Whether retired employees can form a Trade Union?

Karur Vysya Bank Retirees Vs DCL (Madras High Court)

Whether retired employees can form a Trade Union?

Let us discuss the provisions of the Trade Unions Act 1926.  It is pertinent to note here that section 4 of the Act says any seven or more members of a trade union can apply for registration of a Trade Union by subscribing their names in the Trade Union Rules and by otherwise complying with the provisions of this Act with respect to registration, apply for registration of the Trade Union under the Act. Section 6 encompasses certain provisions mandatory for the Trade Union Rules. Here also there is no objection for registration of Trade Union for retired Employees. So in the Act, there is no discrimination between the existing employees and the retired employees.

In this case, the Deputy Commissioner for Labour rejected the application of retired employees of Karur Vysya Bank for the formation of the Trade Union because they are not in service at the time of application. The retired employees formed the association to espouse their grievances, including their right to pension and other benefits since the existing trade Union is not taking their grievances widely. There was no dispute that the members of the Association were retired employees of the Bank. By setting aside the order of the Deputy Commissioner of Labour, the Madras High Court said that the Authority cannot reject the application of the Association for the formation of a Trade Union by saying that they are not employees on the roll because the act does not make any discrimination between retired employees and existing employees.

Hon’ble high court held that, The Authority has no right to reject the application by narrowing the provisions under the act, that is against the very object of the Trade Unions Act and it is violative of Article 19(1) (c) of the Constitution of India.

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