Rights and Liabilities of Registered Trade Unions

Trade unions are essential in safeguarding the rights and interests of workers in today’s workforce. When these unions are officially registered under labour laws, they gain certain rights and responsibilities. This article explores the rights and liabilities of registered trade unions, focusing on the legal framework provided by the Trade Unions Act, 1926.

Rights of Registered Trade Unions

Legal Personhood Rights

When a trade union is registered, it gains legal status, allowing it to:

Use a common seal in its name.
Own and manage property, both movable and immovable, under its registered name.
Enter into contracts in its name.
Sue or be sued under its registered name. These rights help the union to function effectively as a legal entity.

Spending General Funds

The Act requires trade unions to maintain general and political funds, with specific rules on how general funds can be used. These funds can be spent on:

Salaries, allowances, and expenses of union officers.
Administrative costs, including auditing.
Legal actions to protect members' rights against employers or others.
Managing trade disputes.
Compensating members for losses during trade disputes.
Providing allowances for death, illness, accidents, or unemployment.
Managing life insurance policies for members.
Offering educational, social, or religious benefits to members and their families.
Publishing materials related to employer-employee issues.
Contributing to worker welfare initiatives, within certain limits.
Other objectives approved by the government.

Establishing a Separate Political Fund

Trade unions cannot use general funds for political purposes. However, they can create a separate political fund for promoting members' civil and political interests, funded by voluntary contributions.

Changing the Union’s Name

A registered trade union can change its name if two-thirds of its members agree and the change complies with Section 25 of the Act.

Amalgamation of Trade Unions

Two or more registered trade unions can merge without splitting their funds, as long as half of the members from each union vote, and at least 60% agree to the merger.

Industrial Rights

Beyond the rights given by the Trade Unions Act, unions also have specific rights related to industrial matters:

Representing workers in dealings with employers, committees, and legal bodies.
Negotiating and settling disputes with employers.
Holding meetings, posting notices, and inspecting workplaces.
Receiving and responding to legal notices.
Attesting agreements and other formalities.
Securing legal assistance.
Collecting membership fees on employer premises.
Organizing demonstrations and strikes, within legal limits.

These rights empower trade unions to effectively represent and protect their members' interests.

Liabilities of Registered Trade Unions

Incorporating Essential Rules

A registered trade union must include specific provisions in its rules as outlined in Section 6 of the Trade Unions Act, 1926. These provisions must cover the union’s objectives, the permitted uses of general funds, criteria for admitting members, and the process for dissolving the union.

Forming an Executive Committee

Registered trade unions are required to form an executive committee as per Sections 21-A and 22 of the Act. These sections specify the composition and functions of the executive committee. Adhering to these requirements is crucial for the union’s registration, as non-compliance can lead to the Registrar rejecting the union’s application for registration.

Proper Use of General Funds

The union’s general funds must be used strictly for the purposes outlined in Section 15 of the Act. Any expenditure outside these specified objectives is not allowed.

Creating a Separate Political Fund

If a trade union wishes to engage in political activities, it must establish a separate fund, known as the political fund, as mandated by Section 16. This fund can only be used for promoting the civil and political interests of its members as specified in the Act.

Providing Access to Union Records

Registered trade unions are obligated to allow their office bearers and members to inspect the union’s account books and membership records according to the rules set by the union.

Informing the Registrar of Changes

Trade unions must notify the Registrar of significant changes, such as a change in the union’s name, amalgamation with other unions, changes in the head office’s address, or the union’s dissolution.

Submitting Annual Reports

Every registered trade union must submit an audited annual statement to the Registrar, detailing the union’s income, expenditure, assets, and liabilities for the year ending on December 31st. The format and details of the report are specified by the regulations.

Conclusion

Registered trade unions are crucial for protecting workers' rights and interests. Their legal rights empower them to negotiate, represent, and defend their members effectively. However, these rights come with responsibilities, including maintaining transparency, managing finances responsibly, and complying with labour laws. Striking a balance between the rights and duties of registered trade unions is key to their effective functioning and credibility in today's labour environment.