The Trade Union Act,1926 primarily deals with the registration of Trade Unions. It also ensures that the rights of these unions are protected, their liabilities and funds are properly utilised. This Act is also applicable to the association of employers.
These are unions are protected from criminal or civil prosecution under this Act so that they can carry out their activities of working for the benefit of the employees or employers.
According to section 4, in order to register as a Trade Union, seven or more members of a Trade union must according to the rules of the Trade Union subscribe their names. Application for the registration of Trade Union Must be made to the Registrar. Once the Registrar is satisfied that all the requirements are of a Trade Union are complied with in the application will register the Trade Union and as per Section 8 of the Act, will be provided with a Certificate of Registration.
Certificate of registration can be withdrawn if the Registrar is satisfied that the certificate has been obtained by fraud or mistake, or the union ceases to have the requisite number of members or the Union ceases to exist or has contravened any provision of the Act.
- The registration of the trade unions is not mandated but it is recommended as a registered trade union enjoy better benefits and rights under this act.
- A registered trade union can acquire, sell or hold immovable and movable property, can sue and enter contracts.
- According to the act, half of the office bearers of the trade union must be those employed in the same industry and half can be outsiders such as lawyers and social workers.
- A union may dissolve according to its rules and within 14 days of dissolution, a notice signed by 7 members and secretary of the union must be sent to the registrar.
- The fund of the union can be spent only on specific objects such as salaries, administrative expenses, defence or prosecution in any legal case for its rights, conducting trade disputes as well as compensating the loss caused by dispute, welfare of members etc.