Thursday, 19 March 2015

PAYMENT OF WAGES ACT 1936



PAYMENT OF WAGES ACT  1936

BY

SMART LEARNING WAY


Definition of Wages

(a) Wages :-

‘Wages’ means all remuneration (whether by way of salary, allowances  or otherwise)  expressed in terms of money or capable of being  so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment. Simply  stated ‘wages’ means all remuneration due to any worker or employee if the terms of contract of employment are fulfilled. [Sec. 2(6)  of  the payment  of  wages  Act  1936 ]

(b)Wage-Period

Every person responsible for the payment of wages shall fix periods, known as wage-periods, in respect of which such wages shall be payable. A wage-period shall not exceed one month. (Sec 4.  of  the  payment  of  wages  act  1936)

(a)  Time  of  payment  of  wages.

Time  of  payment  of  wages  is  very  important  rule  for  payment  of  wages. Every  employees  would  like  to  obtain  their  wages  time  to  time. So.  Payment  of  wages  act  give  some  rules  for  payment  of  wages  in  some  fixed  time  are  given  below:

(i) Wages to be paid before 7th or 10th day :-

The wages of every person employed upon or in any railway, factory or industrial or other establishment upon or in which less than 1,000 persons are employed, shall be paid before the expiry of 7th day of the following wage-period. In case the number of workers exceeds 1,000, the wages shall be paid before the expiry of the 10th of the following wage-period. In the case of persons employed on a dock, wharf or jetty or in a mine, the balance of wages due on completion of the final tonnage account of the ship or wagons, loaded or unloaded, as the case may be, shall be paid before the expiry of the 7th day from the day of such completion.

(ii) Wages in case of termination of employment :-

           Where the employment of any person is terminated by or on behalf of the employer, the wages earned by him shall be paid before the expiry of the 2nd working day from the day on which his employment is terminated. Where the employment of any person in an establishment is terminated due to the closure of the establishment for any reason other than a weekly or other recognised holiday, the wages  earned by him shall  be paid before the expiry of the 2nd day from the day on which his employment is so terminated.

(iii) Exemption :-

          The State Government may, by general or special order, exempt the person responsible for the payment of wages from the operation of the above provisions in certain cases. 

(iv) Wages to be paid on a working day :-

            All payment of wages shall be made on a working day.

(b)   Evolution  of  concept  of  wages  in  India.  

       In  the  earlier  days,  the  imposition   of  fine  was  a  fairly  general  practice  in  perennial  factories  and  railways.  There  used  to  be  other  deductions  from  the  wages  paid  to  the  workers,  such  as  for  medical  treatment,  education,  interest  on  advances  of  the  workers’  own  wages,  charities,  and  religious  purposes  selected  by  the  employer.  An  important  feature  which  added  to  the  embarrassment  of  the  workers  at  various  places   was  comparatively  the  longer  period  in  respect  of  which  wages  were  paid.  There  was  no  uniformity  in  the  payment  of  wages.  Long  intervals  between  wage  payments  invariability  added  to  the  in  convenience  of  the  workers.
   
     The  Royal  Commission  on  Labour  in  its  report  (1931)  recommended,  among  other  things,  that  legislation  on  deduction  from  wages  and  fines  was  necessary  and  desirable.  The  commission  examined  the  delays  in  the  payment  of  wages  and  the  practice  of  deductions  from  the  wages  of  an  employed  person.  In  the  light  of  its  recommendations,  the  Government  of  India  introduced  a  Bill  seeking  to  regular  the  delays  and  deduction  in  the  payment  of  wages  to  industrial  and  plantation  labour.  The  Bill  was  passed  in  1936  and  the  Act  came  into  force  from  28th  March,  1937.  In  exercise  of  the  powers  conferred  under  the  Act,  the  Maharashtra  Government  framed  rules  known  as  the  Maharashtra Payment  of  Wages  Rules,1936.
   
      The  Act  is  in  three  parts.  Part  I  deals  with  the  regular  and  payment  of  wages  by  the  employer.  Part  2  specifies   the  heads  under  which  deduction  can  be  made  from  wages.  Part  3  provides  a  machinery  for  enforcing  specific  claim  arising  out  of  delayed  payments,  deduction  from  wages,  appeals,  etc.  It  is  a  self – contained  Act  and  provides  its  own  machinery  for  the  disposal  of  the  claims.  The  Act  contains  26  sections.

(a) What  are  the  rules for payment of  Wages ?

