THE TRADE UNION ACT, 1926 – Notes

trade-union-act

Section 2: Definition:

Appropriate government has been defined in relation to the object of a trade union act. Appropriate government is state government or central government.

  1. Executive: means the body which manages the affair of a trade union. It should be responsible for managing the affair of the trade union.
  2. Office Bearers: includes any member of the executive of the trade union.
  3. Prescribed: means prescribed by regulations made under the trade union act.
  4. Registered Office: Office of a trade union which is registered the under trade union act as the head office of such trade union.
  5. Registered Trade Union: Trade union registered under trade union act.
  6. Registrar: As provided under sec.2 (1) Registrar of trade union appointed by the appropriate government under sec.3.
  7. Trade Dispute: any dispute:




    • Between employer and worker.
    • Between workmen and workmen.
    • Between employers and employers.
  1. Trade Union: Section 2(h) defines which can be analysed into:
  2. Any combination whether temporary or permanent.
  3. The combination formed for the purpose of:
  4. Regulation relation between:
    • Workmen and employer.
    • Workmen and workmen.
    • Employers and employers.
  1. Imposing restrictive condition of any trade or business:
  • Any agreement between parties to business.
  • Any agreement between employer to employment.
  • Any agreement in consideration of the sale of goods.

Case:- Society v/s London Theatres of Varieties.

Registration of Trade Unions:

Section 3: Appointment of Registrars:

The appropriate government shall appoint a person to be the registrar of trade union for each state.




Section 4: Mode of Registration:

     A trade union may be a registered, unregistered or a recognised trade union. There is a basic distinction between these different trade union. The members of a recognised and registered trade union enjoy such benefit as the member of the unregistered trade union do not.

Section 5: Application of Registration:

  1. The application should be sent to the registrar in which at least seven members must be subscribed names to the rules of Trade Union.
  2. Accompanied statement of following particular:
    • Names, occupation and address of members.
    • Name, address of its head office.
    • Titles, name, age, occupation of office bearers.
  1. A general statement of assets and liabilities of trade union prepared in the prescribed form.

Section 6: Provision to be contained in the Rules of Trade Union:

  1. The executive is constituted in accordance with the provision of trade union act.
  2. The rules are:
    • Name of Trade Unions.
    • Objects.
    • Purposes of the general fund in the trade union.
    • Maintenance of list of members.
    • Admission of an ordinary member.
    • Payment of minimum subscription by members.
    • The condition under which member shall entitle to any benefit.
    • The manner in which the rules shall be amended.
    • The manner in which executive and office bearers shall be affected and
    • Duration, not more than 3 years.
    • Safe Custody.
    • The manner in which trade union may be dissolved.

Case: Bokagen Cement Corporation Workmen Union v/s Cement Corporation of India Limited.




Section 7: Power to call for further particulars and to require alteration of name.

Section 8: Registration:

    The registrar will register the trade union if he is satisfied that the trade union has complied with all the requirement of trade union activities in regard to registration.

Section 9: Certificate of Registration:

    The registrar on registering a trade union shall issue a certificate of registration in the prescribed form.

Section 9A: Minimum requirement about membership of trade union:

    A registered union of workmen shall at all time continue to have not less than ten per cent of one hundred of the workmen whichever is less, subject to a minimum of seven, engaged or employed is an establishment or industry with which it is connected as its members.

Section 10: Cancellation of Registration:

    The registrar can exercise his power in the following cases:

  1. Application to be verified in a prescribed manner.
  2. Registrar is satisfied that the certificated is obtained fraud or mistake.
  3. Where the trade union has ceased to exist.
  4. Allowed any rule to continue in force which is inconsistent with provisions.
  5. Section 10 registrar satisfied that a workman ceases to have a number of members, the registration can be cancelled.

Section 11: Appeals:

     A limited right of appeal from the decision of registrar is granted by section 11 of the trade union act. Any person aggrieved by the refusal of the registrar, a trade union or by withdrawal or cancellation of a certificate of registration has the right of appeal.

