A registered trade union operates as a corporate body with perpetual succession and a common seal, possessing the right to sue and be sued in its own name.
1. Definition of 'Trade Union' (Section 2(h))
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.
2. Registration Procedure (Sections 4-9)
- Who Can Apply (Section 4): Any seven or more members of a trade union may apply for registration by subscribing their names to the rules of the union and complying with the provisions of the Act.
- The 10% / 100 Rule (Section 9A):
⚠️ Mandatory Threshold: A registered trade union must at all times maintain at least 10% of the workmen or 100 workmen (whichever is less) engaged or employed in the establishment or industry, subject to a minimum of seven.
- Rules of the Trade Union (Section 6): The union constitution must specify its name, objects, purpose of funds, list of members, and the election of officers. At least 50% of the office-bearers must be actively engaged in the industry (Section 22).
- Cancellation of Registration (Section 10): The Registrar may withdraw or cancel registration if the certificate was obtained by fraud, the union has ceased to exist, or it has willfully contravened the provisions of the Act.