ir acts

29
INDUSTRIAL LAWS IN INDIA 1. The Industrial Disputes Act, 1947 2. The Factories Act, 1948 3. The Trade Unions Act, 1926 4. The Minimum Wages Act, 1948 5. The Payment of Wages Act, 1936 6. Industrial Employment (Standing Orders) Act, 1946 7. The Payment of Bonus Act, 1965 8. The Equal Remuneration Act, 1976 9. The Workmen’s Compensation Act, 1923 10. The Maternity Benefit Act, 1961 11. The Employees State Insurance Act, 1948 12. The Payment of Gratuity Act, 1972 13. The Employees P.F & Misc. Provision Act, 1952 14. The Apprentices Act, 1961 15. Employment Exchange (Compulsory Notification of Vacancies) Act, 1959

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INDUSTRIAL LAWS IN INDIA

1. The Industrial Disputes Act, 19472. The Factories Act, 19483. The Trade Unions Act, 19264. The Minimum Wages Act, 19485. The Payment of Wages Act, 19366. Industrial Employment (Standing Orders) Act, 19467. The Payment of Bonus Act, 19658. The Equal Remuneration Act, 19769. The Workmen’s Compensation Act, 1923 10. The Maternity Benefit Act, 1961

11. The Employees State Insurance Act, 1948 12. The Payment of Gratuity Act, 1972 13. The Employees P.F & Misc. Provision Act, 1952 14. The Apprentices Act, 1961 15. Employment Exchange (Compulsory Notification of Vacancies) Act, 1959

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INDUSTRIAL DISPUTES ACT, 1947

As per section 2 (k) of Industrial Disputes Act1947, Industrial Dispute is defined 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 employment or with the condition of labour of any person

OBJECTIVES

1. Promotion of measures for securing and preserving amity and good relation between the employers and workers

2. Investigation and settlement of industrial disputes3. Prevention of illegal strikes and lock–outs4. Relief to workmen in the matter of lay–off and retrenchment5. Promotion of collective bargaining6. Ameliorate the condition of workmen

FEATURES

1. This act extends to the whole of India including the state of Jammu and Kashmir2. It encourages arbitration over the disputes between employers and employees3. It provides for setting up of works committees as machinery for mutual

consultation between employers and employees to promote cordial relation4. This Act paved the way for setting up permanent conciliation machinery at

various stages having definite time limits for conciliation and arbitration5. This Act emphasis on compulsory adjudication besides conciliation and

voluntary arbitration of Industrial Disputes6. The Act empower the Government to make reference of the dispute to an

appropriate authority ie, Labour court, Industrial tribunal and National tribunal depending upon the nature of the dispute either on its own or on the request of the parties

7. The right to strike by the workers and lock–out by the employees has been subjected to the restriction as laid down in the Act The act prohibits strikes and lock–outs during the pendening of conciliation and arbitration proceedings and in public utility service and it empowers government to take adequate action

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Terms under Industrial Disputes Act, 1947

APPROPRIATE GOVERNMENT – Sec 2 (a) Refers to Central Government/State Government

ARBITRATOR – Sec2 (aa) Referred as an umpire.It means any person who is appointed to determine differences and disputes between two parties.

WAGES – Sec 2(rr)It means all remuneration capable of being expressed in terms of money, if the term of employment were fulfilled, be payable to a workman in respect of his employment or of work done in such employment.

Payments included in wages

1. Dearness allowance.2. Value of any house accommodation of supply of light, water, medical

attendance, concessional supply of food grain3. Travelling concessions4. Any commission payable on the promotion of sales or business or both

Payments excluded from the definition of wages

1. Bonus2. Any contribution paid or payable by the employee to any pension fund or

provident fund3. Any gratuity payable on the termination of service

INDUSTRY- Sec 2(i) Industry means any systematic activity carried on by co-operation between an employer and his workmen whether such work men are employed by such employee directly or by or through any agency including a contractor for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes with a motive to make any gain or profit; not merely spiritual or religious.

