Labour Law - Complete Syllabus for University Examinations

Evolution of Industrial Legislation in India

Industrial legislation in India has its roots in the colonial era, when the British government enacted various laws to regulate the working conditions, wages, and rights of the Indian labour force. Some of the earliest laws were the Factories Act of 1881, the Workmen’s Compensation Act of 1897, the Trade Disputes Act of 1908, and the Trade Unions Act of 1926. These laws were mainly aimed at protecting the interests of the British employers and maintaining social order, rather than promoting the welfare of the Indian workers.

However, after the First World War, the Indian labour movement gained momentum and demanded better working conditions, higher wages, and more political rights. The Royal Commission on Labour in India (1929-31) was appointed to examine the labour problems and suggest reforms. The Commission recommended the enactment of several laws, such as the Payment of Wages Act of 1936, the Industrial Employment (Standing Orders) Act of 1946, the Industrial Disputes Act of 1947, and the Minimum Wages Act of 1948. These laws aimed at improving the industrial relations, ensuring fair wages, and preventing unfair labour practices.

After independence, the Indian government adopted a socialist approach to economic development and gave priority to the interests of the working class. The Constitution of India, which came into force in 1950, incorporated several provisions related to labour rights, such as the right to form trade unions, the right to equal pay for equal work, the right to social security, and the directive principles of state policy. The government also enacted several laws to implement these constitutional provisions, such as the Employees’ State Insurance Act of 1948, the Employees’ Provident Funds and Miscellaneous Provisions Act of 1952, the Maternity Benefit Act of 1961, the Payment of Bonus Act of 1965, and the Contract Labour (Regulation and Abolition) Act of 1970. These laws aimed at providing social security, welfare, and benefits to the workers.

In the post-liberalization era, since 1991, the Indian government has adopted a market-oriented approach to economic development and has initiated various reforms to attract foreign investment and promote competitiveness. The government has also attempted to rationalize and simplify the existing labour laws, which are often criticized for being outdated, complex, and rigid. Some of the recent initiatives include the enactment of the Industrial Relations Code of 2020, the Code on Social Security of 2020, the Code on Wages of 2019, and the Code on Occupational Safety, Health and Working Conditions of 2020. These codes aim at consolidating and simplifying the existing labour laws and making them more flexible and adaptable to the changing economic and social conditions.

Industrial Disputes Act, 1947

Scope and Object, Main Features, Important Definition

The Industrial Disputes Act, 1947 is one of the most important and comprehensive laws governing the industrial relations in India. The main object of the Act is to prevent and settle industrial disputes between employers and employees, or between employees and employees, by providing various mechanisms, such as conciliation, arbitration, adjudication, and collective bargaining. The Act also lays down the rights and obligations of the parties involved in industrial disputes, such as the right to strike and lock-out, the prohibition of unfair labour practices, the payment of compensation, and the regulation of lay-off, retrenchment, and closure.

The Act applies to all industrial establishments, whether public or private, engaged in any industry, as defined in the Act. The Act defines an industry as “any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen”. The Act also defines an industrial establishment as “any establishment in which any industry is carried on”. The Act covers all persons employed in any industry, whether skilled or unskilled, manual or clerical, supervisory or managerial, except those who are employed mainly in a managerial or administrative capacity, or who are employed in a supervisory capacity and draw wages exceeding fifteen thousand rupees per month. The Act also excludes certain categories of employees, such as those employed in the Indian Navy, Army, or Air Force, or in any other establishment under the control of the Central Government, or in any police force, or in any prison, or in any service or employment connected with the defence of India.

The Act defines an industrial dispute as “any dispute or difference between employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person”. The Act also defines an individual dispute as “any dispute or difference between an employer and a workman which is not of a collective nature”. The Act provides that an individual dispute can be treated as an industrial dispute, if it is sponsored by a trade union or a substantial number of workmen.

The Act defines a workman as “any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied”. The Act also defines an employer as “any person who employs, whether directly or through another person, or whether on behalf of himself or any other person, one or more workmen in any industry”. The Act also defines a trade union as “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”.

