Trade Union Registration

Trade Union Registration

Why is Trade Union registered?

As per The Indian Trade Unions Act, 1926, A Trade Union is:

“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, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions.”

There’s one more definition reflected by Dale Yoder

“A union is a continuing, long-term associations of employees formed and maintained for the specific purpose of advancing and protecting the interests of members in their working relationships.”

Required Number Of Members

As per Section 4(1) of Trade Union Act, 1926 any seven or more persons who want to form a Trade Union can apply for its registration under this Act.

The explanation behind the fixation of at least Seven Members is to encourage the formation of more Trade Unions with the goal that the Trade Unions would develop. In this manner for the arrangement of Trade Union

Benefits of Trade Union

There are few main boons to enjoy as a trade union:

  1. Unions can bargain for higher wages and help them counter and balance monopsony to overcome unfair wages.
  2. Trade Union can allow making productivity deals by including new working patterns to increase productivity.
  3. Trade Union has liberty to represent workers at employment tribunals.
  4. It can help build strong relationship between workmen and management which help in building effective communication.
  5. Higher the wage, more the workmen stays motivated which eventually boost productivity.
  6. It reduces inequality by being fair with divisions of wages, work and other necessary functions.

 

Procedure for Registration of Trade Union

Firstly the registrar is appointed as per Section 3 of the Trade Union Act, 1926 that empowers the appropriate Government to appoint a person to be registrar of Trade Unions.

Any seven or more persons who want to form trade union, can apply for its registration to the Registration of Trade Unions under Section 4 (1) of the Trade Unions Act, 1926. These applicants must be members of a trade union.

In order to check the multiplicity of trade unions, one school of thought has proposed the number of persons farming a trade union for the purposes of registration be reasonably increased to 10 per cent of employees of the unit, subject to minimum of seven persons employed therein This is expected to strengthen the trade union movement. The application for registration must be sent to the Registrar of Trade Unions in Form “A” as required by the Trade Union Act, 1926 under Section 5.

Every application is accompanied with all the documents as mentioned below

If a trade union has been in existence for more than one year prior to application of its registration, a financial statement showing its assets and liabilities prepared in the prescribed form has also to be submitted to the Registrar along with the applica­tion for registration.

Besides, every application must be accompanied with a copy of Rules of Trade union complying with the items as specified under Section 6 of the Trade Unions Act, 1926.

Documents Required For Registration Process

  1. The names, occupations and addresses of the members making the application
  2. The name of the trade union and the address of its head office, and
  3. The titles, names, ages, addresses and occupations of the office- bearers of the trade union.
  4. Copy of Deed
  5. Copy of Aadhaar card, passport, Voter ID, driving license or any such photo ID.
  6. PAN card
  7. Proof of the registered office address of the Trust (electricity/water bill or registration certificate)
  8. No Objection letter signed by the landowner

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