     ‘wages’ means all remuneration due to any worker or employee if the terms of contract of employment are fulfilled. [Sec. 2(6)  of  the payment  of  wages  Act,  1936 ]
      The  payment  of  wages  Act,  1936  give  some  Rules  for  payment  of  wages  are  given  below :

1) Responsibility for Payment of Wages (Sec.3) :-

           Every employer shall be responsible for the payment to persons employed by him of all wages required to be paid under the Payment of Wages Act. But in the case of persons employed (otherwise than by a contractor) in factories, industrial establishment or upon railway, the following persons shall also be responsible for the payment of wages: 

 (a) In factories, the person named as the manager;
(b) In industrial or other establishment, the person, if any, who is responsible to the employer for the supervision and control of the industrial or other establishment;
(c) Upon railways (otherwise than in factories), the person nominated by the railway administration in this behalf for the local area concerned (Sec. 3)

2) Fixation of Wage-Periods (Sec.4) :-
            Every person responsible for the payment of wages shall fix periods, known as wage-periods, in respect of which such wages shall be payable. A wage-period shall not exceed one month.

3) Time of Wage-Periods (Sec. 5) :-

 (i) Wages to be paid before 7th or 10th day :-

           The wages of every person employed upon or in any railway, factory or industrial or other establishment upon or in which less than 1,000 persons are employed, shall be paid before the expiry of 7th day of the following wage-period. In case the number of workers exceeds 1,000, the wages shall be paid before the expiry of the 10th of the following wage-period. In the case of persons employed on a dock, wharf or jetty or in a mine, the balance of wages due on completion of the final tonnage account of the ship or wagons, loaded or unloaded, as the case may be, shall be paid before the expiry of the 7th day from the day of such completion.

  (ii) Wages in case of termination of employment :-

           Where the employment of any person is terminated by or on behalf of the employer, the wages earned by him shall be paid before the expiry of the 2nd working day from the day on which his employment is terminated. Where the employment of any person in an establishment is terminated due to the closure of the establishment for any reason other than a weekly or other recognised holiday, the wages  earned by him shall  be paid before the expiry of the 2nd day from the day on which his employment is so terminated.

(iii) Exemption :-

          The State Government may, by general or special order, exempt the person responsible for the payment of wages from the operation of the above provisions in certain cases. 

(iv) Wages to be paid on a working day :-

            All payment of wages shall be made on a working day.

4) Medium of payment of wages (Sec. 6) :-

  All wages shall be paid in current coins or currency notes or both. Payment of wages in kind is not permitted. The process of payment of wages in cash is very cumbersome where the number of workers is very large. It is also risky where the sum involved is large and the factory or industrial establishment is situated at a remote place. In order to obviate these difficulties and save the worker from carrying cash on the pay day and mis-spending  it, the employer may after obtaining the written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account.

(b)  What  are  the  deductions  that  can  be  made  from  wages  of  employed  persons  as  states  in  the  payment  of  wages  act  1936?

 Deduction which may be made from wages (Sec. 7)  :-  

The wages of an employed person shall be paid to him without deductions of any kind except those authorized by or under the Payment of Wages Act, 1936.  the deductions from wages of an employed person may be of the following kinds only, namely;

  • Deductions for fines
  • Deductions for absence from duty.
  • Deductions for damage or loss.
  • Deductions for house accommodation
  • Deductions for amenities and services.
  • Deductions for recovery of advances or for adjustment of over payment of wages.
  • Deduction for recovery of loans made for the welfare of labour.
  • Deductions for recovery  of loans granted for house building.
  • Deductions for  payment of co-operative societies & insurance schemes.
  •   Deductions of income tax.
  •   Deductions made under  orders of court.
  •   Deduction for contributions to provident fund.
  •  Deduction for  constitutions  of a welfare fund for the employed persons & their family members.
  •   Deduction in respect of fees payable  for the membership of trade union.
  •   Deductions for  payment of insurance premia on fidelity guarantee bonds.
  •  Deductions for recovery of losses sustained by railway administration.
  •  Deduction  for  contributions  to  the  prime  minister’s national  relief  fund.
  •  Deduction for  contributions to any insurance schemes.

 1) Deductions for fines:-

(a) No fine shall be imposed on any employed person save in respect of such acts or omission on his part as the employer, with the Previous  approval of the State Government or of the prescribed authority, may have specified by a notice.
 
(b) The notice specifying the acts and omissions for which fines may be imposed shall be exhibited in the prescribed manner on the premises (and in case of persons employed upon a railway, at the prescribed place or places) in which the employment is carried on.

(c) No fine shall be imposed on an employed person until he has been given an opportunity of showing cause against the fine and has completed the age of 15 years.

