Labour Law - Internal Exam Prep

UNIT-I

The Minimum wages Act 1948 (with latest Amendments)

1.8 Object of the Act

1.9 Constitutional Validity

1.10 National Minimum Wages

1.11 Enforcement of Minimum Wages

1.12 Important Features of the Act

1.13 Interpretations(Section 2)

1.14 The Schedule I and I


Unit : II
Trade Union Act 1926 (with latest Amendments)

5.1 Preliminary

5.2 Registration of Trade Unions

5.3 Rights and liabilities of registered Trade Unions

5.4 Regulations Penalties and procedure

5.5 The Employees Standing Order Act 1946 (with latest Amendments) and

Collective Bargaining, Disciplinary Proceedings



THE TRADE UNIONS ACT, 1926

  • Act No. 16 of 1926

  • Passed on: 25th March, 1926 , Applied - 1st June 1927

  • Modified as on 19th November, 2018

CHAPTER I – PRELIMINARY

  1. Short Title, Extent, and Commencement

o   Called the "Trade Unions Act, 1926".

o   Extends to the whole of India.

o   Came into force on such date as the Central Government may appoint by notification in the Official Gazette.

  1. Definitions

o   “Appropriate Government” means, in relation to Trade Unions whose objects are not confined to one State, the Central Government, and, in relation to other Trade Unions, the State Government.

o   "Executive" means the body, by whatever name called, to which the management of the affairs of a Trade Union is entrusted.

o   "[Office-bearer]" in the case of a Trade Union, includes any member of the executive thereof, but does not include an auditor.

o   "Registrar" is appointed by the appropriate Government and includes Additional/Deputy Registrar.

o   "Trade dispute" means any dispute between employers and workmen or between workmen and workmen, or between employers and employers relating to employment, non-employment, terms or conditions of labour.

o   "Trade Union" means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or workmen and workmen, or employers and employers, or imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more Trade Unions.

o   The Act shall not affect: agreements between partners as to their own business; agreements between an employer and employees as to employment; agreements in consideration of the sale of goodwill or instruction in any profession/trade/handicraft.

 

CHAPTER II – REGISTRATION OF TRADE UNIONS

  1. Appointment of Registrars

    • The appropriate Government shall appoint a Registrar of Trade Unions for each State.

    • May appoint Additional and Deputy Registrars.

  2. Mode of Registration

    • Any seven or more members may apply for registration by subscribing names to the rules and complying with the Act.

    • Application remains valid if not more than half the applicants withdraw before registration.

  3. Application for Registration

    • Made to the Registrar.

    • Must be accompanied by: a copy of the rules, names/occupations/addresses of members applying, name/address of Trade Union, office-bearers' details.

    • If existing for over a year, a general statement of assets/liabilities must be delivered with application.

  4. Provisions to be Contained in the Rules


    • Rules must provide for: name; objects; purposes for which funds are applicable; maintenance/inspection of member list; membership admission; subscription (not less than twenty-five naye paise per month); benefits/fines; amendment of rules; appointment/removal of office-bearers; custody/audit of funds; dissolution procedure.

      1 INR Yrs-  Rural;
      3 INr yrs - Other unorganised sector
      12 INR yrs -
      0.25 INR - Per month

  5. Power to Call for Further Particulars and Require Alteration of Name

    • Registrar may require extra information and can refuse registration until satisfied.

    • Registrar may require a change of name if it is identical/confusingly similar to another Trade Union.

  6. Registration

    • Registrar registers upon being satisfied with all requirements.

  7. Certificate of Registration

    • Issued in prescribed form; conclusive evidence of due registration.

  8. Cancellation of Registration

    • May be withdrawn/cancelled: by Trade Union’s application; or if obtained by fraud/mistake, ceased to exist, willfully contravened the Act, or has inconsistent rules.

    • Requires two months’ notice, unless withdrawn at application of the union.

  9. Appeal

    • Aggrieved persons may appeal refusal, withdrawal, or cancellation of registration within the prescribed period to the High Court or a designated lower court.

    • Further appeal to High Court if appeal is dismissed.

    • Appellate court follows similar powers as in suits under Civil Procedure Code, 1908.

  10. Registered Office

    • Notices/communications addressed to registered office.

    • Change of address must be notified in writing within 14 days.

  11. Incorporation of Registered Trade Unions

    • Registered Trade Union is a body corporate: "by the name under which it is registered," with perpetual succession, common seal, power to acquire/hold property, to contract, to sue and be sued.

  12. Certain Acts Not to Apply

    • The Societies Registration Act, 1860; The Co-operative Societies Act, 1912; The Companies Act, 1956 do not apply to registered Trade Unions; their registration under these Acts is void.

