Registration Of Tus.pptx

Registration of Trade Unions -Monica Rani Visiting Faculty

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TU Act provides for registration is voluntary.

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Registration grants the TU legal status of a body corporate.

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The Act provides with certain benefits and privileges to be sought if the TU gets itself registered.

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Though, it is up to the TU to get itself registered under the Act or not. Whereas, in some cases the TU is not allowed registration under the Act, like association of civil servants.

Registration and Recognition 

Registration does not guarantee recognition of the TU by the concerned employer.

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Recognition is dealt with by different set of provisions under State enactments/guidelines (Code of Discipline).

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Recognition is not provided for under the central legislation i.e. TU Act.

Legal Status of a registered TU 

Every registered TU is a body corporate by the name it is registered (Section 13). Accordingly, it has certain benefits as a body corporate, which are: 

Perpetual succession

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Common seal

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Power to sue and be sued in its own name

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Power to acquire and hold property

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An entity distinct from its members

Benefits and Privileges under the TU Act 

A registered TU has been given immunity from prosecution for criminal conspiracy and immunity from civil action as provided under Sections 17 and 18 of the Act respectively.

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An agreement in restraint of trade shall not be void or voidable between the members of the registered TU only because the objects of the agreement are in restraint of trade as per Section 19.

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After registration no other evidence is required to prove that the trade union is a trade union. (Section 9)

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The rules and other documents of a registered TU become public documents maintained at public office. (Section 6(1) and Regulation 17 of the Central Trade Union Regulation, 1938)

Benefits and Privileges under the TU Act 

Members and office-bearers of a TU can inspect the account books of the TU and list of members as per the rules of the TU. (Section 20)

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Any person above age of 15 years may be a member of a TU and enjoy the benefits of a member and execute all documents and receipts needed to be executed. (Section 21)

Funds to be created The TUs have right to constitute two types of funds for distinct purposes: General funds (Section 15) for : 

payment of salary,

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allowances to the office bearers,

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expenses of administration,

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upkeep of periodical published regarding issues of concern for the members,

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prosecution or defence of any legal proceedings to which the TU or its members are party,

General funds 

conduct of trade dispute,

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compensation for loss arising out of trade dispute,

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allowances to dependents on account of death, infirmity, illness, etc. of such member,

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insurance of members, or

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any purpose intended to benefit workmen in general.

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Such expenditure must not be beyond one-fourth of the gross fund accrued by that time and any condition contained in notification in Official Gazzette.

Political Fund (Section 16) Separate fund created from contribution specifically levied for and kept for this fund for civic and political interests of its members: 

Payment of any expense incurred for a member of a legislative or local body,

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holding any meeting or distribution of any literature or documents in support of any candidate,

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The maintenance of any person elected as a member of a legislative or local body,

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Registration of electors or selection of a candidate, or

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Holding of political meeting or distribution of political literature or documents,

Contribution to this fund would not be compulsory or would be a pre-requisite for admission to the TU. Non-contribution to this fund must not amount to any disability on such member.

Non-application of Some Laws Non-application of following Acts regarding TUs (Section 14): 

Society Registration Act, 1860

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The Co-operative Societies Act, 1912

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The Companies Act, 1956 (The Trade Union Act needs amendment in the name of this Act as per the Companies Act, 2013)

Mode of Registration (Section 4) 

Any seven or more members of a TU may apply for registration of the TU:

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By subscribing their names to the rules of the TU, and

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By complying with the provisions of the TU Act regarding registration.

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Either 10 percent/ 100 workmen (the lesser number) engaged or employed in the establishment or industry with which the TU is connected must be member of the TU on the date of such application.

Mode of Registration (Section 4) 

Minimum number of seven workmen must be member of the TU, being employed or engaged with the establishment or industry.

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The registration must not invalidated only for the reason that less than half of the applicants have ceased to be members of the TU or sent a notice to the Registrar disassociating themselves from such application. [Section 4(2)]

The Tamil Nadu Non-Gazetted Government Officers’ Union, Madras v The Registrar of Trade Unions AIR 1962 Mad. 234 

The TU was a Service Association recognised by Government and its membership was open to all non-gazetted govt. officers employed in the Government of Madras, except the Executive Officers of the Police and Prison Departments and the last grade Government servants.