(d) The total amount of fine which may be imposed in one wage period on any employed person shall not exceed 3 per cent of the wages payable to him in respect of that wage-period. Such a fine shall not be recovered from the employed person by installments or after the expiry of 60 days from the day on which it was imposed [ Sec. 8(6) ]


2) Deductions for absence from duty:-

         Deduction may be made on account of the absence of an employed person from duty from the place or places where, by the terms of his employment, he is required to work.  But the ratio between the amount of such deductions  
and the wages payable shall not exceed the ratio between the period of absence and total period within such wage-period. It has however been held in K.S.R.T. Employees’ Assn. Vs General Manager, K.S.R.T., (1985) that in a strike by workers in a public utility service like transport service, if employees absent for a part of the day without notice, deduction of full day’s wages would not be unjustified or illegal.

3) Deductions for Damage or Loss:-

          A deduction for damage to or loss of goods expressly entrusted to the employed person for custody or for loss of money for which he is required to accounts shall not   exceed the
  amount of the damage or loss caused to the employer by the neglect or default of the employed person. Same is the case as regards losses sustained by a railway administration on account of any rebates or refunds incorrectly granted by the employed person.

4) Deductions for services:-

         A deduction for house accommodation and such amenities and services supplied by the employer as have been authorised by the State Government shall not be made from the wages of an employed person, unless such services have  been accepted by him as a term of
  employment or otherwise. Deductions in respect of these services shall not exceed the value thereof. In case of deductions as regards services and amenities, the State Government may impose conditions.

5) Deductions for recovery of advances:-

         A deduction for recovery of an advance given to an employed person is subject to the following conditions viz., (i) recovery of an advance of money given before employment began shall be made from  the first payment of wages in respect of complete wage-period, but no recovery can be made of such advance given for travelling expenses:
 (ii) recovery of an advance of money given after employment began shall be subject to such conditions as the State Government may impose: (iii) recovery of advances of wages not already earned shall be subject to any rules may by the State Government in this regard. The State Government may regulate the extent to which such advances may be given and the installments by which they may be recovered.

6) Deductions for recovery of loans:-

          Deductions for loans granted for house-building  or other purposes and the interest due in respect thereof approved by the State Government shall be subject to any rules made by the State Government regulating the extent to which such loans may be granted and the rate of interest payable thereon.    

7) Deductions for payments to co-operative societies and insurance Schemes:-

        These deductions shall include (a) deductions for payments to co-operative societies approved by the State Government or to a scheme of insurance maintained by the Indian Post Office; and (b) deductions made with the written authrisation of the person employed for the payment of any premium of his life insurance policy to the Life Insurance Corporation (LIC) of India or for the purchase of securities of the Government of India or of  any State Government or for being deposited in any Post Office Saving Bank in furtherance of any saving scheme of any such Government.

8) Other Deductions:-

        The following deductions shall also be permitted under the Act: (a) deductions of income-tax payable by the employed person. (b) deductions required to be made by order of a Court or other authority competent to make such order [Sec. 7 (2) (h)]  (c) deductions for contributions to any insurance scheme framed by the Central Government for the benefit of its employees.
           
 Bibliography

 1.  Legal system in business  (Business Law , Company Law,  Industrial   Law )
       By :- P. saravanavel    S. sumathi
       Himalaya Publishing House

2.Industrial Jurisprudence and Labour    Legislation
            By :- A.M. Sarma
             Himalaya Publishing House
                       

Wednesday, 18 March 2015

TRADE UNION ACTS, 1926



TRADE UNION ACTS, 1926
BY
SMART LEARNING WAY 

The law relating to the registration of trade unions and certain other matters is contained in the trade union act, 1926. The act came into force  on 1st June, 1927.  The act was pass to regulate-

(a) conditions governing the registration of the trade unions, 
(b) obligations imposed upon a registered trade union
(c) rights and liabilities of registered trade unions. The act extends to the whole of India. The act was extended to Jammu & Kashmir by the central labour laws act, 1970.

DEFINITIONS

1 Appropriate Government (sec. 2): In relation to trade unions whose objects are not confined to one state, the “appropriate government ”. In relation to other trade unions, the appropriate government means the state government.

2 Trade disputes [sec 2(g)] : It means any disputes :
(a) between employers and workmen, or
(b) between workmen & work men
(c) between employers & employers, which is connected with
(i) the employment or non employment,
 (ii) the terms of employment,
(iii) the condition of labour of any person.

 “Workmen” means all persons employed in trade or industry whether or not in the employment of the employer with whom to trade disputes arises.