Section 12: Registered Office:

     All communication notice to a registered trade union may be addressed to its registered office. Notice of any change in the address of head office shall be given within 14 days of the change in writing, the change shall be recorded in section 8.

Section 13: Incorporation of registered Trade Union:

  1. It becomes a body corporate by the name under which is registered.
  2. It gets perpetual succession and a common seal.
  3. Can acquire and hold movable and immovable property.
  4. Can contract through an agent.
  5. Can sue and be sued in its registered name.

Rights and Liabilities of Trade Union:-

Rights Liabilities
Right to represent Cannot use funds other than under section 15
Right to collect the fee Enforceability of agreement- (sec.19)
Become corporate body- (sec.13) The proportion of office bearers- (sec.22)
Create fund- (sec.16) Returns- (sec.28)
Immunity from the criminal conspiracy- (sec.17)
Immunity from civil suites- (sec.18)
Right to inspect books- (sec.20)
Right to obtain membership- (sec.21)
Right to change the name- (sec.23)
Right to amalgamation- (sec.24)
Right to dissolve- (sec.27)

 

Recognition:

It was incorporated in chapter III-A (from sec.28-A to sec. 28-I). But these provisions have not been put into operation so far and have thus remained a dead letter on the statute of book.

Section 28 (A): Deals with ‘Appropriate Government’.

Section 28 (B): Make provision for appointment, constitution, powers and procedures of Labour courts.

Section 28 (C): Recognition by agreement:

  • Shall record the memorandum in a register in the prescribed manner.
  • Such an agreement may be revoked by either party.
  • While such an agreement is in force, the trade union shall in relation to the employer with whom the agreement is made.

Section 28 (D): Condition for recognition by order of a Labour Court:

  1. All its ordinary members are workmen employed in the same industry.
  2. Workmen employed by an employer in the industry.
  3. Its rule does not provide for the exclusion from membership.
  4. Rules provide for the procedure for declaring strikes.
  5. Meeting of its executive held in every 6 months.
  6. It is a registered trade union and it has compiled with all the provision of trade union act.

Section 28 (E): Application to and grant of recognition by Labour Court:

  1. Where applied for recognition has failed to obtain within a period of three-month such application may apply to labour court for recognition by that employer.
  2. A single application may be made:
    • By more than one employer.
    • By an association of employer.
  1. The Labour Court may call for further information.
  2. Investigate whether the trade union fulfils the condition of recognition.
  3. If the Labour Court is satisfied, it shall make an order directing such recognition.
  4. Every order shall be forwarded to the appropriate government.

Section 28 (F): Rights of Recognized Trade Union:

  1. Shall entitled to negotiate with employers in respect of matter connected with the employment or non-employment.
  2. Shall be construed as requiring as the employer to send replies to letter on or grant interviews regarding matters.
  3. Any dispute between the employer and executive shall be referred to the Registrar whose decision shall be final.
  4. Shall be entitled to display notice of the trade union in any premises.

Section 28 (G): Withdrawal of Recognition:

  1. The Labour Court for withdrawal of the recognition on any of the following:
  • Committed any unfair practice, within three months to the date of application.
  • Failed to submit any returned referred in Sec.28J.
  • Ceased to be representative of the workmen referred in clause (b) Sec.28D.
  1. Serve notice in the prescribed manner on the trade union to show cause why its recognition should not be withdrawn.
  2. Labour Court is satisfied that the trade union is no longer fit to be recognised, it shall make an order declaring that the recognition of trade union has been withdrawn, and forward as a copy to the appropriate government.

Section 28 (H): Application for fresh Recognition:

     On the expiry of not less than 6 months from date of withdrawal, then may again apply for recognition.

Section 28 (I): recognised trade union to submit prescribed returns:

     Shall submit to the registrar at the prescribed time and in the prescribed manner such returns.

 

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