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Rights And Liabilities Of Registered Trade Union

The protection of workers' rights is made possible in large part by trade unions. The trade unions have been given a few rights and obligations to help achieve this. The Industrial Revolution began in Europe in the early 1700's and continued until the 1900's.

The economy was changing from agriculture to one dominated by machinery and manufacturing. It was also a historical period filled with scientific discoveries and inventions, when the concept of industry was born and various forms of technology were created. All of this has led to standardization of production processes and manufactured goods.

Since India was a British colony during the industrial revolution, the same type of trade was carried out in India. While Europeans came to India primarily in search of raw materials, India soon became a market for finished goods and a source of cheap labor under the British system.

This began the exploitation of labor, especially in nascent industries such as textiles, jute, cotton, and railroads. The need to give workers a voice led to the formation of the first union in India in 1851, when the Bombay Textile Mills were established. At the same time, in 1954, a union was formed at a jute mill in Calcutta.

Trade unions must register to assert their rights and have legal status. Sections 3-14[ii] of the foregoing law describe the procedure by which trade unions are registered. When registering a trade union under Section 8 , the Registrar shall issue a certificate of registration in the form prescribed, conclusive proof that the trade union is duly registered under this Act. Chapter 3 of the act shows the rights and liability of trade unions.

Sections Related To Rights And Liabilities Of Registered Trade Union

After registration, trade unions receive certain rights and privileges. The rights guaranteed to the registered trade unions and their liabilities are provided in chapter 3 from section 15 to 28 of the Trade Union act, 1926.

Sec 15. Objects on which general funds may be spent.

16. Constitution of a separate fund for political purposes.

17. Criminal conspiracy in trade disputes.

18. Immunity from civil suit in certain cases.

19. Enforceability of agreements.

20. Right to inspect books of trade unions.

21. Rights of minors to membership of trade unions.

21.A. Disqualifications of office-bearers of trade unions.

22. Proportion of office bearers to be connected with the industry.

23.. Change of name.

24. Amalgamation of trade unions.

25. Notice of change of name or amalgamation.

26. Effects of change of name and of amalgamation.

27. Dissolution.

28. Returns

Section 15: Objects on which general funds may be spent. -The general funds of a Registered Trade Union shall not be spent on any other objects than the following namely:
  1. The payment of salaries, allowances and expenses to [office-bearers) of the Trade Union;
  2. The payment of expenses for the administration of the Trade Union including audit of the accounts of the general funds of the Trade Union;
  3. The prosecution or defence of any legal proceeding to which the Trade Union or any member thereof is a party, when such prosecution of defence is undertaken for the purpose of securing or protecting any ng of the Trade Union as such or any rights arising out of the relations of any member with his employer or with a person whom the member employs;
  4. The conduct of trade disputes on behalf of the Trade Union of member thereof;
  5. The compensation of members for loss arising out of trade disputes;
  6. Allowances to members of their dependents on account of death, old age sickness, accidents or unemployment of such members;
  7. The issue of, or the undertaking of liability under, policies of assurance on the lives of members, or under policies insuring members against sickness, accident or unemployment.
  8. The provision of educational, social or religious benefits for members (including the payment of the expenses of funeral or religious ceremonies for deceased members) or for the dependants of members;
  9. The upkeep of a periodical published mainly for the purpose of discussing questions affecting employers or workmen as such;
  10. The payment, in furtherance of any of the objects on which the general funds of the Trade Union may be spent, of contributions to any cause intended to benefit workmen in general, provided that the expenditure in respect of such contributions in any financial year shall not at any time during that year be in excess of one-fourth of the combined total of the gross income which has up to that time accrued to the general funds of the Trade Union during that year and of the balance at the credit of those funds at the commencement of that year; and
  11. Subject to any conditions contained in the notification, any other object notified by the [appropriate Government] in the (Official Gazette).]
     
Section 16: Constitution of a separate fund for political purposes:
  1. A Trade Union may constitute a separate fund, from contributions separately levied for or made to that fund, from which payments may be made, for the promotion of the civic and political interests of its members, in furtherance of any of the objects specified in sub-section (2).
     
  2. The objects referred to in sub-section (1) are:
    1. The payment of any expenses incurred, either directly or indirectly, by a candidate or prospective candidate for election as a member of any legislative body constituted under [the Constitution] or of any local authority, before, during, or after the election in connection with his candidature or election; or
       
    2. The holding of any meeting or the distribution of any literature or documents in support of any such candidate or prospective candidate; or
       
    3. the maintenance of any person who is a member of any legislative body constituted under the constitution or for any local authority; or
       
    4. the registration of electors or the selection of a candidate for any legislative body constituted under [xxx] [the Constitution] or for any local authority; or
       
    5. the holding of political meetings of any kind, or the distribution of political Literature or political documents of any kind.
    [(2A) In its application to the State of Jammu and Kashmir, references in Sub-section (2) to any legislative body constituted under the Constitution shall be Construed as including references to the Legislature of that State.]
     