Reference of Disputes

The Act provides that any industrial dispute, whether existing or apprehended, can be referred by the appropriate government, either on its own motion or on the application of any party, to one of the following authorities for settlement:

• A Board of Conciliation, which is a body consisting of an independent chairman and two or four members representing the parties to the dispute. The function of the Board is to promote the settlement of the dispute by conciliation, that is, by persuading the parties to reach an amicable agreement. The Board has to submit its report to the appropriate government within two months from the date of its constitution. The report of the Board is not binding on the parties, but it has persuasive value.
• A Court of Inquiry, which is a body consisting of one or more independent persons appointed by the appropriate government. The function of the Court is to inquire into the matters of the dispute and submit its report to the appropriate government within six months from the date of its constitution. The report of the Court is not binding on the parties, but it has informative value.
• A Labour Court, which is a body consisting of one person, who is or has been a judge of a High Court or a District Judge or has the prescribed qualifications. The function of the Labour Court is to adjudicate upon the matters specified in the Second Schedule of the Act, such as wages, hours of work, leave, bonus, retrenchment, etc. The Labour Court has to submit its award to the appropriate government within six months from the date of its constitution. The award of the Labour Court is binding on the parties, subject to the approval of the appropriate government.
• An Industrial Tribunal, which is a body consisting of one person, who is or has been a judge of a High Court or has the prescribed qualifications. The function of the Industrial Tribunal is to adjudicate upon the matters specified in the Third Schedule of the Act, such as classification of workmen, profit-sharing, social security, etc. The Industrial Tribunal has to submit its award to the appropriate government within six months from the date of its constitution. The award of the Industrial Tribunal is binding on the parties, subject to the approval of the appropriate government.
• A National Tribunal, which is a body consisting of one person, who is or has been a judge of a High Court. The function of the National Tribunal is to adjudicate upon the matters of national importance or affecting the interests of more than one state. The National Tribunal has to submit its award to the Central Government within six months from the date of its constitution. The award of the National Tribunal is binding on the parties, subject to the approval of the Central Government.

Voluntary Arbitration (Section 10A)

The Act provides that any industrial dispute can be referred by the consent of the parties to an arbitrator or arbitrators for settlement. The arbitrator or arbitrators can be chosen by the parties themselves, or by the appropriate government, if the parties fail to agree. The arbitrator or arbitrators have to submit their award to the appropriate government within the time specified by the parties, or within four months from the date of entering upon the reference, or within such extended time as the appropriate government may grant. The award of the arbitrator or arbitrators is binding on the parties, subject to the approval of the appropriate government.

Award

The Act defines an award as “an interim or a final determination of any industrial dispute or of any question relating thereto by any Labour Court, Industrial Tribunal or National Tribunal or by an arbitrator or other person in accordance with this Act”. The award has to contain the points of dispute, the decision thereon, and the reasons for such decision. The award has to be published by the appropriate government within thirty days from the date of its receipt. The award becomes enforceable on the expiry of thirty days from the date of its publication, unless it is modified or rejected by the appropriate government.

Authorities under the Act

The Act provides for the constitution of various authorities to deal with the industrial disputes, such as:

• The appropriate government, which means the Central Government or the State Government, depending on the nature and extent of the industry. The appropriate government has the power to refer any industrial dispute to the Board of Conciliation, the Court of Inquiry, the Labour Court, the Industrial Tribunal, or the National Tribunal, as well as to approve, modify, or reject the awards of these authorities. The appropriate government can also make rules for the conduct of proceedings before these authorities and for the enforcement of their awards.
• The conciliation officer, who is an officer appointed by the appropriate government to mediate and promote the settlement of any industrial dispute. The conciliation officer has the duty to investigate the dispute, hold conciliation proceedings, and submit a report to the appropriate government within fourteen days from the date of commencement of the conciliation proceedings. The report of the conciliation officer is not binding on the parties, but it has persuasive value.
• The Board of Conciliation, which is a body consisting of an independent chairman and two or four members representing the parties to the dispute. The function of the Board is to promote the settlement of the dispute by conciliation, that is, by persuading the parties to reach an amicable agreement. The Board has to submit its report to the appropriate government within two months from the date of its constitution. The report of the Board is not binding on the parties, but it has persuasive value.
• The Court of Inquiry, which is a body consisting of one or more independent persons appointed by the appropriate government. The function of the Court is to inquire into the matters of the dispute and submit its report to the appropriate government within six months from the date of its constitution. The report of the Court is not binding on the parties, but it has informative value.
• The Labour Court, which is a body consisting of one person, who is or has been a judge of a High Court or a District Judge or has the prescribed qualifications. The function of the Labour Court is to adjudicate upon the matters specified in the Second Schedule of the Act, such as wages, hours of work, leave, bonus, retrenchment, etc. The Labour Court has to submit its award to the appropriate government within six months from the date of its constitution. The award of the Labour Court is binding on the parties, subject to the approval of the appropriate government.
• The Industrial Tribunal, which is a body consisting of one person, who is or has been a judge of a High Court or has the prescribed qualifications. The function of the Industrial Tribunal is to adjudicate upon the matters specified in the Third Schedule of the Act, such as classification of workmen, profit-sharing, social security, etc. The Industrial Tribunal has to submit its award to the appropriate government within six months from the date of its constitution. The award of the Industrial Tribunal is binding on the parties, subject to the approval of the appropriate government.
• The National Tribunal, which is a body consisting of one person, who is or has been a judge of a High Court. The function of the National Tribunal is to adjudicate upon the matters of national importance or affecting the interests of more than one state. The National Tribunal has to submit its award to the Central Government within six months from the date of its constitution. The award of the National Tribunal is binding on the parties, subject to the approval of the Central Government.

