop conditions.

 

The Act provides workers with a strong legal basis, changing their collective action from a simple request to a recognised and protected negotiation.

Conclusion

 

The Trade Unions Act gives workers a legal foundation that turns their collective action into a strong and protected negotiation at the bargaining table. The Trade Unions Act is the main law that supports collective bargaining. It changes worker solidarity from just an informal effort into a protected and enforceable right. 

FAQS

 

What is a Trade Union? 

A trade union is a group of workers who come together by choice to support and defend their shared interests and rights. They mainly do this by negotiating with employers. Trade unions, whether set up for a short time or permanently, aim to help their members get better pay, safer workplaces, job security, and improved working conditions.

 

Is it true that companies usually don’t like it when their employees become part of a union?  

It is generally true that companies often resist or dislike when employees form a union. Employers often see unions as a threat to their control because unions limit management’s ability to make decisions on their own and can raise labour costs, such as wages and benefits. Unions may also make workflows more rigid and bureaucratic, and they can sometimes lead to strikes.

 

What is the meaning of “legal status of registered trade unions” under the Trade Unions Act of 1926?  

The Trade Unions Act of 1926 gives registered trade unions legal status as corporate bodies. They have perpetual succession, a common seal, and can make contracts, own property, and take legal action in their own name. This status also protects them from some civil and criminal liabilities during trade disputes.

 

What are three things that trade unions could do to regain their former influence and grow their memberships?  

Trade unions can become more influential and attract new members by finding creative ways to organise gig workers, using digital tools to communicate better, and partnering with community groups. These steps help unions adapt to today’s work environment and strengthen their bargaining power.

 

Who is the Registrar of Trade Unions?

The Registrar of Trade Unions is a government official who manages the registration and regulation of trade unions. This person ensures unions follow the Trade Unions Act, approves or rejects applications, keeps records, and enforces the rules.

 

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