  3. No member shall be compelled to contribute to the fund constituted under sub-section (1); and a member who does not contribute to the said fund shall not be excluded from any benefits of the trade union, or placed in any respect either directly or indirectly under any disability or at any disadvantage as compared with other members of the trade union (except in relation to the control or management of the said fund) by reason of his not contributing to the said fund; and contribution to the said fund shall not be made a condition for admission to the trade union.]

Section 17: Criminal conspiracy in trade disputes

No office bearer or member of a registered trade union shall be liable to punishment under sub-section (2) of section 120B of the Indian Penal Code, 1860 (45 of in respect of any agreement made between the members for the purpose of Furthering any such object of the trade union as is specified in section 15, unless the agreement is an agreement to commit an offence.

Section 18: Immunity from civil suit in certain cases

  1. Any registered trade union or any (office-bearer) or member thereof in respect of act done in contemplation or furtherance of a trade dispute to which a member of trade union is a party on the ground only that such act induces some other person to break a contract of employment, or that it is in interference with the trade, business employment of some other person or with the right of some other person to dispose of his capital or of his labour as he wills.
     
  2. A registered trade union shall not be liable in any suit or other legal proceeding in any civil court in respect of any tortious act done in contemplation or further a trade dispute by an agent of the trade union if it is proved that such person ate without the knowledge of, or contrary to express instructions given by, the executive the trade union.

Section 19: Enforceability of agreements

Notwithstanding anything contained in any other law for the time being in force, An agreement between the members of a registered trade union shall not be void or Voidable merely by reason of the fact that any of the objects of the agreement are Restraint of trade:

PROVIDED that nothing in this section shall enable any civil court to entertain am legal proceeding instituted for the express purpose of enforcing or recovering damage for the breach of any agreement concerning the conditions on which any member da trade union shall or shall not sell their goods, transact business, work, employ or be employed.

Section 20: Right to inspect books of trade unions

The account books of a registered trade union and the list of members thereof shall be open to inspection by an '[office-bearer] or member of the trade union at such times as may be provided for in the rules of the trade union.

21: Rights of minors to membership of trade unions
Any person who has attained the age of fifteen years may be a member of a Registered trade union subject to any rules of the trade union to the contrary, and may Subject as aforesaid, enjoy all the rights of a member and execute all instruments and Give all acquittances necessary to be executed or given under the rules:

21A. Disqualifications of office-bearers of trade unions:

  1. A person shall be disqualified for being chosen as, and for being member of the executive or any other office-bearer of a registered trade union if:
    1. He has not attained the age of eighteen years;
    2. he has been convicted by court in India of any offence involving moral turpitude and sentenced to imprisonment, unless a period of five years has Elapsed since his release.
       
  2. ny member of the executive or other office-bearer of a registered trade union who, before the commencement of the Indian Trade Union (Amendment) Act, 1964 (38 of 1964), has been convicted of any offence involving moral turpitude and sentenced to imprisonment, shall on the date of such commencement cease to be such member or office-bearer unless a period of five years has elapsed since his release before that date.
     
  3. In its application to the State of Jammu and Kashmir, reference in sub-section (2) to the commencement of the Indian Trade Union (Amendment) Act, 1964 (38 of 1964) shall be construed as reference to the commencement of this Act in the said State.

Section 22: Proportion of office-bearers to be connected with the industry

  1. Not less than one-half of the total number of the office-bearers of every registered Trade Union in an unorganized sector shall be persons actually engaged or employed in an industry with which the Trade Union is connected:

    PROVIDED that the appropriate Government may, by special or general order, declare that the provisions of this section shall not apply to any Trade Union or class of Trade Unions specified in the order.

    Explanation: For the purposes of this section, "unorganized sector" means any sector which the appropriate Government may, by notification in the Official Gazette. Specify.
     
  2. Save as otherwise provided in sub-section (1), all office-bearers of a registered Trade Union, except not more than one-third of the total number of the office-bearers Or five, whichever is less, shall be persons actually engaged or employed in the Establishment or industry with which the Trade Union is connected.

    Explanation: For the purposes of this sub-section, an employee who has retired or has been retrenched shall not be construed as outsider for the purpose of holding an office in a Trade Union.
     
  3. No member of the Council of Ministers or a person holding an office of profit (not being an engagement or employment in an establishment or industry with which the Trade Union is connected), in the Union or a State, shall be a member of the executive or other office-bearer of a registered Trade Union.]

Section 23: Change of name
Any registered trade union may, with the consent of not less than two-thirds of the Total number of members and subject to the provisions of section 25, change its name.