Activities which doesn’t come under the category of industry

1. Any agricultural operation except where such agricultural operation is carried on in an integrated manner with any other activity2. Hospitals or Dispensaries3. Educational, scientific, research or training institution

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4. Institution owned or managed by organization engaged in charitable, social services5. Khadi or village industries6. Any activity of the government relatable to the sovereign function of the Government including activities related to defence, research, atomic energy etc7. Any domestic service8. Any activity being a profession practiced by an individual or body of individuals which is less than ten in number9. Any activity carried on by a co-operative society WORKMEN - Sec 2(s)

Means 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 the terms of employment be express or implied and there should be a contractual relationship between master and servant

INDUSTRIAL ESTABLISHMENT- Sec 2(ka)

Means an establishment or undertaking in which industry is carried on

PUBLIC UTILITY SERVICE- Sec 2(n)

Means any industry specified in the First Schedule of Industrial Disputes Act, 1947, can be declared as Public Utility Service by government through a notification in the official Gazette for a fixed period (not more than six month for the first instance)

Industries which may be declared to be Public Utility Service (First Schedule)1. Transport for the carriage of passengers or goods by land or water.2. Banking3. Cement4. Coal5. Cotton Textiles6. Food tuffs7. Iron and steel8. Defence establishments9. Service in hospitals and dispensaries

10. Fire brigade service 11. Indian security press. 12. Copper, Led, Zinc, Pyrites, Phosphosite, Magnesite and Iron Ore mining 13. Service in any Oil field 14. Service in the Uranium Industry 15. Security Paper mill, Hoshangabad 16. Currency Note press 17. Manufacture or production of oils 18. Service in the International Airport Authority of India 19. Service in Bank Note press, Dewas.

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SETTLEMENT – Sec 2(p)

Means A written agreement between the employer and workmen arrived in the course of conciliation proceeding provided;

Such agreement has been signed by the parties there to in the manner prescribed

A copy has been sent to an officer authorized by the appropriate government and the conciliation officer.

Authorities under Industrial Dispute Act, 1947

1. Works Committee (Sec 3)2. Conciliation Officers (Sec 4)3. Board of Conciliation (Sec 5)4. Court of Inquiry (Sec 6)5. Labour Court (Sec 7)6. Industrial Tribunal (Sec7-A)7. National Tribunal (Sec7-B)

1. WORKS COMMITTEE (Sec-3)

* Constituted based on appropriate Government order

* Applicable to industrial establishment in which 100 or more workmen are employed on any day in the preceeding 12 months * Consists of representatives of employees and workmen engaged in the establishment.

* Number of workmen representatives shall not be less than the number of employer’s representatives

* Representatives of workmen are selected in consultation with Trade union

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DUTIES

1. To promote measures for securing and preserving amity and good relations between the employer and the workmen

2. To comment upon matters of their common interest or concern.

The recommendations of the works committee are not binding and are purely of advisory of nature

2. CONCILIATION OFFICERS (Sec 4)

The appropriate government, by notification in the official Gazette appoints a specific number of persons as it think fit to be as conciliation officers

Conciliation officer may be appointed for a specified area or for specified industries in specified area either as permanent or for a limited period

A conciliation officer shall be deemed to be as a public servant as per Sec. 21 of Indian penal code 1860

DUTIES

1. When any industrial disputes exist, the conciliation officer should hold conciliation proceedings in a prescribed manner without delay to have right settlement.

