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THE TRADE UNIONS ACT, 1926

Legal Status of a Registered Trade Union

Cancellation of Registration

The Registrar can withdraw or cancel registration of a trade union on an application being made for its cancellation or by giving atleast 2 months notice under any of the following circumstances -

a) If registration has been obtained by fraud and mistake;
b) If the union has ceased to exist;
c) If it has willfully contravened any of the provisions of the Act; or
d) If any rule which is required under Section 6, has been deleted. (Sec. 10)

Change of Name
A registered trade union may change its name, with the consent of atleast 2/3 of the total number of its members. Notice of change of name in writing and signed by the secretary and 7 members of the union, should be sent to the Registrar. The Registrar shall register the change in name if it is satisfied that the proposed name is not identical with the name of any other existing union and the requirements in respect of change of name have been complied with. (Secs. 23 7 25)

Dissolution of Trade Union
A registered trade union can be dissolved in accordance with the rules of the union. A notice of dissolution signed by any seven members and the Secretary of the Union should be sent to the Registrar within 14 days of the dissolution. On being satisfied the Registrar shall register the notice and the union shall stand dissolved from that date. The funds of the union shall be divided by the Registrar amongst its members in the manner prescribed under the rules of the union or as laid down by the government. (Sec. 27)

Amalgamation of Trade Union
Any registered trade union may amalgamate with any other union(s), provided that atleast 50% of the members of each such union record their votes and atleast 60% of votes so recorded are in favour of amalgamation. A notice of amalgamation signed by the Secretary and atleast 7 members of each amalgamating union should be send to the Registrar, and the amalgamation shall be in operation after the Registrar registers the notice. (Sec. 25)

Obligations of Registered Trade Unions

The general funds of a registered trade union should be spent only for the objects specified under section 15. The trade union may set up a separate political fund for furtherance of civic and political interests of members; contribution to this fund shall not be compulsory. (Sec. 16)
The account books and membership register of the trade union should be kept open for inspection by any of its members or office-bearers. (Sec. 20)
A copy of every alteration made in the rules of the union should be sent to the Registrar within 15 days of making the alteration. Sec. 28(3)
An annual statement of receipts and expenditures and assets and liabilities of the union for the year ending on 31st December prepared in the prescribed forms and duly audited should be sent to the Registrar within the prescribed time. This statement should be accompanied by a statement showing changes in office-bearers during the year and a copy of the rules as amended up to date. Sec 28(1) & (2)

Rights of Registered Trade Unions
A trade union has a right to demonstrate. A trade union has a right to appeal against an order of the Registrar either refusing or cancelling registration, to the civil court/High court, within the prescribed time. (Sec. 11)

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