Section 24: Amalgamation of trade unions
Any two or more registered trade unions may become amalgamated together as one trade union with or without dissolution or division of the funds of such trade unions or either or any of them, provided that the votes of at least one-half of the members of each or every such trade union entitled to vote are recorded, and that at least sixty per cent of the votes recorded are in favour of the proposal.

Section 25: Notice of change of name or amalgamation

  1. Notice in writing of every charge of name and of every amalgamation signed, in the case of a change of name, by the Secretary and by seven members of the trade union changing its name, and in the case of an amalgamation, by the Secretary and by seven members of each and every trade union which is a party thereto, shall be sent to the Registrar and where the head office of the amalgamated trade union is situated in a different State, to the Registrar of such State.
     
  2. If the proposed name is identical with that by which any other existing trade union has been registered or, in the opinion of the Registrar, so nearly resembles such name as to be likely to deceive the public or the members of either trade union, the Registrar shall refuse to register the change of name.
     
  3. Save as provided in sub-section (2), the Registrar shall, if he is satisfied that the provisions of this Act in respect of change of name have been complied with, register the change of name in the register referred to in section 8, and the change of name shall have effect from the date of such registration.
     
  4. The Registrar of the State in which the head office of the amalgamated trade union is situated shall, if he is satisfied that the provisions of this Act in respect amalgamation have been complied with and that the trade union formed thereby is of entitled to registration under section 6, register the trade union in the manner provided in section 5 and the amalgamation shall have effect from the date of such registration.
     

Section 26 : Effects of change of name and of amalgamation

  1. The change in the name of a registered trade union shall not affect any rights or obligations of the trade union or render defective any legal proceeding by or against the trade union, and any legal proceeding which might have been continued or commenced by or against it by its former name may be continued or commenced by or against it by its new name.
     
  2. An amalgamation of two or more registered trade unions shall not prejudice Any right of any of such trade unions or any right of a creditor of any of them.

Section 27: Dissolution

  1. When a registered trade union is dissolved, notice of the dissolution signed by seven members and by the Secretary of the trade union shall, within fourteen days of the dissolution be sent to the Registrar, and shall be registered by him if he is satisfied that the dissolution has been affected in accordance with the rules of the trade union. And the dissolution shall have effect from the date of such registration.
     
  2. Where the dissolution of a registered trade union has been registered and the rules of the trade union do not provide for the distribution of funds of the trade union on dissolution, the Registrar shall divide the funds amongst the members in such manner as may be prescribed.

Section 28: returns

  1. There shall be sent annually to the Registrar, on or before such date as may be prescribed, a general statement, audited in the prescribed manner, of all receipts and expenditure of every registered trade union during the year ending on the 31st day of [December] next preceding such prescribed date, and of the assets and liabilities of the trade union existing on such 31st day of (December). The statement shall be prepared In such form and shall comprise such particulars as may be prescribed.
     
  2. Together with the general statement there shall be sent to the Registrar a statement showing changes of loffice-bearers] made by the trade union during the year to which the general statement refers together also with a copy of the rules of the trade union corrected up to the date of the despatch thereof to the Registrar.
     
  3. (A copy of every alteration made in the rules of a registered trade union shall be sent to the Registrar within fifteen days of the making of the alteration.
     
  4. For the purpose of examining the documents referred to in sub-sections (1), 2) and (3), the Registrar, or any officer authorized by him by general or special order, may at all reasonable times, inspect the certificate of registration, account books, registers, and other documents, relating to a trade union, at its registered office or may require their production at such place as he may specify in this behalf, but no such place shall be at a distance of more than ten miles from the registered office of a trade union

Rights And Liabilities Of Trade Unions Are:

  • A registered trade union must follow the provisions of the trade union act 1926. the following are the restrictions in the registered trade union as well as a right to Establish a general fund.
  • The office bearers must be given salaries.
  • The funds can be spent on the costs incurred for the administration of the trade union.
  • Compensating workers Due to loss in code out of trade dispute.
  • Expenses incurred in the worker's welfare activities.
  • Benefits are conferred to the workers in case of unemployment, disability, or death.
  • The cost incurred and legal suit.
  • Publishing Materials with the aim of discussing the questions affecting workman.
  • For education of the workers or their dependant.
  • Making provisions for workers of medical treatment
  • Taking insurance policy for workers' welfare
  • Section 16 Trade union cannot force members to subscribe to any political fund this might be a disadvantage and to the other side subscription to this fund is not necessary for a member
Provides that a trade union may establish a separate fund from the contributions made separately for the aforementioned objectives in order to advance the civic and political goals of its members. No union member may be forced to make a donation to the fund.

A legally recognized labour union may establish a separate fund with the goal of advancing the civic and political objectives of its members. A recognized trade union is not allowed to use its general finances for its members' political campaigns. The trade union must establish a separate political fund for political causes. Contributions to such a fund must be separately collected.

