Q. DEFINE TRADE UNION AND RIGHTS AND LIABILITIES.

Definition
SECTION 2(h) "trade union" means 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:

PROVIDED that this Act shall not affect (i) any agreement between partners as to their own
business;
(ii) any agreement between an employer and those
employed by him as to such employment; or
(iii) any agreement in consideration of the sale of the
goodwill of a business or of instruction in any profession,
trade or handicraft
LIABILITIES OF TRADE UNION
The Act imposes duties and liabilities on registered trade
unions. They are:
a. CHANGE OF REGISTERED OFFICE:

If the address is changed, notice in writing must be

given to the Registrar within fourteen days of the change.
The change shall be recorded in the Register.

b. CHANGE OF NAME:

Any registered trade union may change its name with

the consent of not less than two third of the total number
of its members and subject to the provisions of section 25.

c) DISBURSEMENT OF THE TRADE UNIONS FUNDS:

The registered union maintains two types of funds:

 General fund
Political fund

Liabilities of a registered Trade Union

A Trade Union cannot spend the funds on anythi
ng the office bearers want. It can spend funds only on the
activities specified in Section 15. These include:
salaries of the office bearers.
expenses required for the administration of the trade
union
compensation to workers due to loss arise of any trade
dispute.
welfare activities of the workers including housing,
clothing, or any such activity.
benefits to the workers or their dependents in the case of
unemployment, disability, or death.
publishing material for creating awareness in the workers.
legal expenses required for defending or bringing a suit.
education of workers or their dependents.
expenses for medical treatment of workers.
taking insurance policies for workers.

d) DISQUALIFICATION OF OFFICE BEARER OF TRADE

UNION:
A person shall be disqualified for being chosen as or being
a member or an executive or an office bearer of a trade
union under the following circumstances:

If he has not attained the age of 18 years.

If he has been convicted by a Court in India to any offence

involving moral turpitude and sentenced to imprisonment
by a Court in India, unless a period of 5 years has been
elapsed since his release.
However, any person shall not be disqualified as an office
bearer if the

Offence does not involve moral turpitude.

Punishment is only pecuniary.

Disqualification is only for a temporary purpose.

RECOGNITION OF TRADE UNIONS:

Though the Indian Trade Union Act 1926 was amended in
the year 1947 to include section 28-C to section 28-I,
incorporating the provisions relating to recognition of a
trade union, these provisions have not come into
operation till date.
Mario Raposo vs H M Bhandarkar and others 1994 - Office
bearers of a trade union invested the money from general
fund into shares of UTI. This was held invalid because it is
a speculative investment.
A trade union cannot force members to subscribe to
political fund under section 16.
Under section 20 a trade union must make available all its
record books of accounts and list of membership for
inspection upon request of any member or his
representative.
Section 21 allows minors more than 15 yrs of age to be
members of a trade union. However, such minors cannot
hold office.
Under section 21-A, a trade union cannot appoint a person
who has been convicted of a crime involving moral
turpitude and has been imprisoned for 6 months or more
within last 5 years.
As per section 22, at least half of the office bearers of a
trade union of workers of unorganized sector must be
engaged or employed in an industry to which the trade
union is connected. Also, while a union has a right to
remove any office bearer, this power must be used
judiciously and rules of natural justice must be followed.
Under section 28, a general statement, audited in a
prescribed manner, of all income and expenses must be
sent to the registrar every year.

Rights and Privileges of a registered Trade Union

As per section 13, upon registration, a trade union
becomes a legal entity and as a consequence, it gets
perpetual succession and a corporate seal, it can acquire
and hold movable and immovable property, contract
through agents, and can sue and get sued.

