MODULE 1: INDUSTRIAL RELATIONS CODE,
2020
Focus: The Trade Unions (Sections 6–12, 14, 16, 17)
1. Historical reasons for the formation of combinations of
workers
Industrial Revolution & Colonial Era in India: Harsh working
conditions, long hours, low wages, no safety measures.
Early worker organizations:
o 1870s–1900s: First worker associations (e.g. Bombay Mill Hands
Association, 1890).
o Strikes, protests, and spontaneous worker combinations.
Need for formal protection: Workers realized they were weak
individually, so they formed collective organizations to:
o Demand better wages and working hours.
o Secure safer working environments.
o Resist exploitation by employers and colonial administration.
Political context: Nationalist leaders encouraged unionization to
protect labour and link it with the independence movement.
2. Legal impediments to early Trade Unions
Common law principle: Combinations of workers were considered a
criminal conspiracy (restraint of trade).
No legal recognition: Early associations lacked legal status, could
not sue or be sued.
Risk of prosecution: Union leaders faced criminal charges for strikes
or collective bargaining.
Employer resistance: Employers refused to recognize unions,
retaliated with dismissals.
➡️These impediments led to the Trade Unions Act, 1926, which granted legal recognition and
immunities. Later, these provisions were absorbed into the Industrial Relations Code, 2020.
3. Role of the International Labour Organization (ILO)
India as a founding member of ILO (1919).
ILO principles influenced Indian laws:
o Freedom of association → right of workers to form unions.
o Collective bargaining → recognition of unions for negotiation.
o Protection of worker rights → immunities for lawful trade
disputes.
Many provisions of the Trade Unions Act, 1926 and now the IRC,
2020 align with ILO conventions on labour rights and unionization.
4. Sections 6–12: Trade Union – Definition, Registration,
Recognition
4.1 Definition (Sec. 6)
A Trade Union means any combination of workers (or workers and
employers) formed to regulate relations between workers and
employers, or among workers themselves.
4.2 Registration (Sec. 7–12)
Registrar of Trade Unions appointed by government.
Eligibility: Minimum 10% of workers or 100 workers, whichever
is less, must be members at the time of application.
Application: At least 7 members must sign it.
Must include:
o Name, address of head office.
o Names, occupations, addresses of members and office-bearers.
o Copy of union rules (covering objectives, admission, funds,
auditing, management).
Certificate of Registration → grants the union a separate legal
identity.
Registered union gets rights under IRC: ability to sue, be sued, own
property, and represent members.
4.3 Recognition (Sec. 14)
A union becomes the Negotiating Union if it has 51% or more
support among workers in the establishment.
If no single union has 51%, a Negotiating Council is formed with
representatives from unions having at least 20% membership.
Only the recognized union/council can formally negotiate with
employers.
5. Immunities in Trade Disputes (Sec. 16–17, IRC)
5.1 Section 16 – Civil Immunity
A registered trade union cannot be sued in civil courts for:
o Acts done in furtherance of a lawful trade dispute.
o Agreements among members that might otherwise be void under
“restraint of trade” rules.
5.2 Section 17 – Criminal Immunity
Members and office-bearers of a registered union are not guilty of
criminal conspiracy under IPC if the agreement is for a lawful trade
union objective.
Exception: No immunity if the act involves an offence (e.g. violence,
destruction of property).
➡️These immunities protect unions so they can strike, protest, or bargain without constant fear of
criminal/civil action — as long as their actions are lawful.
6. Summary (Exam Points)
Workers combined historically due to exploitation, poor conditions,
and lack of voice.
Legal obstacles (conspiracy laws, no recognition) pushed for
protective legislation.
ILO influence ensured alignment with international labour standards
(freedom of association, collective bargaining).
Sections 6–12 IRC: Definition, registration procedure, recognition of
negotiating union/council.
Section 14 IRC: Recognition ensures one official bargaining agent
(51% rule).
Sections 16 & 17 IRC: Key immunities (civil + criminal) allow unions
to function lawfully and effectively.
