Law and You > Labour Laws > The Industrial Relations Code, 2020 > Registration of Trade Unions under the Industrial Relations Code, 2020

Trade unions play a crucial role in advocating for workers’ rights and interests. They serve as collective voices for employees, enabling them to negotiate better wages, working conditions, and benefits. By uniting workers, trade unions empower individuals who might otherwise feel isolated in their workplaces, fostering a sense of solidarity and community. Historically, trade unions have been instrumental in achieving significant labour reforms. They have been at the forefront of movements that led to the establishment of the eight-hour workday, workplace safety regulations, and anti-discrimination policies. Through collective bargaining, unions negotiate contracts that establish fair pay and job security, providing members with a buffer against exploitation.

The need for trade unions remains vital. As the nature of work continues to evolve, unions can adapt by embracing new industries and advocating for the rights of all workers, including those in non-traditional employment. By focusing on issues like job security in an increasingly uncertain economy, unions can remain relevant and continue to protect workers’ rights. Trade unions are essential for promoting fair labor practices and enhancing workers’ quality of life. They provide a necessary counterbalance to corporate power and ensure that workers have a say in their workplaces. For a just and equitable labour environment, strengthening and supporting trade unions is imperative. Their ongoing evolution will be key to addressing the challenges of the future workforce.

According to Section 2(zl) the Industrial Relations Code, 2020 “Trade Union” means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workers and employers or between workers and workers, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more Trade Unions:

Registrar of Trade Unions:

Section 5 of the Industrial Relations Code, 2020 lays down provisions related to Registrar of Trade Union.

Appointment of Registrar of Trade Union:

According Section 5(1) of the Industrial Relations Code, 2020 the State Government may, by notification, appoint a person to be the Registrar of Trade Unions, and other persons as Additional Registrar of Trade Unions, Joint Registrar of Trade Unions and Deputy Registrar of Trade Unions, who shall exercise such powers and perform such duties of the Registrar as the State Government may, by notification, specify from time to time.

Jurisdiction of Registrar of Trade Union:

According Section 5(2) of the Industrial Relations Code, 2020 subject to the provisions of any order made by the State Government, where an Additional Registrar of Trade Unions or a Joint Registrar of Trade Unions or a Deputy Registrar of Trade Unions exercises the powers and performs the duties of the Registrar in an area within which the registered office of a Trade Union is situated, such Additional Registrar of Trade Unions or a Joint Registrar of Trade Unions or a Deputy Registrar of Trade Unions, as the case may be, shall be deemed to be the Registrar in relation to that Trade Union for the purposes of this Code.

Section 5 of the Industrial Relations Code, 2020 empowers the competent government to designate a qualified individual as Registrar of Trade Unions and other persons as Additional Registrar of Trade Unions, Joint Registrar of Trade Unions and Deputy Registrar of Trade Unions. Their powers and duties are specified by the State Government by notification in an area within which the registered office of a Trade Union is situated. The Registrar’s duties and functions are outlined in the Code.

Powers of the Registrar of Trade Unions:

• The Registrar has the authority to register trade unions that meet legal requirements. This includes assessing the application for compliance with relevant laws.
• The Registrar monitors the activities of registered unions to ensure they operate within the legal framework, adhering to established rules and guidelines.
• They can conduct inspections and audits of trade unions to verify compliance with the Trade Union Act and other relevant legislation.
• The Registrar may have the power to mediate disputes involving trade unions, their members, or employers, facilitating negotiations and settlements.
• The Registrar can initiate proceedings to dissolve a trade union if it is found to be operating unlawfully or contrary to its registration conditions.

Duties of the Registrar of Trade Unions:

• The Registrar has the duty to enforce compliance with trade union laws, taking necessary action against unions that violate regulations.
• The Registrar is responsible for keeping accurate and up-to-date records of all registered trade unions, including their constitutions, membership lists, and financial statements.
• They provide guidance to trade unions on compliance with the law and best practices in governance and administration.
• The Registrar may promote awareness of workers’ rights and the role of trade unions among the workforce and the general public.
• They are often required to prepare and submit reports to the government on the status and activities of trade unions within their jurisdiction.

Criteria of Registration of Trade Union:

Section 6 of the Industrial Relations Code, 2020 gives the criteria for registration of Trade Union.