CHAPTER III – RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS

  1. Objects on Which General Funds May Be Spent

    • Payment of salaries, allowances, and expenses to office-bearers.

    • Administrative expenses including audits.

    • Legal proceedings for protecting rights of the union/member.

    • Conduct of trade disputes.

    • Compensation for loss arising out of trade disputes.

    • Allowances to members/dependants due to death, old age, sickness, accidents, or unemployment.

    • Assurance policies for members against sickness, accident, unemployment.

    • Educational, social, or religious benefits for members/dependants.

    • Upkeep of periodicals for discussing employer/worker issues.

    • Payments/contributions to causes benefiting workmen in general (up to one-fourth of income and balance).

    • Any other object notified by the appropriate Government.

  2. Constitution of a Separate Fund for Political Purposes

    • May constitute such fund from separately levied contributions for civic/political interests.

    • Payment of election expenses, meetings, literature, supporting candidates, maintenance of elected persons, registration of electors, selection of candidates, holding political meetings, etc.

    • Contribution is voluntary; non-contributors not discriminated except in management of the fund.

  3. Criminal Conspiracy in Trade Disputes

    • No office-bearer/member of registered union liable under Section 120B(2) IPC for agreements furthering union objects, unless agreement is for commission of an offence.

  4. Immunity from Civil Suit in Certain Cases

    • No suit/proceeding maintainable in Civil Court against registered unions/office-bearers/members for acts in contemplation/furtherance of a trade dispute that induce someone to break employment contract or interfere with trade/business.

    • Not liable for tortious acts by an agent if done without knowledge or contrary to executive’s instructions.

  5. Enforceability of Agreements

    • Agreement between trade union members is not void or voidable only because it restrains trade.

    • Courts cannot enforce or award damages for breach of agreement about sale of goods, business, employment contrary to group decisions.

  6. Right to Inspect Books

    • Account books and member lists are open for inspection by office-bearers or members as per rules.

  7. Rights of Minors

    • Persons 15 years or older can be members, enjoy all rights, and execute all instruments unless rules of the union say otherwise.

 

21A. Disqualifications of Office-bearers

- Disqualified if:

(i) under 18 years;

(ii) convicted in India of an offence involving moral turpitude and sentenced to imprisonment, unless 5 years have passed since release.

  1. Proportion of Office-bearers to Be Connected with Industry

    • Not less than half of the total office-bearers must be actually engaged or employed in the industry.

    • Government may exempt trade unions from this.

  2. Change of Name

    • Allowed with ⅔  two-thirds of total members' consent, and subject to statutory procedure.

  3. Amalgamation

    • Two or more registered unions may amalgamate, provided at 50% least half of eligible members vote and at least 60% of votes favor amalgamation.

  4. Notice of Change of Name or Amalgamation

    • Notice in writing signed by the Secretary and 7 seven members (per union in case of amalgamation) must be sent to the Registrar (and to destination state if different).

  5. Effects of Change of Name/Amalgamation

    • Does not affect rights, obligations, or legal proceedings.

    • Amalgamation does not prejudice rights of unions or creditors.

  6. Dissolution

    • Notice of dissolution, signed by 7 members and Secretary, sent within 14 days, is registered if dissolution is per rules and then takes effect.

    • If rules don't specify, Registrar divides assets among members as prescribed.

  7. Returns

    • Annually, a general statement (audited) of receipts, expenditures, assets, and liabilities as of 31st December to be sent to Registrar. (Not 31st March) finance calender XXXXX

    • Statement of all changes in office-bearers and an up-to-date rulebook included.

    • Any rule alteration must be reported within 15 days.

    • Registrar/authorised officer may inspect all documents upon request but not more than 10 miles from registered office.


CHAPTER IV – REGULATIONS

  1. Power to Make Regulations

    • Appropriate Government may make regulations for the purposes of carrying out the Act.

    • Regulations may address registration process and fees, transfer of registration if office changes state, qualification for auditors, inspection conditions, and fees, and any prescribed matters.

  2. Publication of Regulations

    • Before being made, must be published in draft for general information, with a minimum of three months allowed for consideration.

    • Upon publication in the Official Gazette, regulations have force as if enacted.


CHAPTER V – PENALTIES AND PROCEDURE

  1. Failure to Submit Returns

    • Office-bearers or responsible members liable to fine up to Rs. 5, and in case of continued default, up to Rs. 5 per week, total not exceeding Rs. 50.

    • False entries/omissions in returns carry up to Rs. 500 fine.

  2. Supplying False Information

    • Providing false or misleading documents is punishable with fine up to Rs. 200.

  3. Cognizance of Offences

    • Only a Presidency Magistrate or Magistrate of 1st Class can try offences.

    • No court will take cognizance unless sanctioned by Registrar or, for section 32 offences, the recipient, within six months from the alleged offence.


 


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