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Law relating to Employee benefit-,Factories Act 1948, Employee State Insurance Act, Payment of
Gratuity Act, Maternity Benefit act, Child Labor Abolition Act. Industrial Relation act, Industrial Dispute
Act, Employment Standing Order Act. Trade Union Act.

===============IR UNIT- IV=============================

*********FACTORIES ACT, 1948 ********

Applicability of the Act

To any premises where manufacturing activities are carried out with the aid of power and where 10 or
more workers are/were working OR where manufacturing activities are carried out without the aid of
power and where 20 or more workers are/were working.

Employer to ensure health of workers pertaining to

• Cleanliness Disposal of wastes and effluents

• Ventilation and temperature dust and fume

• Overcrowding Artificial humidification Lighting

• Drinking water Spittoons.

Safety Measures

• Facing of machinery

• Work on near machinery in motion.

• Employment prohibition of young persons on dangerous machines.

• Striking gear and devices for cutting off power.

• Self-acting machines.

• Casing of new machinery.

• Prohibition of employment of women and children near cotton-openers.

• Hoists and lifts.

Working Hours, Spread Over & Overtime of Adults

• Weekly hours not more than 48 hours.

• Daily hours, not more than 9 hours.

• Intervals for rest at least ½ hour on working for 5 hours.

• Spreadover not more than 10½ hours.


• Overlapping shifts prohibited.

• Extra wages for overtime double than normal rate of wages.

• Restrictions on employment of women before 6AM and beyond 7 PM.

Welfare Measures

• Washing facilities

• Facilities for storing and drying clothing

• Facilities for sitting

• First-aid appliances – one first aid box not less than one for every 150 workers.

• Canteens when there are 250 or more workers.

• Shelters, rest rooms and lunch rooms when there are 150 or more workers.

• Creches when there are 30 or more women workers.

• Welfare office when there are 500 or more workers.

Employment of Young Persons

• Prohibition of employment of young children i.e. below 14 years.

• Adolescent workers (15 to 18 years of age) are permitted with less working hours and special

Annual Leave with Wages

A worker having worked for 240 days @ one day for every 20 days of working.

Penal Provision

• For contraventions of Provisions of the Act, imprisonment upto 7 years or fine upto Rs.2,00,000/-.

• For continuous contraventions of the Act, imprisonment upto 10 year and/or fine upto Rs.5,000/- per

***********PAYMENT OF GRATUITY ACT, 1972************************

Object of the Act

To provide certain reward to the employees for a long meritorious service, at the end of their services.



Every factory, mine, oil field, plantation, port, railways, shop or establishment employing 10 or more
employees Once Act applies, it continues to apply even if employment strength falls below 10.


• Any person employed on wages/salary (irrespective of designation) and completed 5 years of

continuous service (except in case of death), shall be eligible for gratuity at the end of their services.


• 15 days wages (basic + DA) for every completed year of service.

• Maximum gratuity payable is Rs.10,00,000/- Calculation Method Monthly salary -------------------

Gratuity = 26 X 15 days X No. of year of service

Forfeiture of Gratuity

Gratuity can be forefeited on termination of an employee

• for moral turpitude or riotous or disorderly behaviour.

• Wholly or partially for wilfully causing loss, destruction of property etc.

Display of Notice

Certain notices & abstract of Act are to be displayed at conspicuous place at the main entrance in
English language or the language understood by majority of employees of the factory/establishment.


To be obtained by employer after expiry of one year’s service, in Form ‘F’

Penal Provision

• Imprisonment upto 2 years or fine upto Rs.20,000 for avoiding to make payment by making false
statement or representation.

• For other contraventions of the Act, imprisonment upto one year and/or fine upto Rs.10,000/-

**************MATERNITY BENEFIT ACT, 1961********************

Object of the Act

To protect the dignity of motherhood and to provide certain benefits to women employees at the time
of child-birth.

Coverage of the Act


Upon all women employees either employed directly or through contractor employed in mines,
factories, plantations and also in other establishments if the State Government so decides. Also
applicable to every shop or establishment in which ten or more persons are employed.

Conditions for eligibility of benefits

Women indulging temporary of unmarried are eligible for maternity benefit when she is expecting a
child and has worked for her employer for at least 80 days in the 12 months immediately proceeding the
date of her expected delivery.

This Act shall not be applicable when and where ESI Act is applicable.