Procedures, Powers and Duties of Authorities

The Act lays down the procedures, powers and duties of the various authorities under the Act, such as:

• The conciliation officer, the Board of Conciliation, the Court of Inquiry, the Labour Court, the Industrial Tribunal, and the National Tribunal have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908, in respect of the following matters:

  • Enforcing the attendance of any person and examining him on oath;
  • Compelling the production of documents and material objects;
  • Issuing commissions for the examination of witnesses;
  • In respect of such other matters as may be prescribed.

• The conciliation officer, the Board of Conciliation, the Court of Inquiry, the Labour Court, the Industrial Tribunal, and the National Tribunal have the duty to maintain a record of the evidence and proceedings before them and to give reasons for their findings or recommendations.

• The conciliation officer, the Board of Conciliation, the Court of Inquiry, the Labour Court, the Industrial Tribunal, and the National Tribunal have the power to regulate their own procedure and to grant adjournments or extensions of time as they deem fit.

• The conciliation officer, the Board of Conciliation, the Court of Inquiry, the Labour Court, the Industrial Tribunal, and the National Tribunal have the power to issue interim orders or injunctions as they deem necessary for the preservation of the status quo or for the prevention of any breach of the terms of settlement or award.

• The conciliation officer, the Board of Conciliation, the Court of Inquiry, the Labour Court, the Industrial Tribunal, and the National Tribunal have the power to correct any clerical or arithmetical mistakes in their reports or awards or to make any other minor changes as they deem necessary.

Strike

The Act defines a strike as “a cessation of work by a body of persons employed in any industry acting in combination, or a concerted refusal, or a refusal under a common understanding, of any number of persons who are or have been so employed to continue to work or to accept employment”. The Act provides that no workman employed in any industrial establishment shall go on strike in breach of contract:

• Without giving to the employer notice of strike, as hereinafter provided, within six weeks before striking; or
• Within fourteen days of giving such notice; or
• Before the expiry of the date of strike specified in any such notice as aforesaid; or
• During the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings; or
• During the pendency of proceedings before a Labour Court, Tribunal or National Tribunal and two months after the conclusion of such proceedings; or
• 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 10A; or
• 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.

The Act also provides that no employer of any industrial establishment shall lock-out any of his workmen:

• Without giving them notice of lock-out as hereinafter provided, within six weeks before locking-out; or
• Within fourteen days of giving such notice; or
• Before the expiry of the date of lock-out specified in any such notice as aforesaid; or
• During the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings; or
• During the pendency of proceedings before a Labour Court, Tribunal or National Tribunal and two months after the conclusion of such proceedings; or
• 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 10A; or
• 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.

The Act also provides that the appropriate government may, by order in writing, prohibit the continuance of any strike or lock-out in connection with any industrial dispute, which it is of opinion that it is causing grave hardship to the community or is prejudicial to the public interest. Such an order shall be published in such manner as the appropriate government thinks fit and shall be binding on all persons.

Lock-Out

The Act defines a lock-out as “the temporary closing of a place of employment, or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him”. The Act provides that no employer of any industrial establishment shall lock-out any of his workmen in breach of contract, as mentioned above. The Act also provides that the appropriate government may prohibit the continuance of any lock-out, as mentioned above.

Retrenchment

The Act defines retrenchment as "the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include:

• Voluntary retirement of the workman; or
• Retirement of the workman on reaching the age of superannuation if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf; or
• Termination of the service of the workman as a result of the non-renewal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein; or
• Termination of the service of a workman on the ground of continued ill-health".

