The Trade Union Act, 19261 (hereinafter referred to as the Act) was enacted on the 25th day of March, 1926 in order to shield the workers/ employees and unions. During the beginning of the 20th Century, India started to adopt industrialization and focused on developing on its capitalist economy. In order to proceed further with that, the rights and interests of the workers/ employees were to be protected to promote proper flow of income. Hence, the said Act was passed. Furthermore, the act provided and subtly mentioned benefits of registering trade unions under the Act and raised a ray of hope in the eyes of the employees in order to resolve their disputes. The process of forming, registering, and recognizing a trade union is essential in establishing the legal standing and operational framework of these organizations. Below is a detailed overview of the formation, registration, and recognition of trade unions. Trade unions are vital organizations that represent workers in various industries, striving to protect their rights and improve their working conditions.
Chapter II and III of the Act explicitly talks about registration of Trade Unions and Rights, Liabilities and Responsibilities of Registered Trade Unions respectively. The very meaning of “Trade Union” has been defined u/s 2(h) of the Act as “any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more Trade Unions.”
As mentioned above, the very notion has been defined u/s 2(h) of the Act. However, in a layman’s terms, a trade union is any group that is eligible to register as one unit altogether, inclusive of worker’s and employer’s organizations. A rough idea that can be penned down after reading the definition mentioned u/s 2(h) of the act is that the formation of trade unions and further registered trade unions is quintessentially
1 https://www.indiacode.nic.in/bitstream/123456789/13322/1/trade_unions_act_1926.pdf
required to regulate the relationships between workers and workers; workers and employers; employers and employers.
To know about it on the basic level, under the ID Act, 1947- A trade union is defined as that which has been registered under the Trade Unions Act, 1926. In that logic, an unregistered Trade Union (a Trade Union which has not been registered under the Trade Union Act, 1926) is not considered as a Trade Union under the ID Act, 1926. It is to further note that, it is absolutely not unlawful or illegal to have or be a part of an “unregistered trade union”, it is equally legal, however, an unregistered trade union cannot file a petition, represent its fellow members or an employee, be a part of any of the court’s/ tribunal’s proceedings under the ID Act. An unregistered trade union cannot raise its voice for one of its employees/ members in order to protect their rights and interests. On the other hand, a “registered trade union” can duly and legally practice all of that.
In India, it is often noticed that workers/ employees eagerly be a part of such trade unions that are not registered under the Trade Unions Act, 1926. After forming such a trade union, the said victimized workers demand for bonuses, wages or better working conditions or many more and sometimes the employers also recognize the same. Due to such a recognition, the workers were of the misconception that their unregistered association/ trade union have the same powers and benefits as that of a registered trade union, however, it is to be noted that the “unregistered” trade unions cannot take or claim any benefits laid down under the Industrial Dispute Act, 1947 as under the said act, any union that is not registered, is not considered as a Trade Union at the first place.
The registration of Trade Unions is not mandatory, however, it is always advised and recommended that the same is registered in order to enjoy certain immunity, protection and certain legal exemptions.
Trade unions are granted legal legitimacy and the power to represent their members in talks with employers through the official legal procedure of registration. Usually, certain national labor laws—like India’s Trade Unions Act, 1926, or comparable regulations in other nations—control this procedure. A thorough rundown of the steps involved in registering a trade union, including the necessary paperwork, the verification process, and the awarding of a certificate of registration, may be found below.
Section 132 of the Trade Union Act, 1926, it states about the incorporation of registered trade unions. However, it is pertinent to note that the Act only gives the privilege of a “legal” status, right to sue and be heard and etc. to the Trade Unions and nothing else, which the unregistered trade unions do not stand a chance to get. The Trade Unions Act, 1926 not only gives legal status to the registere trade unions but also provides benefits such as immunity from civil disputes, criminal disputes,
2 https://www.indiacode.nic.in/bitstream/123456789/13322/1/trade_unions_act_1926.pdf
empowering personnel to use funds etc. In the case of Balmer Lawrie Workers’ Union, Bombay and Anr. v. Balmer Lawrie & Co. Ltd. and Ors. [(1984) 2 SCC 608], the Hon’ble Supreme Court held that for the purposes of collective bargaining, a trade union that represents the vast majority of workers need to be acknowledged as the representative union. This guarantees that the majority of workers’ interests are fairly reflected; There are important reasons why a trade union is recognized, and it is not only a formality. It gives the union the authority to bargain with the employer on behalf of the employees, fostering workplace peace and defending workers’ rights.
A registered trade union can successfully represent employees and engage in collective bargaining with employers thanks to a number of rights and benefits granted by labor regulations. The main rights usually granted to a registered trade union are listed below, however they differ significantly from nation to nation and are usually supplied via trade union acts.
Right to Collective Bargaining. It is legally permissible for a recognized trade union to negotiate on behalf of its members with employers. This covers talks on pay, working conditions, hours, perks, and other aspects of the job. The union can negotiate settlements or agreements on behalf of employees through collective bargaining.
Right to represent members/ workers in Industrial Dispute. In labor conflicts with the employer, a registered trade union may speak on behalf of its members. This involves bringing up grievances, submitting complaints, and taking part in labor dispute court cases. To settle disagreements on behalf of employees, the union may petition labor courts or industrial tribunals.
Right to Protection under Law (Civil and Criminal). Immunity from Civil and Criminal Liability: The legislation grants registered trade unions specific legal protections. Acts taken in support of a lawful trade dispute, such as strikes, nonviolent protests, and other legal measures, shield union members and office bearers from civil or criminal penalties. Because of this protection, unions may operate without worrying about being sued for doing acts that further the interests of their members.
Right to secure better working conditions. A recognized trade union can campaign for more pay, safer working conditions, and better benefits for its members through collective bargaining and other union activities. Employee rights including health benefits, employment security, safety rules, and leave policies can also be secured by the union.
Right to Strike. As long as the strike is carried out legally (for example, by giving the employer adequate notice and avoiding illegal activity), a registered trade union is legally permitted to call for strikes or other forms of industrial action in order to pressure for workers’ demands or settle disputes. The union must follow the steps outlined in labor regulations, which include voting among members, informing the employer and authorities about the strike, and making sure the strike doesn’t contravene any legal limits.
Right to Seek Redressal for Unfair Labor Practices. Employers that participate in unfair labor practices, such as discriminating against union members, wrongfully dismissing union leaders, or attempting to stop union development, may be subject to legal action or complaints from a registered trade union. The union may file a complaint about these activities with labor courts or other authorities.
To sum up, the Trade Union Act of 1926 is essential to defending workers’ rights and fostering workplace unity. The Act gives workers the ability to collectively negotiate, seek improved working conditions, and settle disputes through registered unions by establishing a legal framework for the creation, registration, and recognition of trade unions. Significant legal rights and safeguards are granted under the Act’s provisions, guaranteeing that workers’ interests are adequately represented. As a result, in order to get the entire array of legal benefits and privileges, trade union registration is not only advised but also necessary.
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