Registration of Trade Union

Rights and Liabilities of a Registered Trade Union

A registered Trade Union enjoys the following rights:

1. A registered trade union is a body corporate having a perpetual succession and a common seal. It acquires a legal personality separate from its members. It can acquire and hold properly and can enter into contracts in its own name. It can also sue and be sued in its own name.

2. A registered trade union has a right to maintain general funds and spend them for certain specified purposes.

3. A registered trade union can constitute a separate fund for political purposes.

4. The Act provides immunity to office bearers and members of a registered trade union from liability to punishment in respect of any agreement made between the members for the purpose of furthering its objects as specified in Section 15 unless the agreement is an agreement to commit an offence.

5. A registered trade union enjoys immunity from civil action in respect of any act done in contemplation or furtherance of a trade dispute to which a members of the trade union is a party union is party on the ground only that such act induces some other person to break a contract of employment, or that it is interference with the trade, business or employment of some other person to dispose off his capital or his labour as he wills.

6. A registered trade union can represent workmen to the Works Committee.

A registered trade union has the following liabilities:

1. To appoint only those persons as office bearers who do not suffer from the disqualification prescribed under the Act.

2. To maintain books of accounts and the list of members.

3. To keep books and the list open for inspection by members.

4. To submit annually to the Registrar of Trade Unions duly audited statements of receipts and expenditure and assets and liabilities.

5. To furnish correct information to persons intending to become members.

Cancellation of Registration of a Trade Union

A certificate of registration of a trade union may be withdrawn or cancelled by the Registrar on the following basis:

1. If the application of the trade union has not been verified in the prescribed manner.

2. If the registrar is satisfied that the certificate has been obtained by fraud or mistake

3. If the Registrar is satisfied that the trade union has

i. ceased to exist

ii. willfully and after notice form the Registrar contravened any provision of the Trade Unions Act, 1926

iii. allowed any role to continue in force which is inconsistent with any such provision

iv. rescinded any rule which ought to be there

Provided that not less than two months prior notice in writing, specifying the ground(s) on which it is proposed to withdraw or cancel the certificate, shall be given by the Registrar to the trade union before the certificate is withdrawn or cancelled.

Appeal against the order of cancellation

Any person aggrieved by the refusal of the Registrar to register a trade union or by the withdrawal or cancellation of certificate of registration may file an appeal before the Industrial Tribunal/ Labor Court in case of non-registration/cancellation of registration.

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