The Act provides that no workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until:

• The workman has been given one month’s notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice; and
• The workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days’ average pay for every completed year of continuous service or any part thereof in excess of six months. 

Transfer and Closure

The Act defines transfer as “the transfer of ownership or management of an undertaking from one employer to another employer, where the terms and conditions of service applicable to the workmen after such transfer are in any way less favourable to them than those applicable to them before such transfer”. The Act provides that no employer, who proposes to transfer any undertaking in which not less than one hundred workmen are employed on an average per working day for the preceding twelve months, shall effect such transfer without obtaining the prior permission in writing of the appropriate government. The appropriate government may grant or refuse to grant such permission after giving an opportunity of being heard to the employer, the workmen and the transferee and after considering the interests of all parties and the public interest. The appropriate government may also impose such conditions as it may deem fit while granting such permission.

The Act defines closure as “the permanent closing down of a place of employment or part thereof”. The Act provides that no employer, who intends to close down an undertaking in which not less than one hundred workmen are employed on an average per working day for the preceding twelve months, shall do so without obtaining the prior permission in writing of the appropriate government. The appropriate government may grant or refuse to grant such permission after giving an opportunity of being heard to the employer and the workmen and after considering the interests of all parties and the public interest. The appropriate government may also impose such conditions as it may deem fit while granting such permission.

The Act also provides that the employer shall pay compensation to every workman who is affected by the transfer or closure of the undertaking, at the rate of fifteen days’ average pay for every completed year of continuous service or any part thereof in excess of six months.

Regulation of Management’s Prerogative During Pendency of Proceedings

The Act provides that during the pendency of any conciliation proceedings or proceedings before a Labour Court, Tribunal or National Tribunal in respect of an industrial dispute, no employer shall:

Alter, to the prejudice of the workmen concerned in such dispute, the conditions of service applicable to them immediately before the commencement of such proceedings; or

Discharge or punish, whether by dismissal or otherwise, any workman concerned in such dispute, save with the express permission in writing of the authority before which the proceeding is pending.

The Act also provides that during the pendency of any such proceeding in respect of an industrial dispute, the employer may, in accordance with the standing orders applicable to a workman concerned in such dispute, or where there are no such standing orders, in accordance with the terms of the contract, whether express or implied, between him and the workman:

Alter, in regard to any matter not connected with the dispute, the conditions of service applicable to that workman immediately before the commencement of such proceeding; or

For any misconduct not connected with the dispute, discharge or punish, whether by dismissal or otherwise, that workman:

Provided that no such workman shall be discharged or dismissed, unless he has been paid wages for one month and an application has been made by the employer to the authority before which the proceeding is pending for approval of the action taken by the employer.

The Act also provides that any contravention of the above provisions by the employer shall be deemed to be an illegal lock-out and any contravention of the above provisions by the workman shall be deemed to be an illegal strike. The Act also provides that any action taken by the employer or the workman in contravention of the above provisions shall be ineffective and shall not affect the proceedings or the final order made therein. The Act also provides that the authority before which the proceeding is pending may, for reasons to be recorded in writing, grant or refuse to grant the permission or approval sought by the employer or the workman, as the case may be. The authority may also set aside or modify any action taken by the employer or the workman, as the case may be, and make such other orders as it may deem fit. The authority may also impose such conditions as it may deem fit while granting or refusing such permission or approval. The authority may also direct the reinstatement of any workman who has been discharged or dismissed or whose services have been otherwise terminated. The authority may also direct the payment of such compensation or damages as it may deem fit to any workman who has been discharged or dismissed or whose services have been otherwise terminated. The authority may also direct the payment of such wages as it may deem fit to any workman whose services have been altered or affected by the employer or the workman, as the case may be. The authority may also direct the payment of such costs as it may deem fit to any party to the proceeding. The authority may also make such interim orders as it may deem fit pending the final decision. The authority may also review its own order on the application of any party to the proceeding. The order of the authority shall be final and binding on all parties to the proceeding and shall not be questioned in any court. The order of the authority shall be enforceable in the same manner as an award under the Act.

Growth of Unions

Trade unions are associations of workers formed to protect and promote their interests and rights. Trade unions in India have a long and rich history, dating back to the late 19th century, when the first organized labour movements emerged in response to the exploitation and oppression of the workers by the colonial rulers and the native employers. Some of the earliest trade unions in India were the Bombay Millhands Association (1890), the Amalgamated Society of Railway Servants of India (1897), the Printers’ Union of Calcutta (1905), and the Madras Labour Union (1918).