Minimum Members Required to Form Trade Union:

According Section 6(1) of the Industrial Relations Code, 2020 any seven or more members of a Trade Union may, by subscribing their names to the rules of the Trade Union and by otherwise complying with the provisions of this Code with respect to registration, apply for registration of the Trade Union under this Code.

Minimum Members Required in Establishment for Registration:

According Section 6(2) of the Industrial Relations Code, 2020 no Trade Union of workers shall be registered unless at least ten per cent of the workers or one hundred workers, whichever is less, engaged or employed in the industrial establishment or industry with which it is connected are the members of such Trade Union on the date of making of application for registration.

Maintaining Number of Members during Process of Registration:

According Section 6(3) of the Industrial Relations Code, 2020 where an application has been made under sub-section (1) for registration of a Trade Union, such application shall not be deemed to have become invalid merely by reason of the fact that, at any time after the date of the application but before the registration of the Trade Union, some of the applicants, but not exceeding half of the total number of persons who made the application, have ceased to be members of the Trade Union or have given notice in writing to the Registrar dissociating themselves from the application.

Maintaining Number of Members after Registration:

According Section 6(4) of the Industrial Relations Code, 2020 a registered Trade Union of workers shall at all times continue to have not less than ten per cent of the workers or one hundred workers, whichever is less, subject to a minimum of seven, engaged or employed in an industrial establishment or industry with which it is connected, as its members

Registered Trade Union shall be a body incorporate by the registered name, having a common seal and perpetual succession with the power to hold property.

In Tirumala Tirupati Devasthanam v. Commissioner of Labour, (1995) Supp (3) SCC 653 case, the Supreme Court held that any group of employees of an industry establishment can be registered as a Trade Union under the Trade Unions Act, 1929, to regulate the relationship between them and their employers, or between employees themselves, or between employers of the industry establishment.

Constitution or Rules of Trade Union:

Section 7 of the Industrial Relations Code, 2020 deals with the Constitution or Rules of Trade Union. Following are the matters must be included in the rules of Trade Union:

1. The name of the Trade Union;
2. All the objects for which the Trade Union has been established;
3. All the purposes for which the general funds of the Trade Union shall be applicable;
4. The maintenance of a list of members of the Trade Union and adequate facilities for the inspection thereof by the office-bearers and members of the Trade Union;
5. The admission of ordinary members (irrespective of their craft or category) who shall be persons actually engaged or employed in the industrial establishment, undertaking or industry, or units, branches or offices of an industrial establishment, as the case may be, with which the Trade Union is connected. The membership may also be honorary or temporary as per provisions in the Code;
6. The payment of a subscription by members of the Trade Union from such members and others, as may be prescribed;
7. The conditions under which any member shall be entitled to any benefit assured by the rules and under which any fine or forfeiture may be imposed on any member;
8. The annual general body meeting of the members of the Trade Union, the business to be transacted at such meeting, including the election of office-bearers of the Trade Union;
9. The manner in which the members of the executive and the other office bearers of the Trade Union shall be elected once in a period of every three years and removed, and filling of casual vacancies;
10. The safe custody of the funds of the Trade Union, an annual audit, in such manner as may be prescribed, of the accounts thereof, and adequate facilities for the inspection of the account books by the office-bearers and members of the Trade Union;
11. The manner in which the rules shall be amended, varied or rescinded; and
12. The manner in which the Trade Union may be dissolved.

In M. T. Chandrasennan v N sukumaran, AIR 1947 SC 1789 case, the court held that the members of trade unions are members under Clause 6(ee). The payment of subscription by members to the trade union has been made compulsory under Clause 6 (ee) of the Act. The trade unions cannot refuse to receive subscription from its members.

In Bokajan Cement Corporation Employees Union v. Cement Corporation of India, 10 November, 2003 case, the Apex Court held that members of the union does not automatically cease upon termination of the employment.

Application for Registration of Trade Union:

Section 8 of the Industrial Relations Code, 2020 deals with the application for registration of Trade Union.

