Trade Union Act: An Overview


During the 20th century, there was so much industrialization, and the industrial sector was growing rapidly in every country across the world. With the growth of industrialization, the exploitation of labourers also increased because the prime focus of the majority of industries became greater production, which usually ignored the rights of laborers. When the focus was driven towards maximum output, the labour was exploited by various means, like more working hours, poor wages, fewer incentives, and sometimes no wages.

So in India, this act was enacted so that the unions could get registered and the labourers could have the right to bargain with their employers. This act provided the labourers with a blanket and safeguarded their interests. This act was one of the steps taken by the government to safeguard labour from unfair trade practises and work-related harassment by employees. It also provides the registered ones with certain rights and privileges that they can enjoy.

An Overview of the Trade Union Act

Basically, a group of labourers joined hands together is known as a "union of labourers" or "Trade Union," and it works to support its members on subjects involving pay, a positive work environment, working hours, and other advantages to which employees ought to be entitled rather than compensation for their labour.

They serve as a conduit between industry and its employees. These unions were only recently established institutions, but because of their subtle effect on the socio-economic lives of the workforce, they have grown to be an impactful force.

These unions are mostly the outcome of recent extensive industrial growth. They are not an offshoot of any pre-existing social structures or some different legislation. Governing the same is required in order to supervise and manage the operations of these Trade Unions, so this act is that piece of law that governs and supervises the operations related to Trade Unions. This act provides the procedure for how the unions can get themselves registered; it also provides the various rights of members. This act aims to provide fair pay and promotion benefits and better working space and educational facilities for union members.

Scope

The scope of any act has two narratives: objective and applicability.

Objective: Its goal is to give unions the ability to bargain over a variety of workplace necessities and to grant them corporate personality status so they can benefit from a number of benefits.

Applicability: Only unions that have registered under this act are covered by it. It offers these unions a number of benefits, such as acquiring corporate-like traits that give them a unique identity among members.

Table of Contents

This act has following sections-

SectionContent
Chapter I: Preliminary
1Short title, extent and commencement
2Definitions
Chapter II: Registration of Trade Unions
3Appointment of Registrars
4Mode of registration
5Application for registration
6Provisions to be contained in the rules of a Trade Union
7Power to call for further particulars and to require alteration of name
8Registration
9Certificate of registration
10Cancellation of registration
11Appeal
12Registered office
13Incorporation of registered Trade Unions
14Certain Acts not to apply to registered Trade Unions
Chapter III: Rights and Liabilities of Registered Trade Unions
15Objects on which general funds may be spent
16Constitution of a separate fund for political purposes
17Criminal Conspiracy in trade disputes
18Immunity from civil suits in certain cases
19Enforceability of agreements
20Right to inspect books of Trade Union
21Rights of minors to membership of Trade Unions
21ADisqualifications of office-bearers of Trade Unions
22Proportion of office-bearers to be connected with the industry
23Change of name
24Amalgamation of Trade Unions
25Notice of change of name or amalgamation
26Effects of change of name and of amalgamation
27Dissolution
28Returns
Chapter IV: Regulations
29Power to make regulations
30Publication of regulations
Chapter V: Penalties And Procedure
31Failure to submit returns
32Supplying false information regarding Trade Unions
33Cognizance of offences

Registering a Trade Union

This act describes how requests will be transmitted to the registering officer in the following ways and establishes the registration process:

  • This rule states that the registrar must receive the application from union members, who must number at least 7.

  • A statement that contains all the information about the Trade Union and its members is attached to this application.

  • The registrar designated by the government receives this application. He may also get in touch with the applicants if any modifications or additions are required.

  • Once all criteria have been satisfied, the registration certificate is issued, at which time the entity acquires the status of a corporate personality.

Rights and Liabilities of Trade Union

The law imposes the following obligations and privileges on unions that are registered under the act:

  • They have the right to establish funds of general nature that can be used for things like salaries and benefits, among other things.

  • Additionally, they have the right to establish a special fund that can be used for topics not covered by the general fund.

  • The members of this union may have an exemption in some circumstances, meaning that no lawsuits or other civil processes may be brought against them.

  • Additionally, they are entitled to an exemption under IPC Section 120B (2) in certain circumstances.

  • Books of account and other lists pertaining to members must be available for inspection by the appropriate person.

Conclusion

It can be concluded that members of these registered unions have a number of rights and liabilities, but there are also certain disadvantages. One of the limitations is that only trade unions recognised under the statute are eligible for perks. In India where there are mostly small unions that sometimes don't succeed in getting their demands considered. A Trade Union should be required to be registered in order for all unions to get the benefits and privileges mentioned in this act.

FAQs

Q1. Is there a different statute that permits the authorization of Trade Unions?

Ans. This is the only act that permits the unions to have a distinct identity by granting them lawful recognition.

Q2. Do all unions have to register mandatorily?

Ans. The act does not mandate that unions should mandatorily register.

Q3. Do the workers have the choice to go on strike?

Ans. Yes.

But, there is a requirement to inform employers in compliance with Act regulations.

Q4. Does recognised labour organisations have the option to change their name?

Ans. Yes, subject to the limitations of this Act and with the acknowledgement of two-thirds of their members.

Q5. Are minors eligible to join unions?

Ans. Anyone above the age of 15 may join, per Section 21 of the Act.

Updated on: 27-Jan-2023

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