• Leave with average pay for six weeks before the delivery.

• Leave with average pay for six weeks after the delivery.

• A medical bonus of Rs.3500/- if the employer does not provide free medical care to the woman.

• An additional leave with pay up to one month if the woman shows proof of illness due to the
pregnancy, delivery, miscarriage, or premature birth.

• In case of miscarriage, six weeks leave with average pay from the date of miscarriage.

Non Cash Benefits/Privilege

• Light work for ten weeks (six weeks plus one month) before the date of her expected delivery, if she
asks for it.

• Two nursing breaks in the course of her daily work until the child is 15 months old.

• No discharge or dismissal while she is on maternity leave.

• No change to her disadvantage in any of the conditions of her employment while on maternity leave.
• Pregnant women discharged or dismissed may still claim maternity benefit from the employer.

Exception: Women dismissed for gross misconduct lose their right under the Act for Maternity Benefit

Maintenance of Registers and Records

Every employer shall prepare and maintain such registers, records and muster-rolls and in such manner
as may be prescribed by Rules.

Penal Provision

For breach of provisions of the Act, the employer shall be punishable with imprisonment up-to one year
and/or fine not exceeding Rs.5,000.


*******EMPLOYEES’ STATE INSURANCE ACT, 1948 & SCHEME*******************

Object of the Act

To provide social insurance for the employees.

Applicability of the Act & Scheme Is extended in area-wise to factories employing 10 or more persons
and establish-ments employing 20 or more person.

Coverage of employees

Employees drawing gross wages upto Rs.15000/- per month, engaged either directly or thrugh contractor

Rate of Contribution of the wages

Employers’ 4.75%

Employees’ 1.75%

Manner and Time Limit for making Payment of contribution

The total amount of contribution (employee’s share and employer’s share) is to be deposited with the
authorised bank through a challan in the prescribed form in quadruplicate on or before 21st of month
following the calendar month in which the wages fall due.

Benefits to the employees under the Act

Medical, sickness, extended sickness for certain diseases, enhanced sickness, dependents maternity,
besides funeral expenses, rehabilitation allowance, medical benefit to insured person and his or her


To be deemed as wages

• Basic pay

• Dearness allowance

• House rent allowance

• City compensatory allowance

• Overtime wages (but not to be taken into account for determining the coverage of an employee)

• Payment for day of rest

• Production incentive


• Bonus other than statutory bonus

• Night shift allowance

• Heat, Gas & Dust allowance

• Payment for unsubstituted holidays

• Meal/food allowance

• Suspension allowance

• Lay off compensation

• Children education allowance (not being reimbursement for actual tuition fee)

NOT to be deemed as wages

• Contribution paid by kthe employer to any pension/provident fund or under ESI Act.

• Sum paid to defray special expenses entailed by the nature of employment – Daily allowance paid for
the period spent on tour.

• Gratuity payable on discharge.

• Pay in lieu of notice of retrenchment compensation

• Benefits paid under the ESI Scheme.

• Encashment of leave

• Payment of Inam which does not form part of the terms of employment.

• Washing allowance

• Conveyance Amount towards reimbursement for duty related journey

Contribution period

1st April to 30th September. 1st October to 31st March Contribution period If the person joined insurance
employment for the first time, say on 5th January, his first contribution period will be from 5th January to
31st March and his corresponding first benefit will be from 5th October to 31st December.

Penal Provision

• For contraventions of Provisions of the Act, imprisonment upto 2 years and fine upto Rs.5,000/-.

• For repeated contraventions of the Act, imprisonment upto 5 years and fine upto Rs.25,000/-.


===========IR UNIT-V========================

***************INDUSTRIAL DISPUTES ACT, 1947***************************

Object of the Act

Provisions for investigation and settlement of industrial disputes and for certain other purposes.

Important Definition

Industry – has attained wider meaning than defined except for domestic employment, covers from
shops with nominal employees to big industrial units.

Workman – Includes almost all category of employees, except person doing Managerial and
Administrative work, and also Supervisors earning wages more than Rs.10,000/- p.m.

Machinery to deal with Disputes

Works Committee– Joint Committee with equal number of employers and employees’ representatives
for discussion of certain common problems.

Conciliation–is an attempt by Govt. Official in helping to settle the disputes.

Adjudication – Labour Court, Industrial Tribunal or National Tribunal to hear and decide the dispute.