The trade union movement in India gained momentum after the First World War, when the workers participated in various nationalist and anti-imperialist struggles, such as the Non-Cooperation Movement (1920-22), the Civil Disobedience Movement (1930-34), and the Quit India Movement (1942-45). The trade unions also played a vital role in the formation of the Indian National Congress and the Communist Party of India, which became the two major political parties representing the interests of the working class. Some of the prominent trade union leaders of this period were N.M. Joshi, V.V. Giri, S.A. Dange, M.N. Roy, and B.T. Ranadive.

After independence, the trade union movement in India faced new challenges and opportunities, as the country embarked on a path of planned economic development and social welfare. The trade unions had to deal with the issues of industrialization, modernization, globalization, privatization, and liberalization, which affected the working conditions, wages, and rights of the workers. The trade unions also had to cope with the emergence of new forms of employment, such as contract labour, casual labour, and self-employment, which posed a threat to the security and dignity of the workers. The trade unions also had to contend with the fragmentation and politicization of the labour movement, which weakened their unity and bargaining power.

Despite these challenges, the trade union movement in India has made significant contributions to the advancement of the working class and the society at large. The trade unions have been instrumental in securing various labour laws and policies, such as the Minimum Wages Act (1948), the Industrial Disputes Act (1947), the Employees’ State Insurance Act (1948), the Employees’ Provident Funds and Miscellaneous Provisions Act (1952), the Maternity Benefit Act (1961), the Payment of Bonus Act (1965), the Contract Labour (Regulation and Abolition) Act (1970), and the Trade Unions Act (1926). The trade unions have also been involved in various social and political movements, such as the anti-emergency movement (1975-77), the anti-corruption movement (2011-12), and the farmers’ movement (2020-21). The trade unions have also been engaged in various educational, cultural, and welfare activities, such as running schools, colleges, libraries, hospitals, cooperatives, and sports clubs.

Important Definitions

The Trade Unions Act, 1926 is the main legislation that governs the registration, regulation, and recognition of trade unions in India. The Act defines some important terms related to trade unions, such as:

Trade union: 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.

Workman: Any person who is employed in any industry to do any skilled or unskilled manual, supervisory, technical, or clerical work for hire or reward, whether the terms of employment be express or implied, and includes any person employed in any industry who has been dismissed, discharged, or retrenched in connection with, or as a consequence of, a dispute.

Employer: Any person who employs, whether directly or through another person, or whether on behalf of himself or any other person, one or more workmen in any industry.

Trade dispute: Any dispute between employers and workmen or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or the conditions of labour, of any person.

Registrar: A person appointed by the appropriate government to perform the functions of a Registrar of Trade Unions under the Act.

Appropriate government: In relation to trade unions whose objects are not confined to one state, the Central Government, and in relation to other trade unions, the State Government.

Registration of Trade Unions:

The Act provides for the voluntary registration of trade unions with the Registrar of Trade Unions. The registration of a trade union confers legal status and certain rights and privileges on the trade union. The procedure for registration of a trade union is as follows:

Any seven or more members of a trade union may, by subscribing their names to the rules of the trade union and by otherwise complying with the provisions of the Act, apply for registration of the trade union under the Act.

The application for registration shall be made to the Registrar of the state in which the head office of the trade union is situated.

The application shall be accompanied by a copy of the rules of the trade union and a statement of the following particulars:

The names, occupations, and addresses of the members making the application;

The name of the trade union and the address of its head office;

The titles, names, ages, addresses, and occupations of the office-bearers of the trade union;

The number of members of the trade union as on the date of application;

The name and address of the bank where the funds of the trade union are deposited;

The name and address of the auditor of the trade union.

The Registrar, on being satisfied that the trade union has complied with all the requirements of the Act and the rules made thereunder, shall register the trade union by entering in a register, to be maintained in such form as may be prescribed, the particulars relating to the trade union contained in the statement accompanying the application for registration.

The Registrar shall issue a certificate of registration to the registered trade union, which shall be conclusive evidence that the trade union has been duly registered under the Act.

The Registrar may refuse to register a trade union if:

The application for registration is not made in accordance with the provisions of the Act and the rules made thereunder;

The trade union has not adopted the rules prescribed by the Act and the rules made thereunder;

The name of the trade union is identical with that of any other existing trade union, or is likely to mislead the public as to its identity;

The main object of the trade union is unlawful.

The Registrar shall communicate to the applicants the reasons for refusal of registration within two months from the date of receipt of the application.