2. Whether settlement is reached or not, the conciliation officer must submit the report within 14 days of the commencement of the conciliation proceedings or within the date fixed by the appropriate government 3. If the report submitted in satisfied to the appropriate Government, it may or may not refer the dispute to any authority under the Act. If the Government is not making any reference, it should record and communicate the reason to the contending parties

4. The duty of a conciliation officer is administrative and not judicial

3. BOARD OF CONCILIATION (Sec5)

The appropriate Government by a notification in the official Gazette constitutes a Board of Conciliation for promoting the settlement of an industrial dispute

The Board consists of a Chairman and two or four other members, as the appropriate government thinks fit

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The Chairman shall be an independent person; unconnected with the dispute

The other members shall be persons appointed in equal number to represent the parties to the dispute

The person appointed to represent a party shall be appointed on the recommendation of the party

The appropriate Government appoints a fit person as it thinks, if any party fails to make a recommendation within a prescribed period

A Board of Conciliation can act only when a dispute is referred to it by the Government

DUTIES

1. When a dispute has been referred to a Board, it will investigate the matter affecting the merits and right settlement of the dispute without delay

2. Whether settlement is reached or not, the Board must submit the report within two months of the date on which the dispute was referred to it or within a shorter period fixed by the appropriate Government

3. If no settlement is arrived, the Government may refer the dispute to the labour court, Industrial Tribunal or National Tribunal. If the Government is not making any reference, it should record and communicate the reason to the contending parties.

4. The time for submission of report may be extended by such period as may be agreed to in writing by all the parties to the disputes

5. The report of the Board shall be in writing and shall be signed by all the members of the Board. Members of the board can record note of dissent on the report

6. The report submitted shall be published by the appropriate Government within 30 days from the receipt

7. A Board of Conciliation can only try to bring about a settlement. It has no power to impose settlement on the parties to the dispute

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4. COURT OF INQUIRY (Sec 6)

The appropriate Government, by notification in the official Gazette, constitutes a Court of Inquiry in to any matter relevant to an Industrial dispute

A Court of Inquiry consists of one independent person or of number of independent persons as the appropriate Government may think fit

Court of Inquiry consists of two or more members, one of them shall be appointed as Chairman

The Court of Inquiry can act under a prescribed quorum; even at the absence of Chairman

If the service of the chairman is ceased by the Government through notification, the court shall not act until a new chairman has been appointed

All members of the court shall be deemed to be public servants under Sec 21 of the Indian penal code 1860

Every inquiry by a court shall be deemed to be judicial proceeding

A Court of Inquiry has same powers as a civil court under the Code of Civil Procedure 1908

The court has the right to appoint one or more persons having special knowledge of the matter of the dispute as an advisor

DUTIES

1. A Court shall inquire into the matters referred to it and report to the appropriate government within a period of 6 months from the commencement of the inquiry

2. The report of the court shall be in writing and signed by all the members of the court. Members are free to record their dissent

3. The report submitted shall be published within a period of 30 days of its receipt by the Government

Court of Enquiry is a fact finding body and is not required to make recommendation for the settlement of an industrial dispute. It has no power to impose any settlement upon the parties

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5. LABOUR COURT (Sec 7)

The appropriate Government, by notification in the Official Gazette constitutes one or more labour courts for adjudication of industrial disputes relating to a matter in the Second Schedule

Matter specified in the Second Schedule

1. The propriety or legality of an order passed by an employer under the standing orders

2. The application and interpretation of standing orders3. Discharge or dismissal of workmen including reinstatement of, grant of relief to,

workmen wrongfully dismissed4. Withdrawal of any customary concession or privilege5. Illegality of a strike or lock–out

A labour court consists of one person only to be appointed by the appropriate Government

A person shall not be qualified for appointment as presiding officer of a labour court unless

a) He is / has been a Judge of a High Court b) He has been as a District Judge /Additional District Judge for a period not less than three years c) He has held any judicial office in India for not less than seven years

No person shall be appointed / continue in office of the presiding officer of a labour court if

i. He is not an independent personii. He has attained the age of 65 years

DUTIES 1. Adjudicate upon the industrial disputes relating to any matter specified in the Second Schedule

2. When an industrial dispute has been referred to a labour Court for adjudication, within the specified period, it should submit award to the appropriate Government