 3 Trade union [sec 2(h)] It means any combination, whether temporary or permanent, formed : 

(1)primarily for the purpose of regulating the relations (a) between workers & employers (2)for imposing restrictive conditions on the conduct of any trade unions. The act does not affect :

 (1) any arrangement between partners as to their own business
 (2) any arrangement between an employer & those employed by him as to such employment
 (3) any arrangement in consideration of the same of goodwill of the business or of instruction in any profession, trade or hand craft.

APPOINTMENT OF REGISTARS
A state govt. appoints a person to b the registrar of trade union of the state. It may also appoint as many additional & deputy registrars of trade unions as it thinks fit for the purpose of exercing & discharging the power and functions of the registrar. The state govt. also defines the local limits within which they shall exercise & discharge the powers & functions so specified [sec 3(2)]
Where an additional or deputy registrar exercises & discharges the powers & functions of a registrar in an area within which the registrar is deemed to be the registrar in relation to the trade union for the act [sec 3(5)].

REGISTRATIONS OF TRADE UNIONS(SEC 4-5)

Application for registration: Any 7 or more members of a trade union may, by subscribing their names to the rules of the trade union & by otherwise complying with the provisions of the act with respect to registration, apply for registration.

Any time after the date of the application, but before the registration of the trade union, some of the applicants who made the application may cease to be members of the trade union or may give notice in writing to the registrar dissociating themselves from the application. In such a case,

The application shall not be deemed to have become invalid merely by reason of this fact. But if the member of applicants ceasing to be members themselves from the application exceeds half of the total it is deemed to have become invalid. It must be accompanied by a copy of its rules & statement of the following 
(a) the names, occupations & address of the members making the application
  
(b) the name of the trade union & the address of his head office,
(c) the titles, names, ages, address, & occupations of the officers of the trade union.
  
Where a trade union has been in existence for more than 1 year before the making off an application for its registration, a general statement of its assets & liabilities prepared in the prescribed form has also to be delivered to the registrar, together with the application [sec5 (2)]

Cancellation of registration (sec 10): A certificate  of registration of a trade union may be withdrawn  or cancelled by the registrar: (a) on the application of thee trade union in the prescribed manner (b) if the registrar is satisfied that the trade union has (i) ceased to exist, (ii) willfully contravened any provisions of  the act (iii) allowed any rule to continue in force, which in inconsistent with any such provision, (iv) resigned any  rule which ought to be there.

RIGHTS  & LIABILITIES OF A REGISTERED TRADE UNION

1 Body corporate (sec 13): Every registered trade union is a body corporate by the name under which it is registered & has perpetual succession & a common seal   with power to acquire & hold both immovable property & to contract & can by the said name sue & be sued.

2  Separate fund for political purpose (sec 14): A registered trade union may constitute a separate funds, from contributions separately levied for or made to that fund, from which payments maybe made for the promotion of the civic & political interests of its members.

3) immunity from punishment for criminal conspiracy (sec.17):

An office-bearer or member of  a registered trade union shall not be liable to punishment under sec.120-B(2) of the Indian penal code, 1860 in respect of any agreement made between the members for the purpose of furthering any such object of the trade union on which general funds may be spent.
           
Where, for example, a strike is accompanied by violence, assault, intimidation, threat etc. This exemption is not available likewise a union leader is not entitled to claim immunity from punishment for breach of discipline.

4) Immunity from civil sits (sec.18) :
                 
A suit or other legal proceeding shall not be maintainable in any civil court against any trade union or any office-bearer or member thereof in respect of any act done in contemplation or furtherance of a trade dispute to which a member of the trade union is party. This protection is available only on the ground of employment, or that it is in interference with the trade, business or employment or some other person or with the right of some other person to dispose of his capital or his labour as he wills (sec.18(1)), e.g., Acts of violence or vandalism or any act of deliberate trespass.
              
 A registered trade union is not liable in any suit or other legal proceedings in any civil court in respect of any tortious act done in contemplation or furtherance of a trade dispute by an agent of the trade union if it is proved that such person acted without the knowledge of, or contrary to the express instructions given by, the executive of the trade union. 

5) Enforceability of agreements (sec.19):notwithstanding anything in any other law for the time being in force, an agreement between the members of a registered trade union shall not be void or voidable merely by reason of the fact any of the objects of the agreement is in restraint of trade.

6) Right to inspect books of trade union (sec.20): the account books of a registered trade union and the list of members thereof is open to inspection by an office-bearer or member f the trade union.The inspection may be done at such time as may be provided for in the rules of the trade union. The object of conferring this right on office-bearers and members is that they satisfy themselves as to the genuineness of members and of the accounts of the union.

7) Right of minors to be members(sec.21): subject to any rules of the trade union to the cotrary, any person who has attained the age of 15 years may be a member of a registered trade union and enjoy all the rights of a member.