Any person aggrieved by the refusal of the Registrar to register a trade union may appeal to the appropriate government within sixty days from the date of such refusal.

The appropriate government may, after giving an opportunity of being heard to the applicants and the Registrar, pass such order as it may deem fit, confirming or setting aside the refusal of the Registrar.

The order of the appropriate government shall be final and shall not be questioned in any court.

Rights and Liabilities of Registered Trade Unions

The Act confers certain rights and liabilities on the registered trade unions, such as:

The registered trade union shall enjoy perpetual succession and a common seal and shall have the power to acquire and hold both movable and immovable property and to contract, and shall by the said name sue and be sued.

The registered trade union shall have the right to constitute a separate fund for political purposes, from which payments may be made for the promotion of the civic and political interests of its members.

The registered trade union shall have the right to amalgamate with any other registered trade union, subject to the consent of not less than one-half of the total number of its members and the approval of the Registrar.

The registered trade union shall have the right to change its name, subject to the consent of not less than two-thirds of the total number of its members and the approval of the Registrar.

The registered trade union shall have the right to make rules for the regulation of its affairs, subject to the provisions of the Act and the rules made thereunder.

The registered trade union shall have the right to elect its office-bearers and to remove them from office, subject to the provisions of its rules and the Act and the rules made thereunder.

The registered trade union shall have the right to inspect the books of account and the list of members of any other registered trade union, subject to the provisions of the Act and the rules made thereunder.

The registered trade union shall have the right to represent the interests of its members in any industrial dispute or in any matter relating to the employment or non-employment or the terms of employment or the conditions of labour of any person.

The registered trade union shall have the right to affiliate with any other registered trade union or any federation of trade unions or any international trade union organization, subject to the provisions of its rules and the Act and the rules made thereunder.

The registered trade union shall have the right to enjoy immunity from civil and criminal liability for any act done in contemplation or furtherance of a trade dispute, subject to the provisions of the Act and the rules made thereunder.

The registered trade union shall also have certain liabilities, such as:

The registered trade union shall be liable to maintain proper books of account and to submit annual returns to the Registrar,

Collective Bargaining

Collective bargaining is a process of negotiation between the representatives of the employers and the employees, with a view to reach an agreement on the terms and conditions of employment and labour relations. Collective bargaining is one of the main functions and objectives of trade unions, as it enables them to protect and promote the interests and rights of their members. Collective bargaining also helps to maintain industrial peace and harmony, by resolving the conflicts and disputes between the parties through mutual consent and compromise.

The Trade Unions Act, 1926 does not expressly provide for the recognition of trade unions for the purpose of collective bargaining, but it implies such recognition by conferring certain rights and privileges on the registered trade unions, such as:

The right to represent the interests of its members in any industrial dispute or in any matter relating to the employment or non-employment or the terms of employment or the conditions of labour of any person.

The right to enjoy immunity from civil and criminal liability for any act done in contemplation or furtherance of a trade dispute.

The right to constitute a separate fund for political purposes, from which payments may be made for the promotion of the civic and political interests of its members.

The Trade Unions Act, 1926 also provides for the registration of agreements relating to the settlement of industrial disputes between the employers and the employees, which are binding on the parties to the agreement and the members of the trade unions which are parties to the agreement. The Act also provides for the cancellation of such agreements by the Registrar, if he is satisfied that the agreement was obtained by fraud or coercion, or that the agreement has ceased to be fair and reasonable.

The Trade Unions Act, 1926 also empowers the appropriate government to make rules for the regulation of the relations between employers and workmen, and for the prevention and settlement of industrial disputes. The appropriate government may also appoint conciliation officers, boards of conciliation, courts of inquiry, labour courts, industrial tribunals, and national tribunals, to assist in the process of collective bargaining and to adjudicate upon the matters of industrial disputes.

The Trade Unions Act, 1926 also lays down certain principles and guidelines for the conduct of collective bargaining, such as:

The parties to the collective bargaining should act in good faith and with a sincere desire to reach a fair and reasonable settlement.

The parties to the collective bargaining should respect the autonomy and independence of each other and refrain from any interference or coercion in the internal affairs of each other.

The parties to the collective bargaining should avoid any unilateral action or violation of the terms of the existing agreement or award, which may provoke or aggravate the industrial dispute.

The parties to the collective bargaining should abide by the procedure and machinery provided by the Act and the rules made thereunder, for the prevention and settlement of industrial disputes.