Persons Bound by Settlement

• When in the course of conciliation proceedings etc., all persons working or joining subsequently.

• Otherwise than in course of conciliation, upon the parties to the settlement.

Period of Operation of Settlements and Awards

• A settlement for a period as agreed by the parties, or • Period of six months on signing of settlement.
• An award for one year after its enforcement.

Conditions for Laying off

Failure, refusal or inability of an employer to provide work due to

• Shortage of coal, power or raw material.

• Accumulation of stocks.

• Breakdown of machinery.

• Natural calamity.

Lay off Compensation


Payment of wages except for intervening weekly holiday compensation 50% of total or basic wages and
DA for a period of lay off upto maximum 45 days in a year.

Notice of Change

21 days notice to be given by an employer to workmen about changing the conditions of service as
provided in IVth Schedule.

Prohibition of strikes & lock out

• Without giving to the employer notice of strike, as hereinafter provided, within six weeks before

• Within fourteen days of giving such notice.

• Before the expiry of the date of strike specified in any such notice as aforesaid.

• During the pendency of any conciliation proceedings before a conciliation officer and seven days after
the conclusion of such proceedings.

• During the pendency of conciliation proceedings before a Board and seven days after the conclusion
of such proceedings.

• During the pendency of proceedings before a Labour Court, Tribunal or National

• Tribunal and two months, after the conclusion of such proceedings.

• During the pendency of arbitration proceedings before an arbitrator and two months after the
conclusion of such proceedings, where a notification has been issued under Sub-Section(3A) of section

• During any period in which a settlement or award is in operation, in respect of any of the matters
covered by the settlement or award.

Prior Permission from the Govt

When there are more than 100 workmen (in UP 300 or more) during proceeding 12 months, prior
permission to be obtained by the Employer for Lay Off, Retrenchment or Closure.

Retrenchment of Workmen Compensation & Conditions

No employees who has worked for 240 days in a year shall not be retrenched unless paid/given:

• Retrenchment compensation @ 15 days’ wages for every completed year of service.

• Given One month’s notice or wages in lieu thereof.

• Reasons for retrenchment


• Complying with principle of ‘last come first go’.

Notice for Closure of an Undertaking

• 60 days’ notice to the authorities for intended closure in prescribed form, when there are minimum
50 workers and less than 100 workers.

• To apply for Prior permission from Govt. atleast 90 days before the intended closure, when there are
100 or more workmen during preceding 12 months (in UP 300 or more workmen)

Penal Provision

• For breach of provisions of the Act, the employer shall be punishable with imprisonment upto 6
months and/or fine not exceeding Rs.5,000/-.

• On continuity of offence fine upto Rs.200/- per day.

***********INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1961*****************

Object of the Act

To standardize the service conditions of the workmen employed in any industrial establishment. The Act
lay down uniformity in the service conditions of the employees in Industrial Establishments, so that the
employer and the employees know in clear manner their rights and obligations.

Applicability of the Act

• Every industrial establishment wherein 100 or more employees are employed. In many States like
Maharashtra, the Act is made applicable if the number of employees is 50 or more.

• There are some establishments where this Act is not Applicable such as any establishment/industry
covered by Bombay Industrial Relations Act, 1946, M.P. Industrial Employment (Standing Orders) Act,
1961 & Industrial Establishments employing persons covered by Civil Service Rules.

Matters to be provided in Standing orders

• Classification of workmen, e.g., whether permanent, temporary, apprentices, probationers, or badlis.

Manner of intimating to workmen periods and hours of work, holidays, pay-days and wage rates.

• Shift working.

• Attendance and late coming.

• Conditions of, procedure in applying for, and the authority which may grant, leave and holidays.

• Requirement to enter premises by certain gates, and liability to search.


• Closing and re-opening of sections of the industrial establishments, and temporary stoppages of work
and the right and liabilities of the employer and workmen arising therefrom.

• Termination of employment, and the notice thereof to be given by employer and workmen.

• Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct.

Additional Matters

• Service Record

• Token tickets,

• Record of age,

• Fixing Age of retirement

• Medical Examination

• Secrecy

• Exclusive Service

Submissions of Draft Standing Orders

The employer has to submit draft Standing orders for certification within six months from the date
when the Act becomes applicable to an industrial establishment.

Temporary Application of Model Standing Orders Till the certification is done by the Certifying Officer,
the Model Standing orders provided by the Rules shall be applicable to the Establishment.