Duties and liabilities of a registered trade union
The act imposes the following duties and liabilities on a registered trade union:

1)change of registered office(sec.12):if any change in the address of the head office of a trade union take place, notice of change must be given to the registrar in writing.

2)object on which general funds may be spent(sec.15): the general funds of a registered trade union shall be spent only on the following objects, namely;
a)The payment of salaries, allowances and expenses to office-bearers of the trade union;
b)The payment of expenses for the administration of the trade union, including audit of the accounts of the general funds of the trade union;
c) The expenses in prosecution or defense of any legal proceeding to which the trade union or any member thereof is a party, undertaken for the purpose of securing or protecting any rights of the trade union;
D) The conduct of trade disputes on behalf of the trade union or any members thereof;
E) The compensation of members for loss arising out of trade disputes;
F) Allowances to members or their dependants on account of death, old age, sickness, accident or unemployment of such members;
G) The issue of, or the undertaking of liability under, policies of assurance on the lives of members, or under policies insuring members against sickness, accident or unemployment;
H) The provision of educational, social or religious benefits for members ( including the payment of the expenses of funeral or religious ceremonies for deceases members) or for the dependants of members;
I)The upkeep of a periodical published mainly for the purpose of discussing questions affecting employees or workmen as such;
J) the payment of contributions to any cause intended to benefit workmen in general. The expenditure respect of such contributions in financial year shall not at anything during that year be in excess of 1/4th of the combined total of the gross income which has up to that time accrued to the general funds of the trade union during that year and of the balance at the credit of those funds at the commencement of that year;
K) subject to any conditions contained in the notification, any other object notified by the appropriate government in the office gazette.
  if the union funds are spent on any object other than those enumerated in sec. 15, the expenditure will be unlawful and ultra virus the act and the union can be restrained by injunction from applying its funds for any such object.

3) Constitution of a fund for political purposes (sec. 16): 

a registered trade union may constitute a separate fund from which payments may be made for the promotion of the civic and political interests of its members (sec.16). Such fund be used in furtherance of the following objects, viz;

A)the payment of any expenses incurred by a candidate or prospective candidate for election as a member of any legislative body constituted under the constitution or of any local authority; or

B)the holding of any meeting or the distribution of any literature or documents in support of any such candidate or prospective candidate, or

C)the maintenance of any person who is a member of any legislative body constituted under the constitution or of any local authority; or

E)the holding of political meeting of any kind, or the distribution of political literature or political documents of any kind(sec.16(2))

Note: expenditure for political purpose is in no case permitted out of the general funds. Not only this, even interest on investments of general fund will have to be credited to the general fund.

The condition for the creation of a political fund are as follows:
        i)            Such fund can be created only from contributions separately levied or made to that fund.
      ii)            Members must not be compelled to contribute to the fund.
    iii)            A member who does not contribute to the fund must not be excluded from any benefits of the trade union, or placed under any disability or disadvantage, directly or indirectly, as compared with other members of the trade union( except in relation to control or management of the political fund).
    iv)            Contribution to the political fund must not be made a condition for admission to the trade union.

4) Proportion of officers to be connected with the industry(sec.22):
     Not less than one-half of the total number of the office-bearers of every registered trade union must be persons actually engaged or employed in an industry with which the trade union is connected. The idea behind this rule is that persons actually engaged or employed in the industry may not have enough courage to from a trade union for fear of reprisal from the employers. The appropriate government may, however, by special or general order, exempt a trade union from the application of this provision.

5) Returns (sec.28): Every registered trade union shall annually to the registrar a general statement, audited in the prescribed manner, of all receipts and expenditure during the year ending on the 31st day of December. It shall also send statement showing all changes of office-bearers made by the trade union during the year, and a copy of the rules of the trade union corrected up to the date of the dispatch to the registrar. A copy of every alteration made in the rules of the registered trade union shall be sent to the registrar within 15 days of the making of the alternation.
For the purpose of examining the documents and statements sent to the registrar, the registrar, or any officers authorized by him. May at all reasonable times inspect the certificate of registration, account books, registers, and other documents relating to a trade union, at its registered office, or may require their production at a place which shall not be at a distance of more than 10 miles (16 kilometers) from the registered office of a trade union.

6)disqualification of office –bearers of trade union(sec.21-A):
    a person shall be disqualified for being chosen as, and for being, a member of the executive or any other office-bearer of a registered trade union if(i) he has not attained the age of 18 years; (ii) he has been convicted by a court in India of any offence involving  moral turpitude and sentenced to imprisonment; if a period of 5 years has elapsed since his release, the disqualifications are removed.