3. It shall be published in such manner as the appropriate Government thinks fit within a period of 30 days from the date of its receipt by the appropriate Government

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6. INDUSTRIAL TRIBUNAL (Sec7-A)

The appropriate Government by notification in the official Gazette , constitute one or more industrial tribunals for the adjudication of industrial disputes relating to any matter specified in Second or Third Schedule

Matters specified in Third Schedule

1. Wages, including the period and mode of payment2. Compensatory and other allowances3. Hours of work and rest intervals4. Leave with wages and holidays5. Bonus, Profit sharing, Provident fund and Gratuity6. Shift working7. Classification by grades8. Rules of discipline9. Rationalisation8. Retrenchment of workmen

10. Closure of establishment

The Tribunal consists of one person to be appointed by the appropriate Government

A person shall not be qualified for appointment as the presiding officer of an Industrial Tribunal unless

a) He is/ has been a Judge of a High Courtb) He has been a District Judge / Additional District Judge for a period of three years

No person shall be appointed to or continue in office of a presiding officer if

a) He is not an independent person.b) He has attained the age of 65 years.

DUTIES

1. It shall submit its award to the appropriate Government within a specified period if an industrial dispute is referred to an Industrial Tribunal

2. The award shall be in writing and shall be signed by its presiding officer3. The award shall be published by the appropriate government within a period of 30

days in a manner as the appropriate government thinks fit4. As it is a quasi – judicial body, it must serve notice upon the parties to the reference

by name before making any award

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The appropriate government may interfere in the industrial dispute even after it is referred to the Industrial Tribunal under following grounds

There is a lack of good faith There is a victimisation or unfair labour practice The finding is completely baseless

7. NATIONAL TRIBUNAL (Sec7-B)

The Central government ,by notification in the official Gazette constitute one or more National Industrial Tribunals for the adjudication of industrial disputes :

a) Involving questions of national importanceb) Which are of such a nature that industries are more than one state are likely to be interested in, or affected by, such disputesc) Matters appearing in Second and Third schedule

A National Tribunal consists of one person to be appointed by Central Government

A person shall not be qualified for appointment as a presiding officer of a National Tribunal unless he is / has been a Judge of High Court

No person shall be appointed to ,or continue in the office of the presiding officer of a National Tribunal if

a) He is not an independent personb) He has attained the age of 65 years

The Central Government can appoint two persons as assesors to advice the National Tribunal in the proceedings.

DUTIES1. When an industrial dispute is referred to the National Tribunal for

adjudication, it shall submit its award to the appropriate government

2. The award shall be in writing and shall be signed by the presiding officer of the National Tribunal

3. It shall publish the award within a period of 30 days from the date of its receipt by Central Government

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INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946

Replacement of Industrial employment contracts, 1944.

This Act defines condition of employment and to make them known to workmen so that arbitrariness could be eliminated from the workplace.

Features

1. Defining conditions of employment and to make these known to the workmen concerned

2. Regulating standards of conduct of employers and employees and to improve workplace relation

3. Maintenance of proper discipline and detailing the principles and procedures for this

4. Provision of grievance redressal arising out of unfair treatment

5. Provision of statutory sanctity to standing orders

6. Clarifying misconduct

Matters that are expected to be included in standing orders

a. Classification of employees into permanent, temporary, probationer, trainee, casual, badly etc

b. Workmen’s registers, cards, ticketsc. Periods of work, shifts, holidays, hours of workd. Pay days, Wage ratee. Entrance, exits, procedures during entrance and exit, attendance and late

comingf. Temporary stoppages, Maintenance schedules.g. Close and reopening of entire establishment and procedures during such

Closureh. Procedures for application for leavei. Procedures for termination of employment and notice by employer and

employee j. Acts or omission which constitutes misconduct. k. Procedures of redressal of grievances. l. Procedures for suspension, dismissal, discharge.