Procedure for Certification of Standing Orders

• The Draft Standing Order to be submitted to the Certifying Officer.

• The Certifying Officer has to forward a copy of draft standing orders to the trade union or in the
absence of union, to the workmen of the industry.

• The trade union or the other representatives, as the case may be, are to be heard. (Sec.5)

• After hearing both the parties and after making necessary changes and amendment, the Certifying
Officer shall certify the Standing order.

Date of commencement of Operation of Standing Orders

On the date of expiry of 30 days from certification or on the expiry of 7 days from the Appellate order if
any passed.

Display of Standing Orders


The certified Standing Orders should be displayed in English language or in the language understood by
majority of workmen on a notice board at or near the entrance of the Establishment.

Penal Provisions

• For contraventions of provisions of the Act, a fine upto Rs. 5000/- can be imposed.

• For repeated or continuous contravention of the Act, further fine of Rs. 200/- per day can be imposed

***************The Trade Union Act, 1926********************

The law relating to the registration and protection of the Trade Unions is contained in the Trade Unions
Act, 1926 which came into force with effect from 1st June 1927. The Act extends to the whole of India
except the State of Jammu and Kashmir.

In common parlance, Trade Union means an association of workers in one or more occupations. Its object
is the protection and promotion of the interests of the working class. Trade Unions have a home grown
philosophy based on workers' experience and psychology. It grows out of the workers' day-to-day
the objective of trade union is, any organisation having minimum number of workers or employees in
accordance with the trade union act 1926, having right to form trade union in their organisation and also
have right to elect members of trade union. Trade union is having Right, to protect workers against
exploitation by employer,to represent the grievance of employees on behalf of them to the management,to
protect rights of the workers provided by the employment or labour laws, to take participation in
management for decision-making in connection to workers and to take disciplinary action against the
worker who commits in-disciplinary action.

Central Trade Union Organizations in India:

 All India Trade Union Congress (AITUC)

 Bharatiya Mazdoor Sangh (BMS)
 Centre of Indian Trade Unions (CITU)
 Hind Mazdoor Kisan Panchayat (HMKP)
 Hind Mazdoor Sabha (HMS)
 Indian Federation of Free Trade Unions (IFFTU)
 Indian National Trade Union Congress (INTUC)
 National Front of Indian Trade Unions (NFITU)
 National Labor Organization (NLO)
 Trade Unions Co-ordination Centre (TUCC)
 National Mazdoor Union (NMU

June 2012: The National Mazdoor Union (NMU) gave a strike notice to APSRTC ( Andhra Pradesh State
Road Transportation Corporation) Managing Director with nearly 36 demands. In case management fails
to react, union members have decided to strike from following month.


National Mazdoor Union (NMU) said the 36 demands, four were most important. "Abolition of contract
system in APSRTC, regularisation of nearly 22,000 contract drivers and bus conductors, constitution pay
commission were among these.

June 2012: one of the unions of Visakhapatnam steel plant, Indian National Trade Union Congress
(INTUC), has demanded rupees 1 crore ex-gratia ( compensation) for the families of the victims of the
explosion had occurred at the 'oxygen control unit' near the Steel Melting Shop-II at Visakhapatnam steel
plant which claimed the lives of 20 persons on 12-june-2012. Visakhapatnam steel plant had already paid
20 lakh rupees to each of the families of the deceased workers and officers. The union also demanded a
permanent job for the Kin of the victims. The deceased include Deputy General Manager (Construction)
L Srihari and Deputy General Manager (instrumentation) P V Karunakar.


Appropriate Government [Sec. 2]: In relation to Trade Unions whose objects are not confined to one state
'the appropriate Government' is the Central Government. In relation to other Trade Unions, the
'appropriate Government' is the State Government.

Executive [Sec. 2(a)]: Executive means the body of which the management of the affairs of a Trade
Union is entrusted.

Trade Dispute [Sec. 2(g)]: A trade dispute means any dispute between the employers and workmen, the
workmen and workmen and the employers and employers which is connected with the employment or
non-employment, or the terms of employment, or the conditions of labour of any person. 'Workmen' mean
all persons employed in trade or industry whether or not in the employment of the employer with whom
the trade dispute arises.

Trade Union [Sec. 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 for imposing restrictive conditions on the
conduct of any trade or business and includes any federation of two or more Trade Unions.