Rights & Liabilities of Trade Union

Objects on which general funds may be spent.
  • The general funds of a registered Trade Union shall not be spent on any other objects than the following, namely:-
A)The payment of salaries, allowances and expenses to [office-bearers] of the Trade Union;

B)The payment of expenses for the administration of the Trade Union , including audit of the accounts of the general funds of the Trade Union;

c) The prosecution or defence of any legal proceeding to which the Trade Union  or any member thereof is a party, when such prosecution or defence is undertaken for the purpose of securing or protecting any rights of the Trade Union  as such or any rights arising out of the relations of any member with his employer or with a person whom the member employs;

d) The conduct of trade disputes on behalf of the Trade Union  or any member thereof;

e) The compensation of members for loss arising out of  trade disputes;

f) Allowances to members or their dependents on account of death, old age, sickness, accidents or unemployment of such members;

g) The issue of , of the undertaking  of liability under, policies of assurance on the lives of members, or under policies insuring members against sickness, accident or unemployment;

h) The provisions of educational, social or religious benefits for members (including the payment of the expenses of funeral or religious ceremonies for deceased members) or for the dependents of members;

i)The upkeep of a periodical published mainly for the purpose of discussing questions affecting employers or workmen as such;

j) The payment, in furtherance of any objects on which the general funds of the Trade Union may be spent, of contributions to any cause intended to benefit workmen in general, provided that the expenditure in respect of such contributions in any financial year shall not at any time during that year be in excess of one-fourth of the combined total of the gross income which has up to that time accrued to the general funds of the Trade Union  during that year and of the balance at the credit of those funds at the commencement of that years; and

k) Subject to any conditions contained in the notification, any other  object notified by the [appropriate Government] in the Official Gazette.
  Constitution of a separate fund for political purpose

1.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 any of the objects specified in sub-section (2).

1.)The objects referred to in sub-section (1) are:-
a) the  payment of any expenses incurred, either directly indirectly, by a candidate or prospective candidate for election as a member of any legislative body constituted under [the constitution] or of any local authority, before, during, or after the election in connection with his candidature or election; or

b) The holding of any meeting or the distribution of any literature or documents in support of any such candidate or prospective candidate;            

c) The maintenance   of any person who is a member of any legislative body constituted under [the constitution] or of  any local authority; or

d) The registration of electors or the selection of a candidate for any legislative body constituted under [the constitution] or of any local authority; or

e) The holding of political meeting of any kind, or the distribution of political literature or political documents of  any kind.
  [(2A) In its application to the state of Jammu and Kashmir, references in sub-section (2) to any legislative body constituted under the constitution shall be construed as including references to the Legislature of that State.

(3) No member shall be compelled to contribute to the fund constituted under sub-section (1); 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 (expect 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.

Criminal conspiracy in Trade Disputes.
 No [office-bearer] or member of a member of a registered Trade Union shall be liable to punishment under sub-section (2) of section 120B of the Indian Penal Code (45 of 1860), in respect of any agreement made between the members for the purpose of furthering any such object of the Trade Union as is  specified in section 15, unless the agreement is an agreement to commit an offence.

Immunity from civil suit to certain cases –

(1) No suit or other legal proceeding shall be maintainable in any Civil Court against any registered Trade Union or any [Note: Inserted by Act No.51 of 1970] or member thereof in respect of any act done in contemplation or furtherance of a trade 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 in interference with the trade, business or employment of some other person or with the right of some other person to dispose of his capital of his labour as he wills.
  
(2) 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 a trade dispute by and 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.

Enforceability of agreements –

          Notwithstanding anything contained in any other law for the time being in force, an agreement between the members of a registered Trade Union shall not be void or violable merely by reason of the fact that any of the objects of the agreement is in restraint of trade:
Provided that nothing in this section shall enable any Civil Court to entertain any legal proceeding instituted for the express purpose of enforcing or recovering damages for the breach of any agreement concerning the conditions on
which any member of a Trade Union shall not sell their goods, transact business, work, employ or be employed.

Right to inspect books of Trade Union –

               The account books of a registered Trade Union and the list of members thereof shall be open to inspection by an [Note: Substituted by Trade Unions (Amendment) Act No.38 of 1964] or member of the Trade Union at such times as may be provided for in the rules of Trade Union.
 
Proportion of office-bearers to be concerned with the industry – 


            Not less than one half of the total number of the [Subs. by Trade Unions (Amendment) Act No.31 of 1964] of every registered Trade Union shall be persons actually engaged in an industry with which the Trade Union is convicted.
      Provided that the (appropriate Government) may, by special or general order declare that the provisions of this section shall not apply to any Trade Union or class of Trade Unions specified in the order.
Change of name –
            Any registered Trade Union may, with the consent of not less than two-thirds of the total number of its members and subject to the provisions of Section 25 change its name.