Documents Required during Application for Registration of Trade Union:

According to Clause 8(1) of the Code, every application for registration of a Trade Union shall be made to the Registrar electronically or otherwise and be accompanied by—

1. A declaration to be made by an affidavit in such form and manner as may be prescribed;
2. A copy of the rules of the Trade Union together with a copy of the resolution by the members of the Trade Union adopting such rules;
3. A copy of the resolution adopted by the members of the Trade Union authorising the applicants to make an application for registration; and
4. In the case of a Trade Union, being a federation or a central organisation of Trade Unions, a copy of the resolution adopted by the members of each of the member Trade Unions, meeting separately, agreeing to constitute a federation or a central organisation of Trade Unions.

Provision for Trade Union in Existence for More than 1 Year at the Time of Application for Registration:

According to Clause 8(2) of the Code,if a Trade Union has been in existence for more than one year before the making of an application for its registration, then, a general statement of the assets and liabilities of the Trade Union prepared in such form and containing such particulars as may be prescribed should accompany the application for the registration.

Power of Registrar to Call for Further Information:

According to Clause 8(3) of the Code, the Registrar may call for further information for the purpose of satisfying himself that the application complies with the provisions of this Code and the Trade Union is entitled for registration under this Code, and may refuse to register the Trade Union until such information is furnished.

Trade Union Should Have Unique Distinct Name:

According to Clause 8(4) of the Code, if the name under which the Trade Union is proposed to be registered is identical with that of an existing registered Trade Union or in the opinion of the Registrar so nearly resembles the name of an existing Trade Union that such name is likely to deceive the public or the members of either Trade Union, the Registrar shall require the persons applying for altering the name of the Trade Union and shall refuse to register the Trade Union until such alteration has been made.

Registration of Trade Union:

Section 9 of the Industrial Relations Code, 2020 deals with the registration of Trade Union.

Entry of Name of Trade Union in the Register:

According to Section 9(1) of the Code, when the Registrar is satisfied that the Trade Union has complied with all of the conditions of this Chapter about registration, he or she shall register the Trade Union by entering the particulars relating to the Trade Union included in the statement accompanying the application for registration in a register to be maintained in such form as may be required.

Issue of Certificate of Registration by the Registrar:

According to Section 9(2) of the Code, when the Registrar issues an order for the registration of a Trade Union, he shall issue to the applicant Trade Union a certificate of registration in such form as may be required. The certificate of registration shall be conclusive evidence that the Trade Union has been registered under this Code.

Entry of Particulars of Trade Union:

According to Section 9(3) of the Code, when the Registrar has issued a certificate of registration to a Trade Union, he shall enter the name and other particulars of the Trade Union in a register maintained in this behalf in such form as may be prescribed.

Submission of Constitution of Trade Union to the Registrar:

According to Section 9(4) of the Code, every Trade Union which is registered under the Trade Unions Act, 1926 that had valid registration immediately before the beginning of this Code shall be regarded to have been registered under this Code only if, that Trade Union shall submit with the Registrar a statement stating the constitution of the executive of the Trade Union is in line with this Code, along with the rules of the Trade Union revised by Clause 7, and the Registrar shall change his record.

In Inland Steam Navigation Workers Union (in re), (1936) IC 378 case, where the workers’ union requested registration through an application, but the Registrar denied it, considering it unlawful based on its object to be for all practical purposes. The Registrar’s duties, according to Justice Derbyshire, were to assess the application and the objects for which the union was established. If such purposes were those specified in the Act, if they did not deviate from those specified in the Act, and if all of the requirements of the Act and the rules enacted thereunder were met, it was his obligation, in my opinion, to register the union.

In IFFCO, Phulpur Karmachari Sangh v. Registrar of Trade Unions, (1992) II LLJ 239 (All) case, the Allahabad High Court held that the certificate of registration remains valid until the registration is terminated.

In Telco Workers Union v. the State of Jharkhand (2015) II LLJ 448 (Jhar) case, the high court held that there is no provision in the Trade Unions Act, 1926 that gives the Registrar of Trade Unions the authority to handle the intense dispute between the parties. The Registrar has no authority under the Act to hear private members of Trade Unions’ grievances; nonetheless, a complaint may serve as a source of information for the Registrar in forming an opinion for issuing a show-cause notice under Clause 9 of the Act.