 Under section 15 a registered trade union has a right to

establish a general fund.
Under section 16, a registered trade union has a right to
establish a political fund. Subscription to this fund is not
necessary for a member.
Under section 17, 18, and 19 a registered trade union gets
immunity in certain criminal, civil, and contractual
proceedings.
Immunity from Punishment for Criminal Conspiracy [Sec.
17]:
No office bearer or member of a registered Trade Union
will not be punished under the Sec .120B punishment of
criminal conspiracy of the Indian Penal Code (Conspiracy
cases are defined as cases in which two or more persons
agree to commit a crime or to commit an illegal act.)
regarding the matters of the spending the general funds
for proper purpose.
Immunity from civil suit to certain cases [Sec 18]:
No suit or other legal proceeding shall be maintainable in
any Civil Court against any registered Trade Union in the
following activities and circumstances.
Delay in the matters relating to the member of the Trade
Union regarding the trade disputes like contract of
employment, (is an agreement between an employer and
an employee which sets out their employment rights,
responsibilities and duties.)
Union or its members showing interest or interfering in
matters of the trade or business.
Trade Union or its members showing interest or interfering
in matters of the employment of the persons.
Trade Union or its members showing interest or interfering
in matters of the removal of labour.
Trade Union or its members showing interest or interfering
in matters of compensating or remunerating the
employees.
Registered Trade Union shall not be liable in any suit or
other legal proceeding in any Civil Court for the tortious
act (wrongful act) committed by the agent of the Trade
Union.
Registered Trade Union is not liable for the vicarious
liability (if agent commits mistake intentionally without the

knowledge of the Trade Union, agent is liable but not the

Trade Union)
Under section 24, trade unions have the right to
amalgamate.
Under section 28-F, the executive of a registered trade
union has a right to negotiate with the employer
the matters of employment or non-employment
or the terms of employment
or the condition of labor of all or any of the members of
the trade union
and the employer shall receive and send replies to letters
and grant interviews to such body regarding such matters.
It further provides that the executive is entitled to post
notices of the trade union meant for its members at any
premises where they are employed and that the employer
shall provide reasonable facilities for that.
Immunities available to a registered Trade Union
A registered trade union must follow the provisions of the
Trade Unions Act 1926. In particular, the following are
some restrictions in a registered trade union:
Section 17 confers immunity from liability in the case of
criminal conspiracy under section 120-B of IPC, committed
by an office bearer or a member. However, this immunity
is partial in the sense that it is available only with respect
to the legal agreements created by the members for the
furtherance of valid objects of a trade union as described
in section 15 of the act.
The immunity cannot be claimed for an act that is an
offence.
Registered Trade Unions have certain rights to do in
furtherance of their trade disputes such as calling for
strike, persuading members.
In the case of West India Steel Company Ltd. vs Azeez
1990 Kerala, a trade union leader obstructed work inside
the factory for 5 hrs while protesting against the
deputation of a workman to work another section.
It was held that while in a factory, the worker must submit
to the instructions given by his superiors.
A trade union leader has no immunity against disobeying
the orders.

 A trade union leader or any worker does not have any

right by law to share managerial responsibilities.
A trade union can espouse the cause of workers through
legal ways but officials of a trade union cannot direct other
workers individually or in general about how to do their
work.
They do not have the right to ask a worker to stop his
work or otherwise obstruct the work of the establishment.
An employer may deal with a person causing obstruction
in work effectively.
Section 18 confers immunity from civil proceedings in
certain cases to a trade union or its office bears or
members.
In general, a person is liable in torts for inducing another
person to breach his contract of employment or for
interfering with the trade or business of another.
However, a trade union, its officers, and its members are
immune from this liability provided that such an
inducement is in contemplation or furtherance of a trade
dispute. Further, the inducement should be lawful. There is
no immunity against violence, threats, or any other illegal
means.
In the case of P Mukundan and others vs Mohan Kandy
Pavithran 1992 Kerala, it was held that strike per se is not
an actionable wrong. Further, it was held that the trade
union, its officers, and its members are immune against
legal proceedings linked with the strike of workmen by the
provisions of section 18.
In the leading case of Rohtas Industries Staff Union vs
State of Bihar AIR 1963, it was held that employers do not
have the right to claim damages against the employee
participating in an illegal strike and thereby causing loss of
production and business.
In the case of Simpson & Group Companies Workers &
Staff Union vs Amco Batteries Ltd 1992 Karn., it was held
that physical obstruction of movement of management
officials, contractors, goods, or vehicles carrying raw
materials, is not a trade union right or a fundamental right
under art 19. Immunity under section 18 cannot be
claimed for such activities.
Right to picket is a very intangible right and it extends
only up to the right of free movement of others. The

methods of persuasion are limited to oral and visual and

do not include physical obstruction of vehicles or persons.
Section 19 Enforceability of agreements - In India, an
agreement in restraint of trade is void as per section 25 of
Indian Contract Act. However, such an agreement
between trade union members is neither void nor
voidable. It is important to note that this right is available
only to registered trade unions. An unregistered trade
union must follow the principles of general contract law.