Amalgamation of Trade Union –
            Any two or more registered Trade Unions may become amalgamated together as one Trade Union with or without dissolution or division of the funds of such Trade Unions or either or any of them, provided that the votes of at least one-half of the members of each or every such Trade Union entitled to vote are recorded, and that at least sixty percent of the votes recorded are in favour of the proposal.

Notice of change of name or amalgamations –
            Notice in writing of every change of name and every amalgamation, signed, in the case of change of name, by the Secretary an by seven members of the Trade Union changing its name and in the case of an amalgamation by the Secretary and by seven members of each and every Trade Union which is a party thereto, shall be sent to the Registrar, and where head office of the amalgamated Trade Union is situated in a different (State), to the Registrar of such (State).

 REGISTRATION OF TRADE UNION

Appointment of Registrars

(1) [The appropriate Government] shall appoint a person to be the, Registrar of Trade union for [each State].

(2) The appropriate Government may appoint as many Additional and Deputy registrars of Trade unions as it thinks fit for the purpose of exercising and discharging, under the superintendence and direction of the registrar, such and define the local limits within which any such additional or Deputy registrar shall exercise  and discharge the powers and functions so specified.

 (3) Subject to the provision of any order under sub-section (2), where an additional or deputy registrar exercises and discharges the powers and functions of a registrar in an area within which the registered office of a Trade Union is situated, the additional or Deputy Registrar shall be deemed to be the registrar in relation to the Trade Union for the purposes of this Act.]

Mode of Registration

(1) 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 Act with respect to registration, apply for registration of the Trade Union under this Act:
provided that no Trade Union of workmen shall be registered unless at least ten per cent or one hundred of the workmen, whichever is less, engaged or employed in the establishment or industry with which it is connected are the members of such Trade Union on the date of application for registration:

Provided further that no workmen shall be registered unless at has on the date of making application not less than seven persons as its members, who are workmen engaged or employed in the establishment or industry with which it is connected.]

[(2) Where an application has been made under sub-section (1) for the 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.]

Application for registration
1.) Every application for registration of a Trade Union shall be made to the registrar, and shall be accompanied by a copy of the rules of the Trade Union and a statement of the following particulars, namely:-
a)    the names, occupations and addresses of the members making the application;
[(aa) in the case of a Trade Union of workmen, the names, occupations and addresses of the place of work of the members of the Trade Union making the application;]
b) The name of the Trade Union and the address of its head office; and
c)The titles, names, ages, addresses and occupations of  the [office bearers] of the Trade Union.
(2) Where a Trade Union has been in existence for more than one year before the marking of an application for its registration, there shall be delivered to the registrar, together with the application, a general statement of the assets and liabilities of the Trade Union prepared in such form and containing such particular as may be prescribed.

Provisions to be contained in the rules of  Trade Union

 A Trade Union shall not be entitles to registration under this Act, unless the executive thereof is constituted in accordance with the provisions of this Act, and the rules thereof provide for the following matters, namely:-
(a)The name of the Trade Union ;                         
(b) The whole of the objects for which the Trade Union  has been established;
(c) The whole of the purposes for which the general funds of the Trade Union  shall be applicable, all of which purposes shall be purposes to which such funds are lawfully applicable under this Act;
d) The maintenance of a list of the members of the Trade Union and adequate facilities for the inspection thereof by the [office-bearers] and members of the Trade union;
e) The admission of ordinary members who shall be persons actually engaged or employed in industry  with which the Trade Union is connected, and also the admission of the number of honorary or temporary members as [office-bearers] required under section 22 to form the executive of   the Trade Union;[(ee) the payment of a minimum subscription by members of the Trade Union which shall not be less than-
  1. One rupee per annum for rural workers;
  2. Three rupees per annum for workers in other unorganized sectors;
  3.  twelve rupees per annum for workers in any other case;]
                       [Ins. by Act 42 of 1960] The payment of a subscription by members of the Trade Union which shall be not less than twenty five naye paise per month per member;
(a) 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 members;
(b) The manner in which the member shall be amended, varied or rescinded;
(c) The manner in which the members of the executive and the other [Subs. by Trade Unions (Amendment) Act No.33 of 1954] of the Trade Union shall be appointed and removed;
(d) The safe custody of the funds of the Trade Union, and annual audit, in such manner as may be prescribed, of the account books by [Subs. by Trade Unions (Amendment) Act No.33 of 1954] and members of the Trade Union; and
(e) The manner in which the Trade Union may be dissolved.