In ONGC Workmen’s Association v. the State of W.B., (1988) Lab. IC 555 at 560 case, the Court held that any order passed under Clause 9 by the Registrar must be administrative in nature. The Registrar is not deemed to be a quasi-judicial authority to decide any disputed question of fact or law. He has no authority to ask for any of the parties to lead evidence and to give an opportunity to the other party to cross-examine any witness.

Cancellation of Registration:

Cancellation of Registration by Registrar:

The Registrar may withdraw or cancel a Trade Union’s certificate of registration as per Section 9(5) of Code under following circumstances:

1. On the Trade Union’s application verified in the manner prescribed;
2. On information received by him regarding the Trade Union’s violation of the provisions of this Code or the rules made thereunder, or its constitution or rules;
3. If he is satisfied that the members in a Trade Union fall below ten percent of total workers or one hundred workers, whichever is less, only when the Registrar gives the Trade Union not less than sixty days prior written notice outlining the grounds on which it is planned to revoke the Trade Union’s certificate of registration before the certificate of registration is cancelled otherwise than on the Trade Union’s application.

The Registrar must give a previous notice of not less than sixty days in writing specifying the grounds on which it is proposed to cancel the certificate of registration of a Trade Union before the certificate of registration is cancelled otherwise than on the application of the Trade Union.

Cancellation of Registration of Trade Union by Order of Tribunal:

According to Section 9(6) of the Code, the Registrar shall cancel a Trade Union’s registration certificate where a Tribunal has ordered the cancellation of such Trade Union’s registration.

Registrar Must Record Reasons of Cancellation of Registration of Trade Union:

According to Section 9(7) of the Code, when cancelling a Trade Union’s certificate of registration, the Registrar must record the reasons for doing so and notify the Trade Union in writing.

Appeal against Non-Registration or Cancellation of Registration:

According to Section 10 of the Code, any person who is dissatisfied with the Registrar’s rejection to grant registration to a trade union or the cancellation of a certificate of registration may file an appeal with the Tribunal within the time limit allowed. If the appellant satisfies the Tribunal that the delay was caused by a sufficient reason or unavoidable circumstances, the Tribunal may entertain the appeal after the limitation set for preferring the appeal under this sub-clause.

After hearing the parties, the Tribunal may dismiss the appeal or make an order instructing the Registrar to register the trade union and issue a certificate of registration, or set aside the order of revocation of the certificate of registration. The Tribunal must send a copy of the order to the Registrar.

Communication to Trade Union and Change in its Registration Particulars:

All Communication to Trade Union to Head Office Address:

According to Section 11(1) of the Code, all communications and notices to a registered Trade Union shall be sent, in such manner as may be prescribed, to the address of the head office of the Trade Union as entered in the register maintained by the Registrar.

Information of Fall in Number of Members of Trade Union to Registrar:

According to Section 11(2) of the Code, the Trade Union shall inform the Registrar if the members of such Trade Union falls below ten per cent of total workers or one hundred workers, whichever is less.

Information of Change of Particulars of Trade Union to Registrar:

According to Section 11(3) of the Code, the Trade Union shall inform the Registrar of any change in the particulars given by it in its application for registration and in its constitution or rules, in such manner as may be prescribed.

Legal Existence of Trade Union as Juristic Person:

According to Section 12 of the Code, every registered Trade Union shall be a body corporate by the name under which it is registered, and shall have perpetual succession and a common seal with power to acquire and hold both movable and immovable property and to contract, and shall by the said name sue and be sued.

Certain Acts not to Apply to Registered Trade Unions:

According to Section 13 of the Code, the provisions of the following Acts, namely:—

1. the Societies Registration Act, 1860;
2. the Co-operative Societies Act, 1912;
3. the Multi-State Co-operative Societies Act, 2002;
4. the Companies Act, 2013; and
5. any other corresponding law relating to co-operative societies for the time being in force in any State,

shall not apply to any registered Trade Union and the registration of any such Trade Union under any of the aforementioned Acts shall be void.

Recognition of Negotiating Union or Negotiating Council:

Section 14 of the Code deals with recognition of negotiating union or negotiating council.

Recognition of Negotiating Union:

According to Section 14(1) of the Code, there shall be a negotiating union or a negotiating council, as the case may be, in an industrial establishment having registered Trade Union for negotiating with the employer of the industrial establishment, on such matters as may be prescribed.