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The Act provides for the submission of draft standing orders by the employer and the procedure of certification to the certifying Officer (Labour Commissioner / Regional Labour Commissioner)

Procedures are also laid down for the amendment or modification of the Standing orders

Framing the rules of employment and validing it can be treated in the process of certification

The process of certification eliminates unilaterism on the part of the employer, for the certifying officer must send the draft rules (submitted by the employer) for approval by the unions /workmen concerned

Once the rules are certified, the employer has the obligation of making them noticeable in the language under stood by the workmen and displays them in prominent location in the work place

Any person aggrieved by the order of the certifying offer can appeal to the concerned appellate authority

The Appellate authority send copies of the appeal decision to the certifying officer, employer, trade Union, within seven days of the receipt

The Appellate authority has no power to set aside the order of the certifying officer. It can only confirm or amend the standing order

Standing order comes into operation on the expiry of 30 days from the date of order issued or on the expiry of seven days from the date on which the copies of the order of appellate authority are sent

The conduct of discipline in the workplace could be guided and subject to these rules and both employer and employee may be fined or punished for violation

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TRADE UNION ACT, 1926.

Background

Until the beginning of the 20th century trade unions were considered as unlawful associations in most of the countries of the world including India.

In 1920, the Madras High Court in a suit filed against the officials of the Madras Textile labour union by Binny & company granted an injunction restraining the union officials from influencing the workmen to break their contracts with the employers by refining to returns to work. The leaders of the trade unions were prosecuted and imprisoned for bonafide trade union activities. In order to protect trade union activity Indian Trade Union Act, 1926 was enacted. The Act was amended in 1929, 1942, 1951, 1960, 1964, 1970, &1974. The amending Act of 1974 deleted the word “Indian” from the title of the Act.

OBJECT. To provide for the registration of trade unions and to define law relating to registered trade unions.

APPLICABILITY It extends to the whole of India.

FEATURES OF THE ACT

1. It provides for the registration of trade unions with the Registrar of the Trade Unions.

2. It provides that every registered trade union shall be a body corporate and shall have perpetual succession and a common seal.

3. It lays down

The rights and liabilities of registered trade unions. Objects on which general finds of trade unions may be spent. Constitution of a separate fund for political purposes, etc.

4. It provides to the registered trade union or any of its office - bearers or members, immunity from civil suits in certain cases.

5. It provides that certain Acts shall not apply to registered trade unions which include

The Societies Registration Act, 1860. The Corporate Societies Act, 1912.

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The Companies Act, 1956.

Registrar –section 2 (f)

Registrar means: A registrar of Trade Unions appointed by the appropriate government and includes any Additional or Deputy Registrar of Trade Unions.

TRADE UNIONS

It means any combination whether temporary or permanent formed primarily for the purpose of regulating the relations between workmen and employers for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions.

MODE OF REGISTRATION.

Any seven or more members of a trade union may apply for registration of a trade union in Form- A to the Registrar appointed for the area. The application shall be accompanied by Schedule I, Schedule II and a byelaw and a resolution authorizing seven ordinary members of the union to make an application for registration of the union, and treasury chalan of Rs.100 remitted as registration fee .(section 4 and 5 with Regulation: 3 &5 )

REGISTRATION CERTIFICATE

On receipt of the application for registration , the Registrar, after making reasonable enquiry issue a Registration Certificate in Form –B (section 8 & with Regulation 6)

CANCELLATION OF REGISTRATION

A certificate of Registration may be withdrawn or cancelled by the Registrar. 1.On an application of a Trade Union in Form –D ,or 2. If the Registrar is satisfied that the certificate is obtained by fraud of mistake or that the trade had ceased to exist or willfully and after notice from the Registrar contravent any provisions of the Act or rules etc (section 10 with Regulations 8 to 12)

APPEAL

Any person aggrieved by any order of the Registrar may appeal within two months to the Civil Court not inferior to the court of an Additional or Assistant Principal Civil Court. (Section 11 with Regulation 13)

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CHANGE OF NAME

Any registered trade union may with consent of not less than 2/3 of its total members may make application in Form –H, for the change of its name (Section -23 with Regulation-16).