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Members of the TU could be Sub Magistrates of Judiciary, Tahsildars, Officers in Treasuries and Sub Treasuries of Civil Courts, Tahsildars empowered to enforce tax-machinery, and officials of the Home Department. Other members could be workers working in PSUs or working with welfare departments.

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It applied for registration to the Registrar of the TUs, which was rejected.

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The appeal was also rejected by the Civil Court and further appeal was made to the Madras High Court.

The Tamil Nadu Non-Gazetted Government Officers’ Union, Madras v The Registrar of Trade Unions AIR 1962 Mad. 234 The Court observed that: 

Civil service has constitutional safeguards.

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A strike, the acknowledged weapon of TU, must not be considered a normal feature of the relationship between the State and its civil servants, at least with regard to essential state functions.

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The objects of the TU were ameliorative and benevolent and not for the purpose of regulating the relationship between the workmen and employers i.e. State in this case. The objects were not related to collective bargaining.

Regal/Sovereign Functions 

The Court referred to State of Bombay v Hospital Mazdoor Sabha (AIR 1960 SC 610) and Nagpur Corporation v Its Employees (AIR 1960 SC 675) and stated that :

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Regal functions are functions of the State.

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These are; legislative power, administration of laws and exercise of the judicial power.

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The Legislature could not have been contemplating to bring the regal functions within the scope of the definition “industry” and conferring jurisdiction on the industrial courts to decide such disputes.

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The Tamil Nadu Non-Gazetted Government Officers’ Union, Madras v The Registrar of Trade Unions AIR 1962 Mad. 234 

The Court observed that employees working with PSUs or corporation, industrial in character, could be termed as “workmen” and could form TU to take up their disputes with their employees. (State of Bombay v Hospital Mazdoor Sabha)

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There was ambiguity regarding cases of employees of welfare departments. [Bangalore Water Supply and Sewerage Board v A. Rajappa AIR 1978 SC 548) was not decided by then.]

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But, the High Court of Madras was certain that civil servants performing regal functions of the State could not form trade union under the Act.

The Tamil Nadu Non-Gazetted Government Officers’ Union, Madras v The Registrar of Trade Unions AIR 1962 Mad. 234 

Collective Bargaining, a right granted to TUs, applies to contractual relationship between employer and employee.

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Reference was made to UK law regarding treatment of civil servants as workmen but the Court did not allow similar interpretation to the Workmen.

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The civil servants had safeguards under Article 311 against penalties like dismissal, removal, reduction in rank, etc.

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Article 310 stated that a civil servant could hold his/her office during the pleasure of the Head of the Union or the State.

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In such case application of the concept of collective bargaining and TU Act was held as wholly irrelevant.

Registrar of TUs v M Mariswamy 1973 ILR 1387 (Mysore) 

The Registrar in this case withdrew the registration granted under Section 8 of the Act stating that the organisation with which the members of the TU were working was neither a trade nor an industry under the ID Act and the registration was granted by mistake.

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The Court held that the Registrar could cancel or withdraw the Certificate of Registration only if the TU had obtained it by fraud or mistake not if the Registrar had granted in mistakenly.

Registrar of TUs v M Mariswamy 1973 ILR 1387 (Mysore) 

The workers who had formed the Union, i.e. Mysore State Employees Provident Fund Employees Union were working with Provident Fund Organisation, and it was held as a part of activity of the industry and establishments similar to them.

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The Court referred to Employees Provident Funds Act, 1952 and observed that the main function of the Organisation was to provide financial security to the employees. Its activities resulted in material services to the concerned members of the society, i.e. employees.

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It further held that the Organisation discharges a part of the function of the employers.

Registrar of TUs v M Mariswamy 1973 ILR 1387 (Mysore) 

The Act applies to every establishment which is a factory employing 20 or more persons or any other establishment if it employed 25 or more persons or other such establishments if the Central Govt. notified so.

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The Court further held that the Organisation was a part of the activity of the industries and other similar establishments.

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As the Organisation was held as an industries people working with it were termed as workmen as per the Act and the TU was held a valid TU according to Section 2(h) to regulate the relationship between the employer and the workmen.