Trade Union Registration

Trade Union Registration in Jharkhand- A trade union can be defined as an organised association of workers in a trade or profession, formed to further their rights and interests. In India, Trade Unions in India are registered under the Trade Union Act (1926). Trade unions are interested in the economic and social welfare of the workers. Labour unions may also have political interests in the larger society. Labour unions or trade unions are organizations formed by workers from related fields that work for the common interest of its members. They help workers in issues like fairness of pay, good working environment, hours of work and benefits. They represent a cluster of workers and provide a link between the management and workers.

According to Section 4 of The Indian Trade Union Act, 1926 t, seven or more union members may apply for union registration in accordance with the law. There are two conditions after that, firstly, the union is not registered unless at least 10% or 100 of the employees, whichever is less involved in the work of the company, are members of the company at the time the application is made, and secondly, no union can be established unless at least seven of the its members who are employees are employed by the company or industry at the time of application.
In accordance with Section 5 of the Act, each application for union registration must be submitted to the Secretary and accompanied by a copy of the union’s Articles of Association and a statement of the following data, namely:

Name, profession and address of the member who is applying;
the name of the trade union and the address of its registered office; and
Position, name, age, address, and occupation of the union official.
If the union has existed for more than one year, a copy of the assets and liabilities must be submitted with the application for registration.

The Indian Trade Union Act, 1926 defines a trade union as:
any combination, temporary or permanent, designed primarily to regulate the relationship between an employee and an employer, or between an employee and a worker, or between an employer and an employer, or to impose restrictive conditions on the conduct of any trade or business, and includes associations any of two or more unions [1].

Advantages of Labour Unions

  • Labour unions promote higher wages.
  • Labour unions help workers get better benefits.
  • Labour unions help families receive better benefits.
  • Labour unions provide better access to a funded retirement.
  • Labour unions provider worker protections.
  • Labour unions create an opportunity to negotiate frequently.

Disadvantages of Labour Unions

  • Labour unions can discount worker education and experience.
  • Labour unions require ongoing dues and may require initiation fees.
  • Labour unions may participate in activities that workers disagree upon.
  • Labour unions discourage individuality.
  • Labour unions offer job bumping arrangements.
  • Labour unions can have a poor public reputation.
  • Labour unions are a hierarchal environment.

Application process for  Trade Union Licence

  • Any group of seven or more persons can form a Trade Union.
  • No Trade Union of the workmen shall be registered unless at least 10% or 100, which ever is less, persons engaged or employed in the Establishment or industry with which it is connected are the members of such trade union on the date of making of application for registration
  • The minimum age limit for membership of a Trade Union is 18 years unless the rules of a particular trade union provide for higher age limit.
  • Every application for registration of a Trade union shall be made in (Form A) appended to the Trade Unions Act 1926 before the Registrar of Trade Unions and shall be accompanied by a copy of Rules of the trade union and a statement giving following particulars.
  • Names, occupations and address of the members making application.
  • The name of the Trade union and the address of its lead Office.
  • The titles, names, ages addresses and occupations of the (office bearers) of the trade union as per format given in Form A appended to the Trade Unions Act 1926.
  • In addition, the following documents are required to be submitted along with the application form:

Schedule I

Schedule II

Schedule III (optional)

Affidavit from General Secretary of Union

Legal status of a registered trade union

  1. A registered trade union is a body corporate with perpetual succession and a common seal.
  2. It can acquire, hold sell or transfer any movable or immovable property and can be a party to contracts.
  3. It can sue and be sued in its own name
  4. No civil suit or other legal proceeding can be initiated against a registered trade union in respect of any act done in furtherance of a trade dispute under certain conditions.
  5. No agreement between the members of a registered trade union shall be void or voidable merely on the ground that any of its objects is in restraint of trade.


Right to collective bargaining is recognized under the labour law however there is no legal obligation on employers to recognize a union or engage in collective bargaining.

The term settlement is used in Industrial Dispute Act, instead of collective bargaining. Settlement means a settlement arrived at in the course of conciliation proceeding and includes a written agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer.

A settlement arrived at by agreement between the employer and workman in the course of conciliation proceeding binds on the parties to the agreement. The settlement become applicable on the date on which the memorandum of settlement is signed by the parties or on a date agreed upon in agreement. The settlement is valid for the period agreed upon in the agreement or in absence of any such provision the settlement is valid for a period of six months from the date the memorandum was signed. The memorandum continues binding on the parties after its expiry, until the two months from the date on which notice in writing to terminate the settlement is given by one party to the other.

When a settlement is not arrived by the conciliation process, the dispute is then referred to a Court (Labour Court).

Scope and coverage of collective bargaining is limited within legal boundaries of Trade Union Act and Industrial Dispute Act.


Qus:-What are the rules regarding registration of trade union?

There are two conditions subsequent to the same, firstly no trade union of workmen shall be registered unless at least 10% or 100 of the workmen, whichever is less engaged in the employment of the establishment are its members on the date of making of its application and secondly no trade union shall be registered

Qus:-Is registration of a trade union compulsory?

Registration of a trade union is not compulsory but is desirable since a registered trade union enjoys certain rights and privileges under the Act. Minimum seven workers of an establishment (or seven employers) can form a trade union and apply to the Registrar for it registration.

Qus:-What are the seven  types of unions?

Seven types of unions

  • United Brotherhood of Carpenters and Joiners of America.
  • International Brotherhood of Electrical Workers.
  • Labourers’ International Union of North America.
  • American Nurses Association.
  • National Football League Players Association.
  • International Union of Painters and Allied Trades.

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