Trade Union Act, 1926

A trade union, primarily, is a collection of workers in a given trade, industry, or company who
come together to negotiate an improvement in their jobs, benefits, working conditions, or social
and political status. Both employers and workers can form a trade union.
In India, all laws relating to trade unions are dealt with by the Trade Union Act of 1926.
Nonetheless, the Act does not require that all trade unions be registered, but it outlines the
registration procedures and privileges of registration.
What Is a Trade Union?
As per section 2(h) of the Trade Union Act, 1926, trade union means any combination, whether
temporary or permanent, formed primarily to regulate the relations between workmen and
employers or between workmen and workmen, or between employers and employers or to
impose restrictions on the conduct of any trade or business. In general, a trade union is an
organization created to represent the interests of workers or employers.
Before 1926, the workers were not allowed to form any trade union. The trade unions of the
workers were illegal before 1926. The Trade Union Act of 1926 allowed the workers to form a
trade union for themselves.
Examples of some trade unions in India:
 All India Trade Union Congress (AITUC)
 Bhartiya Mazdoor Sangh (BMS)
 Indian National Trade Union Congress (INTUC)
 Hind Mazdoor Sabha (HMS)
 Self-Employed Women’s Association of India (SEWA)
Objectives of a Trade Union
Following are the objectives of a trade union:
 To facilitate effective collective bargaining;
 To encourage the worker to register themselves as a trade union;
 To act as a pressure group;
 To secure certain social and economic benefits for the workers.
Procedure for Registration of a Trade Union
 The procedures for registering a trade union are given from section 3 to section 14 of the Trade
Union Act, 1926.
1. Section 3
Section 3 of the Trade Union Act talks about the appointment of the registrar. It states that the
government will appoint a registrar, who will be responsible for registering trade unions that
meet the Act’s conditions.
2. Section 4
According to section 4 of the Trade Union Act, before the amendment of 2001, only seven
members were required to form a trade union. After the 2001 amendment, 10% of the total
workers or a minimum of 100 workers, whichever is less, is required to form a trade union.
This 2001 amendment applies to the trade union of the workers only. For the trade union of the
employer, the old rule is applicable, i.e., seven or more members.
This new rule has a proviso that says that the total number of members (for both worker and
employer trade unions) can never be less than seven. Subsection 2 says that while making the
registration to the registrar, a minimum seven-member subject to 10% member or a minimum
of 100, whichever is less, is required.
For example, suppose an industry (say X) has 60 workers and 10 employers. The workers of
industry X cannot form a trade union because the 10% of 60 = 6 workers do not fulfil the
minimum criteria, that is, 7 workers. On the other hand, employers can form a trade union
because employers are more than 7.
Further, at the time of registration, the registrar will check if the trade union has the support of
a minimum of 50% of the total members working in that industry at the time of registration. If
it is not, he will not register the trade union.
3. Section 5
Section 5 of the Trade Union Act, talks about registration applications. It says every application
under section 4(1) shall contain:
 The name of the trade union and the address of its head office;
 The occupations and addresses of the members making the application;
 Information about the title, name, age, address, and occupation of the union’s officers. The
titles, names, ages, addresses and occupations of the office-bearers of the trade union.
 Section 5(2) further says that if the trade union has been in existence for more than one year
before making the application, then it also submit a general statement of the assets and
liabilities of the trade union.
4. Section 6
Section 6 of the Trade Union Act, covers the essential requirements of the trade union’s rules,
such as:
 The name of the trade union;
 The objective of the trade union;
 The general fund;
 Maintenance of a list of members;
 Rules for the admission of ordinary members;
 How a member of the executive shall be appointed or removed;
 The annual audit reports, etc.
5. Section 7
Under section 7 of the Trade Union Act, the registrar will see the name of the trade union. If it
resembles any other pre-existing trade union, the registrar shall refuse to register such union
and ask the persons applying for registration to alter the name of such trade union.
6. Section 8
After sections 5, 6, 7, the registrar under section 8 of the Trade Union Act, shall register the
name of such union as the registered trade union and enter the name of the trade union in a
register maintained in such form as may be prescribed by the appropriate government
and issue a certificate of registration.
7. Section 9
According to section 9 of the Trade Union Act, the registered trade union under section 8 shall
be a piece of conclusive evidence and, no question will be asked whether it is a registered trade
union or not for this Act.
Section 9A says that, if after the registration of trade unions under section 8, the members of
such trade unions decrease below 10% of the total members, or below 100 as the case may be,
the registrar shall revoke the certificate. The provisions of section 9A apply only to trade unions
of workers.