Here are a few of them:
  • the reimbursement of all expenditures made, either directly or indirectly, by a candidate or potential candidate for election to any governmental entity or local authority. The expenses encompass all expenditures related to his campaign, whether they occur before, during, or after the election.
  • maintenance of any person holding a position in a municipal or legislative body.
  • voter enrollment or the selection of a candidate for any legislative body or local authority.
  • the organization of political events of any kind or the dissemination of political literature or materials to trade union members.
  • A registered trade union is granted immunity in some criminal, civil, and contractual procedures under sections 17, 18, and 19.
In cases of criminal conspiracy under section 120-B of the IPC done by an office bearer or a member, section 17 grants immunity from liability.
  • However, this immunity is limited in that it only applies to contracts made by members for the advancement of legitimate trade union objectives as defined in section 15 of the Act, making it a partial immunity.
     
  • Registered Trade Unions have certain rights to do in promotion of their labour disputes, including calling for a strike and convincing members.
     
  • West Indies Steel Company Ltd. v/s Azeez 1998

    A trade union representative interrupted or blocked factory work for five hours in protest against the transfer of a worker to another area. It was determined that a factory worker had to follow any instructions given to him by his superiors. A union representative is not exempt from adhering to the regulations. A trade union official or any other employee is not permitted by law to share managerial duties.
     
  • Under section 20 A trade union must have all record books of accounts available and the list of membership for inspection upon request of any member or his representative.
     
  • As per section 21 even the miners have the right to be the member of trade union, but such minors cannot hold office.
  • As per section 21A, a trade union cannot appoint any person who has been convicted crime which is having Imprisonment for six months or more than that within the last five years.
     
  • As per section 22 at least half of the office pairs of a trade union must be engaged are employed in an industry to which the trade union is connected. Rules of natural justice must be followed while a trade union is to remove any office bearer.
     
  • Any registered organization is permitted to change its name under Section 23 of the Act as long as at least two-thirds of its members agree to the change and Section 25 of the Act's requirements are met.
     
  • According to Section 24, two or more trade unions may merge to create a single trade union with or without dividing the funds. Only after the votes of half of each trade union's members have been cast, and if 60% of the votes cast support the plan, can such an amalgamation take place.
     
  • Section 25: Every name change, and amalgamation must include a written notification to the Registrar that is properly signed by the Secretary and seven members of the Trade Union changing its name, as well as by the Secretary and seven members of every Trade Union that is a party to the amalgamation.

The Registrar may decline to register the change of name if they believe that the proposed name is the same as any other existing Trade Union's name or is so similar that it could mislead the general public or the members of either Trade Union.

The amalgamation will take effect as of the date of such registration if the Registrar of the State in which the main office of the combined Trade Union is located is satisfied that the requirements of this Act have been met.

According to Section 27 of the Act, a company may be dissolved as follows:

A notice of the dissolution of a registered trade union, which must be signed by seven members and the trade union secretary, must be served to the registrar within 14 days of the dissolution. If the registrar is satisfied that the dissolution has been carried out in accordance with the trade union's established rules, the dissolution may be registered.

The registrar may distribute the funds in any authorized method when a union has been dissolved but its regulations do not specify how the fund is to be distributed following the dissolution.

According to Section 28, each trade union must submit its yearly returns to the registrar on or before the date that the registrar may specify. The refund contains:

Statement in general Audit report Every penny that the organization has brought in and spent Assets and liabilities of the company as of December 31st According to Subsection 2 of this Section, the general statement must be sent to the registrar along with a copy of the trade union's rules that has been updated as of the date of dispatch and a statement listing all the changes the union has made during the year in question. Any time a recognized trade union modifies its rules, those changes must be communicated to the registrar within at least 15 days (about 2 weeks) of the modification.

Conclusion
For workers who are unable to advocate for themselves individually, the emergence of labour unions is a blessing. Trade unions are established with the goal of engaging in collective action for their rights and advantages. The Trade Union Act was passed to ensure the efficient operation of unions, and it contains rights and obligations that guard against potential exploitation and safeguard interests. The Trade Unions Act of 1926 calls for the registration of trade unions to create a legitimate labour organization that will allow for joint bargaining.

Suggestion
Trade union is playing an important role in todays' industries but in spite of the efforts made by several central trade unions, women participation is very low. I think this need to be changed.

Bibliography:
  1. Labour & industrial laws [bare act]
  2. P.L. malik's handbook of labour and industrial law
  3. Indian kanoon
  4. https://www.ourlegalworld.com/rights-and-liabilities-of-a-trade-union-under-tu-act-1926/
  5. https://lawpage.in/labour_laws/rights_and_liabilities_of_a_registered_trade_union_2014712019
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