Q5 Rights and Liabilities of a Registered Trade Union under Trade Union Act,1926

Updated: Dec 16, 2020

Rights and Liabilities of a Registered Trade Union Here are the rights andliabilities of registered trade unions under the Trade Union Act, 1926.

Objects on Which General Funds May Be Spent: Funds of a general trade union cannot be spent on any other objects than the payment of salaries, allowances andexpenses to the office bearers of the trade unions;

Constitution of a Separate Fund for Political Purposes: A registered trade union may constitute a separate fund, from contributions, separately levied for or made to that fund, from which payments may bemade for the promotion of the civic and political interests of its members,

Criminal Conspiracy in Trade Disputes: Under this act, no office-bearer or member of aregistered trade union shall be liable to punishment under sub-section (2) of Section 120 B of the Indian Penal Code, 1860

Immunity from Civil Suit in Certain Cases No suit or other legal proceeding shall be maintainable in any civil court against any registered 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 voidable merely by reason of the fact that any to the subjects of theagreement are in restraint of the trade.

Right to Inspect Books of Trade Unions:The account books ofa registered trade union and the list of members maintained

Right of Minors to Membership of Trade Unions: Any person who has attained the age of 18 years may bea member of a registered trade union subject to any rules of the trade union to the contrary


Effects of Change of Name and of Amalgamation:

The change in the name of a registered trade union shall not affect any rights or obligations of thetrade union or render defective any legal proceeding by or against the trade union. An amalgamation of 2 or more registered trade unions shall not prejudice any right of any of such trade unions or any right of a creditor of any of them.


Short comings of Trade Unions:Trade union movement in our country suffers from the following weaknesses:

Uneven Growth:Trade unions are concentrated in the large-scale industry sector and in big industrial centers. There is very little trade union activity in the small sector, agricultural labour and domestic sector. Trade unionism has touched only a portion of the working class in India.


Small Size : Most of the unions have low membership though the number of unions and union membership are increasing, average membership is inadequate.


Weak Financial Position:The average yearly income of unions is very low and inadequate.

Political Leadership:Trade unions are under the leadership and control of political parties and outsiders. Politicians exploit unions and workers for their personal and political gains. Thus, the political leadership is very harmful to the trade union movement in India.


The multiplicity of Unions:There exist several unions in the same establishment or industry. The existence of rival unions with conflicting ideology is greatly responsible for the unhealthy growth of t rade union movement. In some cases, employers encourage split into unions to undermine their bargaining power.


The problem of Recognition: Employers are under no obligation to give recognition to any union.

The absence of Paid Office-Bearers: Most of the unions do not have Hill-time paid office-bearers.

Apathy of Members:Majority of workers do not take a keen interest in union activities. The attendance at the general meetings of unions is very poor.


Opposition from Employers:Trade unions in India have to face opposition from employers..

Inter-Union Rivalry: Multiple unions create a rivalry. Unions tryto play down each other in order to gain greater influence among workers.


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