Trade Unions Act, 1926 And Legal Framework

The central government, after consulting provincial governments,drew up a bill providing for the registration of trade unions,and introduced it in the assembly on 31 st August,1925. It was passed on 25th Match,1926, and Indian Trade Unions Act, 1926 was bought into force on 1st June, 1927. The Act extends to the whole country.

It was divided into 33 sections and contains 5 chapters. Certain acts do not apply to registered trade unions,namely:

  1. The societies Registration Act,1860.
  2. The Co-operative societies Act,1912.
  3. The companies Act,1956.

Objectives of the Act

The main object of the Act is:

  1. To provide for the registration of trade unions.
  2. To give registered trade unions a legal and corporate status.
  3. To regulate rights and liabilities of registered trade unions.

Definitions Under The Act

Appropriate Government [Sec. 2]: In relation to Trade Unions whose objects are not confined to one state ‘the appropriate Government’ is the Central Government. In relation to other Trade Unions, the ‘appropriate Government’ is the State Government.

1. Executive [Sec. 2(a)]:
 Executive means the body of which the management of the affairs of a Trade Union is entrusted.

2. Office-Bearer: It includes any member of the executive  thereof, but does not include an auditor.

3. Trade Dispute:
 A trade dispute means any dispute between the employers and workmen, the workmen and workmen and the employers and employers which is connected with the employment or non-employment, or the terms of employment, or the conditions of labour of any person. ‘Workmen’ mean all persons employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises.

4. Workmen: It includes all persons employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises.

5. Trade Union [Sec. 2(h)]: Trade Union means 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 for imposing restrictive conditions on the conduct of any trade or business and includes any federation of two or more Trade Unions.

Provided that this Act shall not affect –
(i) any agreement between partners as to their own business;
(ii) any agreement between an employer and those employed by him as to such employment; or
(iii) any agreement in consideration of the sale of the goodwill of a business or of instruction in any profession trade or handicraft.