5. Registered Trade Union [Sec. 2(e)]: A registered Trade Union means a 'Trade Union' registered under
the Act.


Below mentioned acts will not apply to any registered Trade Union, had the registration of any such
Trade Union under any such Act shall be void.

The Societies Registration Act, 1860.

The Cooperative Societies Act, 1912.

Trade Unions can be registered only under the Trade Union Act, 1926.



[Sec 3] Appointment of Registrars.

The government will appoint a person to be a Registrar.

The government will appoint required number of person as the Addition and deputy Registrar of the
Trade Unions. These office will be under the Registrar of the Trade Union

[Sec 4] Minimum Requirement of Registration of Trade Union (2001 amendment)

Applicants seeking registration to show that at least 10% or 100 workmen, whichever is less, engaged in
relevant industry members of such trade union on the date of making application. If a trade union fails to
attract at least 10% workmen engaged in the establishment is has no right to get registered. However, it
has been made clear on the date of making application for registration at least 7 persons as its members
must be workmen engaged actually in that industry with which the trade union is connected. It appears
that the strength of the workmen in that industry or establishment must be 70 at least to enable them to
form a trade union and get it registered under the Act, the reason being that 10% of 70 would be 7 which
would fulfill the requirement.

[Sec 5] Application for Registration.

Application for registering the Trade Union should contain the following.

a) Name of the 7 persons in Trade Union.

b) Occupation of the persons.
c) Address of the persons.
d) Place of the work of the persons.
e) Name of the Trade Union.
f) Address of the Trade Union head Office.

If Trade Union has already been existing for one year, for its registration the members should submit all
the details of the Trade Union going to be registered by the Registrar of Trade Union.

[sec. 6] Provisions to be contained in the rules of a Trade Union (2001 amendment)

For registration of the Trade Union, provision or rules mentioned below should be followed by the
member for registration of the Trade Union according to this act.

a) The name of the Trade Union.

b) The object of the Trade Union.
c) General funds of the Trade Union by its members should be properly used for Lawful purpose.
d) Maintenances of list of members in the Trade Union and their facilities to be provided.
e) Half of the members of the trade union must be the member who actually engaged in an industry
with which trade union is connected.
(ee) the payment of a minimum subscription by members of the Trade Union which shall not be
less than—


(i) one rupee per annum for rural workers;

(ii) three rupees per annum for workers in other unorganized sectors; and
(iii) twelve rupees per annum for workers in any other case;
f) Disciplinary action against member of the Trade Union and procedures in imposition of fines on
members .
g) the manner in which the rules shall be amended, varied or rescinded;

h) the manner in which the members of the executive and the other of the Trade Union shall be
elected and removed

(hh) executive members and other office bearers should be elected for the period of maximum 3
i) Funds of the Trade Union should be safe guarded, annual audit is necessary, and account books
should be maintained for the purpose of inspection if necessary.

j) Procedure how to wind up the Trade Union

Power to call for further particulars and to require alteration of name. [Sec 7]

If Registrar is not satisfy with information provided by the members of the Trade Union going to be
registered, Registrar is having power to call its members for submitting the additional and required
information for registering the Trade Union.

If the Name of the Trade Union is already existed or similar to other Trade Unions names, registrar is
having power to order for changing of the name

Registration [Sec 8]

All the documents submitted with details and information is correct by the members of the Trade Union
going to be registered, the Registrar will register the Trade Union.

Certificate of Registration. [Sec 9]

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.

Minimum requirement about membership of a Trade Union. [Sec 9A]

A registered Trade Union of workmen shall at all times continue to have not less than 10% or 100 of the
workmen, whichever is less, subject to a minimum of seven, engaged or employed in an establishment or
industry with which it is connected, as its members.

Cancellation of registration [sec. 10] (2001 amendment)

Registrar of the Trade Union can cancel the registration of the Trade Union in following circumstances


When Trade Union registration certificate has been obtained by fraud or other illegal means.

Disobey the rules and regulation of Trade Union act.

All the provision contained in section 6 of this act not followed by the members of the Trade Union.

When there are no minimum required numbers of members in the Trade Union.

Appeal [Sec 11]

If Registrar of the Trade Union stops registration of the Trade Union or withdrawal of the registration,
members can appeal to Labour Court or an Industrial Tribunal, with in jurisdiction.

Court can 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

[Sec 13] Features of Registered Trade Union.