AMALGAMATION OF TRADE UNIONS.

Any two or more registered trade unions may become amalgamated together as one trade union provided the votes of at least one half of the members of each or every such trade union entitled to vote and at least 60% of the votes recorded are in favour of the proposal. Notice of the amalgamation shall be sent to the Registrar in duplicate in form – J (section 24 to 26 with Regulation 18)

DISSOLUTION

When a registered trade union is dissolved the notice of dissolution shall be sent to the Registrar in form – K, within 14 days of the dissolution along with the registration certificate (section 27 with Regulation 19)

ANNUAL RETURNS

Every trade union shall send annual returns to the Registrar in triplicate on or before the 1st day of May of the year succeeding the calendar year in Form-L in the case of individual trade unions and in Form-LL in the case of federation of trade unions (Section28 with Regulation 21)

PENALITIES

Offences punishable for the failure to submit returns may extend to Rs.5 and in the case of continuing default with an additional fine which may extend to Rs.5 for each week and shall not exceed Rs.50. 00. Any person who willfully makes, or causes to be made any false entry or any omission from the general statement required by Section 28 etc. shall be punishable which may extend to Rs.500 Registered trade unions, furnishing false information , shall be punishable with fine which may extend to Rs.200 (Section31)

WHO CAN FILE PROSECUTIONS.

1. Registrar2. Persons with the previous sanction of the registrar.3. Aggrieved person under section 32

The complaint shall be filed within six months of the date on which the offence is alleged to have been committed.

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No court inferior to that of a Presidency Magistrate or a Magistrate of First Class shall try any offence under the Act.

AUTHORITIES UNDER THE ACT

1. Registrar of Trade Unions (under section – 3) Labour Commissioner2. Additional Registrar of Trade Unions Additional Labour Commissioner3. Deputy Registrar of Trade Unions Joint Labour Commissioner.

PRIVILEGES OF A REGISTERED TRADE UNION

Section 17 – 21 of the Act provide for the following privileges to a registered trade union.

1. Immunity from Criminal Prosecution (section 17)

No office bearer or member of a registered Trade Union shall be liable to punishment for criminal conspiracy in respect of any agreement made between members for the purpose of furthering any of its objects unless the agreement is an agreement to commit an offence. In other words, if the agreement is for doing an act which is an offence , no immunity can be claimed.

Section 120B(2) of the Indian Penal code provides for punishment for the offence criminal conspiracy. Section 17 of the Trade Unions Act gives immunity to members and office bearers of registered trade unions from criminal conspiracy in connection with trade disputes.

Registered trade unions enjoys certain rights in furtherance of their trade disputes, eg., right to go on strike and for that purpose to persuade their members to abstain from work.

2.Immunity from Civil Suit (Section 18)

This section deals with the immunity from civil proceedings in certain cases, afforded to a registered trade union or its office bearers or members. It lays down that no suit or other legal proceeding shall be maintainable in any Civil Court against any registered trade union or any office bearer member thereof in respect of any act done in contemplation or furtherance of a trade dispute to which a member of the trade union is a party on the ground only that such act induces some other person to break a contract of employement,or that it is interference with the trade, business or employment of some other person or with the right of some other person to dispose of his capital or his labour as he wills.(Section 18(1))

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A registered trade union shall not be liable to a suit or other legal proceeding in any Civil Court in respect of any tortuous act done in contemplation or furtherance of a trade dispute by an agent of the trade union if it is proved that such person acted without the knowledge of ,or contrary to express instructions given by ,the executive of the trade union – Section 18(2) .

