Learn about the Trade Union Act of 1926: Formation, Registration, Appeals, Change of Name, and Returns. Get insights from CA Gaurav Agrawal, Chartered Accountant.
Applicability:
Any group of 9 or more persons can form a Trade Union.
However no Trade Union of the workmen shall be registered unless at least 10% or 100, whichever is less, persons engaged or employed in the Establishment or industry with which it is connected are the members of such trade union on the date of making of application for registration.
The minimum age limit for membership of a Trade Union is 15 years unless the rules of a particular trade union provide for higher age limit.
However for being an office bearer the person has to be above 18 years of age.
Registration:
The Act provides for the mode of registration of the trade union. Any 7 or more than 7 members of a trade union may by application apply for the registration of the trade union subject to the following 2 conditions:
a) At Least 7 members should be employed in the establishment on the date of the making of the application.
b) At Least 10% or a 100 members whichever is less, are employed in the establishment and should be a part of it on the date of making the application
Application of Registation:
Every application for a trade union’s registration must be presented in writing to the Registrar and include a copy of the union’s rules as well as a statement of the information listed below:
a) Firstly, the members submitting must mention their names, occupations, and addresses;
b) Secondly, the name of the Trade Union and its headquarters’ address must also be included; and
c) Finally, the titles, names, ages, addresses, and occupations of the Trade Union’s office holders must also be included.
A trade union’s executive must be organised in conformity with the Act’s requirements before it may be registered.
Appeals:
Any union which is aggrieved by a refusal to register or a withdrawal of registration made by the registrar can file an appeal:
a) In any High Court, if the head office of the trade union is located in any of the presidency towns;
b) In any labour court or industrial tribunal, if the trade union is located in such a place over which the labour court or the trade union has jurisdiction;
c) If the head office of the trade union is situated in any other location, an appeal can be filed in any court which is not inferior to the Court of an additional or assistant has chosen a principal Civil Court of original jurisdiction.
Change of name:
Any registered union is free to change its name provided it does so with the consent of not less than 2/3rd of its members.
Returns:
Each trade union should send the returns to the registrar annually on or before such a day as may be prescribed by the registrar. The return includes:
a) General statement
b) Audit report
c) All the receipts and expenditures incurred by the trade union
d) Assets and liabilities of the firm on the 31st day of December
Along with the general statement, a copy of the rules of the trade union, corrected up to the date of dispatch thereof, and a statement indicating all the changes made by the union in the year to which the statement is referred, be sent to the registrar.
Whenever any registered trade union alters its rules, such alterations should be conveyed to the registrar within a period of not less than 15 days from making such alterations.
Author – CA Gaurav Agrawal, Kishore Gupta & Co, Chartered Accountants in Practice from Central Delhi and can be contacted at [email protected] & Mobile Number 9711033545.
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