Registered Trade Union will have perpetual succession (will no stop after the death of the members of the
Trade Union.

Every registered Trade Union will have common seal.

Every registered Trade Union can acquire and hold both movable and immovable property.

Every registered Trade Union can sue others.

Every registered Trade Union can sued by others also.


A registered Trade Union has the right to maintain

(a) a general fund, and

(b) a separate fund for political purposes:

But the Unions are bound to utilize the funds only for the purposes specified in the Act.


1. The following are the purposes for which the general funds of the Union may be spent:
Payment of salaries, allowances, etc., to the office bearers of the Union.
2. Payment of expenses for the administration of the Union including other expenses spent on
defending any legal proceedings by or against the Union.
3. Settlement of trade disputes.
4. Special allowances to the members (including dependants) of the Trade Union on account of
death, sickness or accidents, etc.
5. Compensation to members for loss arising out of trade disputes.
6. Providing educational, social and religious benefits to the members.


7. Issue of assurance policies on the lives of members and also against sickness, accidents,
unemployment, insurance, etc.
8. Providing for publication of periodicals for the use of which is intended for the members benefit.
9. Any other object that may be notified by the appropriate Government in the Official Gazette.

If funds are spent for any purposes other than the above, such expenditure is treated as unlawful and the
Trade Union can be restrained by the Court for applying its funds in any other purposes.

Construction of separate fund for political purposes [sec. 16]

Apart from the primary objects, a Trade Union may have certain other political objects. As per Sec. 16 a
registered union may constitute a separate fund in addition to the general fund and the payment of such a
fund shall be utilized for serving civic and political interest of its members. The fund can be utilized for
the following purposes:

 Holding of any meeting or distribution of any literature or document in support of any candidate
for election as a member of legislative body constituted under the constitution or of any local
 For maintenance of any person who is a member of any legislative body constituted under the
 For convening of political meeting of any kind or distribution of political literature or documents
of any kind.
 The registration of electors for selection of a candidate for legislative body.

The funds collected for political purposes shall not be clubbed with the general fund. No workman is
compelled to contribute in this fund and the nonpayment in this fund cannot be made a condition for
admission to the Trade Union.

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.)


 Trade 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
 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)

Right to inspect books of Trade Union. [Sec 20 ]

The account books of a registered Trade Union and the list of members thereof shall be open to inspection
by office-bearer or member of the Trade Union at such times as may be provided for in the rules of the
Trade Union.

Rights of minors to membership of Trade Unions.[Sec 21]

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.

Disqualifications of office-bearers of Trade Unions. [Sec 21A]

person shall be disqualified for being chosen as, and for being member of the executive or any other
office-bearer of a registered Trade Union if—

 he has not attained the age of 18 years;

 he has been convicted by a Court in India of any offence involving moral turpitude and sentenced
to imprisonment, unless a period of 5 years has elapsed since his release.

Change of name [Sec 23] - Any registered Trade Union may, with the consent of not less than 2/3rd of the
total number of its members can change its name.


[Sec 24] Any 2 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 60% of the votes recorded are in favor of the proposal.

[Sec 25]


 in case of change in the name of the Trade Union, written notice of the change of name must be
signed by secretary and 7 member of the Trade Union are required to sent to registrar of the Trade
 in case of an amalgamation of the Trade Union, written notice of an amalgamation must be
signed by secretary and 7 member of the Trade Union are required to sent to registrar of the Trade
 Trade Union name should not match with the other Trade Union names.
 If Registrar satisfies with all requirements provided by the members of Trade Union, Registrar
will change the name and the same entered in the register.
 If Registrar satisfies with all requirements provided by the members of Trade Unions, Registrar
will validate amalgamation and entered in the register.

Dissolution of Trade Union [sec. 27]

notice of dissolution signed by secretary and 7 member of the Trade Union, should be sent to the
Registrar of the Trade Union within 14 days from the date of the dissolution of the Trade Union.

If registrar satisfies with provisions and rules followed by the members of the Trade Union for
dissolution, he will confirm the dissolution.

Funds shall be divided by the Registrar among its members if there is no rules mention by the Trade
Union in distribution of the funds.


Every registered Trade Union shall have to submit annually to the Registrar a general statement of all
receipts and expenditures during the year ended the 31st day of December. Such a statement shall be
accompanied by another statement containing assets and liabilities of Trade Union as existing on 31st
December each year.