Recognition of Negotiating Union where only One Trade Union is Registered:

According to Section 14(2) of the Code, where only one Trade Union of workers registered under the provisions of this Chapter is functioning in an industrial establishment, then, the employer of such industrial establishment shall, subject to such criteria as may be prescribed, recognise such Trade Union as sole negotiating union of the workers.

Recognition of Negotiating Union when More than One Trade Union are Registered:

According to Section 14(3) of the Code, if more than one Trade Union of workers registered under this Code are functioning in an industrial establishment, then, the Trade Union having fifty-one per cent. or more workers on the muster roll of that industrial establishment, verified in such manner as may be prescribed, supporting that Trade Union shall be recognised by the employer of the industrial establishment, as the sole negotiating union of the workers.

Formation of Negotiating Council and Status of its Settlement:

According to Section 14(4) of the Code, if more than one Trade Union of workers registered under this Code are functioning in an industrial establishment, and no such Trade Union has fifty-one per cent. or more of workers on the muster roll of that industrial establishment, verified in such manner as may be prescribed, supporting that Trade union, then, there shall be constituted by the employer of the industrial establishment, a negotiating council for negotiation on the matters referred to in sub-section (1), consisting of the representatives of such registered Trade Unions which have the support of not less than twenty per cent of the total workers on the muster roll of that industrial establishment so verified and such representation shall be of one representative for each twenty per cent and for the remainder after calculating the membership on each twenty per cent.

According to Section 14(5) of the Code, where any negotiation on the matters referred to in sub-section (1) is held between an employer and a negotiating council constituted under sub-section (4), consequent upon such negotiation, any agreement is said to be reached, if it is agreed by the majority of the representatives of the Trade Unions in such negotiating council.

According to Section 14(6) of the Code, any recognition made under sub-section (2) or sub-section (3) or the negotiating council constituted under sub-section (4) shall be valid for three years from the date of recognition or constitution or such further period not exceeding five years, in total, as may be mutually decided by the employer and the Trade Union, as the case may be.

Support to Negotiating Union or Negotiating Council:

According to Section 14(7) of the Code, the facilities to be provided by industrial establishment to a negotiating union or negotiating council shall be such as may be prescribed.

Objects of General Fund, Composition of Separate Fund and Membership Fee of Trade Union:

Section 15 of the Industrial Relations Code, 2020 deals with the objects of general fund, composition of separate fund and membership fee of Trade Union.

Spending Only on Objects of Trade Union:

According to Section 15(1) of the Code, the general funds of a registered Trade Union shall not be spent on any objects other than such objects as may be prescribed.

Setting of Separate Fund for Civic and Political Interest:

According to Section 15(2) of the Code, a registered Trade Union may constitute a separate fund, from contributions separately levied for or made to that fund, from which payments may be made, for the promotion of the civic and political interests of its members, in furtherance of such objects as may be prescribed.

No Compulsion for Contribution to Separate Fund under Section 15(2):

According to Section 15(3) of the Code, no member shall be compelled to contribute to the fund constituted under sub-section (2) and a member who does not contribute to the said fund shall not be excluded from any benefits of the Trade Union, or placed in any respect either directly or indirectly under any disability or at any disadvantage as compared with other members of the Trade Union (except in relation to the control or management of the said fund) by reason of his not contributing to the said fund; and contribution to the said fund shall not be made a condition for admission to the Trade Union.

Subscription by Members must be as Prescribed:

According to Section 15(4) of the Code, the subscriptions payable by the members of the Trade Union shall be such as may be prescribed.

Recognition of Trade Unions at Central and State Level:

Recognition at Central Level:

According to Section 27(1) of the Code, where the Central Government is of the opinion that it is necessary or expedient that a Trade Union or federation of Trade Unions is to be recognised as Central Trade Union at the Central level, it may recognise such Trade Union or federation of Trade Unions as Central Trade Union in such manner and for such purpose, as may be prescribed, and if any dispute arises in relation to such recognition, it shall be decided by such authority in such manner as may be prescribed by the Central Government.

Recognition at State Level:

According to Section 27(2) of the Code, where the State Government is of the opinion that it is necessary or expedient that a Trade Union or federation of Trade Unions is to be recognised as State Trade Union at the State level, it may recognise such Trade Union or federation of Trade Unions as State Trade Union in such manner and for such purpose, as may be prescribed, and if any dispute arises in relation to such recognition, it shall be decided by such authority in such manner as may be prescribed by the State Government.