3.Immunity from Tortious Liability

A registered trade union shall not be labile in any suit or other legal proceeding in any Civil Court in respect of any tortuous act done in contemplation of furtherance of a trade dispute by an agent of the trade union if it is proved that such person acted without the knowledge of, or contrary to express instructions given by, an executive of the trade union. This provision extends protection to an agent of the trade union from tortuous liability if the acts are done by him in contemplation or in furtherance of trade dispute or procuring a breach of contract. It is to be noted that the breach should be of contract of employment and there should be no unlawful act like defamation, coercion etc.

4. Enforceability of Agreements (section 19)

An agreement between the members of a registered trade union shall not be void or voidable merely by reason of the fact that any of the objects of the agreement is in restraint of trade. But this shall not enable any civil court to entertain any legal proceeding instituted for the express purpose of enforcing or recovering damages for the breach of any agreement concerning the conditions on which any members of a trade union shall or shall not sell their goods, transact business, work employ or be employed.5. Right to Inspect Books of Trade Union

The account books of a registered trade union and the list of the members thereof shall be open to inspection by an office – bearer or member of the trade union at such time as may be provided for in the rules of the trade union .

6. Right of Minors to Membership of Trade Unions (Section-21)

Any person who has attained the age of 15 years may be a member of a registered trade union subject to any rules of the trade union to the contrary , and may, subject as aforesaid , enjoy all the rights of the member and execute all the instruments and give all acquittances necessary to be executed or given under the rules.

Although a person may become a member of the trade union on attaining the age of 15years, he cannot become an office bearer of the Trade Union until he attains the age of 18 years as required by Section 21A of the Act

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RIGHTS AND PRIVILAGES OF A TRADE UNION

The rights and privileges of a registered trade union include;

a) It is a body corporate ,b) It can keep separate fund for political purposesc) It enjoys immunity from criminal conspiracyd) It enjoys immunity from civil suits e) An agreement between the members of a registered trade union not to

accept employment is valid ( not void being agreement in restraint of trade)

f) It has a right to amalgamate to form a larger union or federation of unions

g) Members of the union have a right to inspect its books h) Any person who has attained the age of 15 years can become a member

of the union.

FUNDS OF THE TRADE UNION

General Fund

Section 15 of the Act provides certain restraints against expenditure out of the general funds of a registered trade union. It lays down that the general fund of a registered Trade Union shall not be spent on any other objects than the following, namely:

1. The payment of salaries , allowances and expenses to office- bearers of the Trade Unions;

2. The payment of expenses for the administration of the Trade Union , including audit of the accounts of the general funds of the Trade Union;

3. The prosecution or defence of any legal proceeding to which the Trade Union or any member thereof is a party, when such prosecution of defence is undertaken for the purpose of securing or protecting any rights of the Trade Union as such or any rights arising out of the relations of any member with his employer or with a person whom the member employs;

4. The conduct of trade disputes on behalf of the Trade Union or any member thereof ;

5. The compensation of members for loss arising out of trade disputes;6. Allowances to members for loss arising out of trade dispute;7. The issue of , or the undertaking of liability under , policies of the assurance on

the lives of member or (under) policies insuring members against sickness, accident or unemployment;

8. The provision of education, social or religious benefits for members (including payment of the expenses of funeral or religious ceremonies for deceased member) or for the dependence of members.

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Fund for Political Purpose (Section 16)

A registered Trade Union may constitute a separate fund, from contributions separately levied for or made to that fund, from which payments may be made for the promotion of the civic and political interest of its members, in furtherance of any of the objects specified below:

1. The payment of any expenses incurred , either directly or indirectly by a candidate or prospective candidate for election as a member of any legislative body constituted under the constitution or of any local authority, before , during, or after the election in connection with his candidature or election; or

2. The holding of any meeting or the distribution of any literature or documents in support of any such candidate or prospective candidate; or

3. The maintenance of any person who is a member of any legislative body constituted under the constitution or for any local authority ; or

4. The registration of electors or the selection of a candidate for any legislative body constituted under the constitution or of any local authority; or

5. The holding of political meetings of any kind, or the distribution of political literature or political documents of any kind.