7. Power to call for further particulars and to require alteration of name –
(1) The Registrar may call for further information for the purpose of satisfying himself that any application complies with the provisions of Sec; 5, or that the Trade Union is entitled to registration under Section 6, and may refuse to register the Trade Union until such information is supplied.
(2) If the name under which a Trade Union is proposed to be registered is identical with that by which any other existing Trade Union has been registered or, in the opinion of the Registrar, so nearly resemble such name as to be likely to deceive the public or the members of either Trade Union, the Registrar shall require the persons applying for registration to alter the name of the Trade Union stated in the application, and shall refuse to register the Union until such alteration has been made

8. Registration –
            The Registrar, on being satisfied that the Union has complied with all the requirements of this Act in regard to registration, shall register the Trade Union by entering in a register to be maintained in such form as may be prescribed, the particulars relating to the Trade Union contained in the statement accompanying the application for Registration.
            Notes:-
      This section is mandatory. The Registrar cannot refuse to register a Trade Union if the application for registration complies with the technical requirement as laid down in this Act.
      This Registrar has only to see if it fulfils the technical requirements and not whether it could be described as unlawful. If the applicant for registration complies with technical requirements of this Act, he has no option but to register the Trade Union, no matter what happens to it subsequently  even if it, in fact, proceeds counter to law or seeks to carry out its lawful objects in an unlawful way. (Inland Steam Navigation Workers Union In re.1635 Cal.57 : 63 Cal.565 : C. W. N. 91).
      An application for registration cannot be rejected on the ground that it is an attempt to revive an old, already unlawful, union under a new name (Ibid.).
      The functions of the Registrar are prescribed by this Act and his office is also created by this Act (Ibid.).

9. Certificate of Registration –
            The Registrar registering a Trade Union under Section 8, shall issue a certificate of registration in the prescribed form which shall be conclusive that the Trade Union has been duly registered under this Act.

10. Cancellation of Registration –
            A certificate of registration of a Trade Union may be withdrawn o cancelled by the Registrar -
(a) On the application of the Trade Union to be verified in such manner as may be prescribed, or
(b) If the Registrar is satisfied that the certificate has been obtained by fraud or mistake, or that the Trade Union has ceased to exist or has willfully and after notice from the Registrar contravened any provision of this Act or allowed any rule to continue in force which is inconsistent with any such provision, or has rescinded any rule providing for any matter, provision for which is required by Section 6:
      Provided that not less than two months previous notice in writing specifying the ground 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 otherwise than on the application of the Trade Union.

11. Appeal –
(1) Any person aggrieved by any refusal of the Registrar to register a Trade Union or by the withdrawal or cancellation of a certificate of registration may, within such period as maybeprescribed,appeal
(a) Where the head office of the Trade Union is situated within the limits of Presidency-town to the High Court, or
(b) Where the head office is situated in any outer area, to such Court, not inferior to the Court of an additional or assistant Judge of a principal Civil Court of original jurisdiction, as the [appropriate Government] may appoint in this behalf for that area.
(2) The Appellate Court may dismiss the appeal, or pass an order directing the Registrar to register the Union and to issue a certificate of registration under the provisions of Section 9 or setting aside the order for withdrawal or cancellation of the certificate, as the case may be, and the registrar shall comply with such order.
(3) For the purpose of an appeal under sub-section (1) an Appellate Court shall, so far as may be, follow the same procedure and have the same powers as it follows an has when trying a suit under the Code of Civil Procedure, 1908, and may direct by whom the whole or any part of  the costs of the appeal shall be paid an such costs shall be recovered as if they had been awarded in a suit under the said Code.
(4) In the event of the dismissal of an appeal by any Court appointed under clause (b) of sub-section (1), the person aggrieved shall have a right of appeal to the High Court and the High Court shall, for the purpose of such appeal, have all the powers of an Appellate Court under sub-sections (2) and (3) and the provisions of those sub-section shall apply accordingly.]

Cancellation of registration
            The registrar may withdraw or cancel the certificate or registration on the following
      -if the certificate has been obtained by fraud/mistake
      -if the Trade Union has ceased to exist
      -The Trade Union has willfully contravened any provisions of the act
      The trade union has allowed any rule to continue in force which is inconsistent with any  provisions of the act
      -Trade Union has rescinded any rule which ought to be there
      -Trade Union has on its own applied for withdrawal of cancellation
      Before the withdrawal the registrar shall give at least two months’ notice in written  specifying the ground on which it is proposed to take action in the absence of previous notice any proceeding for cancellation or withdrawal of registration is illegal.