Civil and Criminal Immunity to Trade Union:

Immunity to Trade Union from Civil Liability:

Section 16 of the Code, confers immunity from civil proceedings in certain cases to a trade union or its office bears or members. In general, a person is liable in torts for inducing another person to breach his contract of employment or for interfering with the trade or business of another. However, a trade union, its officers, and its members are immune from this liability provided that such a lawful inducement is in contemplation or furtherance of a trade dispute.

According to Section 16(1) of the Code, no suit or other legal proceeding shall be maintainable in any civil court against any registered Trade Union or any office-bearer or member thereof in respect of any act done in contemplation or furtherance of an industrial dispute to which a member of the Trade Union is a party on the ground only that such act induces some other person to break a contract of employment or that it is an interference with the trade, business, or employment of some other person or with the right of some other person to dispose of his capital or of his labour as he wills.

According to Section 16(2) of the Code, a registered Trade Union shall not be liable in any suit or other legal proceeding in any civil court in respect of any tortuous act done in contemplation or furtherance of an industrial dispute by an agent of the Trade Union if it is proved that such person acted without the knowledge of, or contrary to express instructions given by, the executive of the Trade Union.

In P Mukundan v. Mohan Kandy Pavithran, (1992) IILLJ 160 Ker case, it was held that strike per se is not an actionable wrong. Further, it was held that the trade union, its officers, and its members are immune against legal proceedings linked with the strike of workmen by the provisions of section 18 of the Trade Union Act, 1926.

In Rohtas Industries Staff Union v. State of Bihar, AIR 1963 Pat 170 case, it was held that employers do not have the right to claim damages against the employee participating in an illegal strike and thereby causing loss of production and business.

In Simpson & Group Companies Workers & Staff Union v. Amco Batteries Ltd, 1991 (61) FLR 708  case, the Karnataka High Court held that physical obstruction of movement of management officials, contractors, goods, or vehicles carrying raw materials, is not a trade union right or a fundamental right under art 19. Immunity under section 18 of the Trade Union Act, 1926 cannot be claimed for such activities. Right to picket is a very intangible right and it extends only up to the right of free movement of others. The methods of persuasion are limited to oral and visual and do not include physical obstruction of vehicles or persons.

Immunity to Trade Union from Criminal Liability:

Section 17 of the Code, exempts registered trade union officers from prosecution for criminal conspiracy. According to English law, a conspiracy is “an agreement between two or more persons to carry out an unlawful act or an authorized act in an unlawful manner.” Section 120-A of the Indian Penal Code, 1860, (Section )imposes penalties for criminal conspiracy.

A registered trade union is granted immunity under the Code. This immunity is only applicable to legal agreements made by a trade union’s members for the stimulation of legitimate objects of a trade union, so it is only partially available. One right given to registered trade unions to help them settle trade disputes is the right to call for a strike and try to get their members to join. All acts that give rise to civil lawsuits are considered illegal acts.

Conclusion:

The registration of trade unions under the Industrial Relations Code, 2020 is a fundamental step in formalizing the rights and activities of workers’ organizations. This Code provides a legal framework that ensures trade unions can operate effectively while protecting their members’ interests. By registering, trade unions gain recognition, legitimacy, and the ability to engage in collective bargaining, thereby enhancing their bargaining power with employers. The registration process not only establishes a union’s existence but also imposes a degree of accountability and transparency, requiring unions to adhere to specified regulations and maintain accurate records. This fosters trust among members and creates a sense of responsibility in managing the union’s affairs.

However, challenges remain, including ensuring that unions comply with the Code and adapting to the changing landscape of work, particularly with the rise of gig economies and non-traditional employment. Ongoing support and awareness are essential to empower unions in navigating these challenges.

Thus, the registration of trade unions under the Code is a critical mechanism for protecting workers’ rights and promoting fair labour practices. It reinforces the importance of collective action in the workforce, ensuring that workers can advocate for their rights and interests in a structured and legally recognized manner. Strengthening this framework will be vital for the future of labour relations in an evolving economic environment.

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