Introduction: India’s First Law for Worker Power

Enacted in 1926 during British rule, the Trade Union Act was a game-changer — legalizing unions for the first time. Born from Bombay textile strikes and ILO influence, it gave workers legal voice, immunity, and bargaining power.

Constitutional Backing: Article 19(1)(c) – Right to form associations ILO Link: Inspired by Convention 87 (Freedom of Association) 2025 Status: Still in force; core provisions retained in IRC 2020

Real Impact: From Tata Steel to Ola drivers, unions use this Act to fight for bonuses, safety, and fair pay.

7 Key Features of Trade Union Act, 1926

1. Legal Definition → Any group formed to regulate worker-employer relations

2. Optional Registration → But mandatory for legal status

3. Minimum 7 Members → Or 10% of workforce (max 7)

4. Civil & Criminal Immunity → For bona fide union activities

5. Political Fund → Voluntary only

6. Amalgamation → 50%+ members can merge unions

7. Penalties → Up to ₹500 for false returns or fund misuse

Key Sections Explained: Short, Sharp & Real Examples

Sec 2(h): What is a Trade Union?

→ Any combination to regulate relations between workers or employers. Example: Tata Workers Union negotiating bonus → YES. WhatsApp group of gig riders → NO (not formal).

Sec 4–6: Registration Process

→ Apply to Registrar with 7 members, rules, and ₹500 fee. Example: Bidi Workers Union (MP) registered in 15 days → opened bank A/c, filed case.

Sec 8: Certificate = Legal Birth

→ Registrar issues certificate → union becomes legal entity. Example: “BHEL Workers” denied for name clash with “BHEL Employees” → appealed & won.

Sec 13: Legal Personality

→ Union can own property, sue, be sued. Example: Union buys land for office → title in union name, not individuals.

Sec 15: General Fund Usage

→ For strike pay, legal aid, welfare. Allowed: Pay lawyer for dismissed worker. Not Allowed: Personal loans to secretary.

Sec 16: Political Fund

→ Separate & voluntary. Example: CITU collects ₹2 extra → funds election. Non-payers still full members.

Sec 17: Civil Immunity

→ No suit for legitimate union acts. Example: Union boycotts canteen over hygiene → no defamation case.

Sec 18: Criminal Immunity

→ No “conspiracy” for lawful objectives. Example: Leaders block gate during legal strike → no arrest.

Sec 28: Recognition

→ Via state rules or IRC 2020 (50%+ verified members). Example: Maharashtra union with 55% support → sole bargaining agent.

2023 Real Case: Ola Drivers Association (Bengaluru) → 8 members → registered → negotiated 18% surge hike.

6 Landmark Judgments: Shaping Union Law

1. Registrar v. M.T. Chandran (1965) → 7 members enough even if some leave later. → Helped small factory unions

2. Bokaro Steel Workers Union (1973) → Political fund must be voluntary → Stopped forced deductions

3. Rangaswami v. Registrar (1962) → Refusal must be reasoned → judicial review → Protected union names

4. Tamil Nadu NGO Union (1989) → Govt employees can form unions → but no strike → Applies to banks, railways

5. Balmer Lawrie Workers (1984) → Outsiders (non-workers) → up to 50% office-bearers → Lawyer as union secretary = OK

6. NE Frontier Railway v. Vijaykumar (2021) → Unregistered union → no court standing → Register = Power

Conclusion: 1926 Act in 2025 – Still the Worker’s Shield

The Trade Union Act, 1926 is India’s union DNA — turning 7 workers into a legal force.

2025 Reality:

• IRC 2020 adds Aadhaar verification & sole negotiating unions

• Only 16% unions registered (DGLB 2023)

• Gig workers struggle with “worker” tag

Future Fix:

• Ratify ILO C87 & C98

• Extend to platform workers

• Simplify registration via e-Shram

Bottom Line: From Jamshedpur mills to Gurgaon factories, the 1926 Act remains worker voice, legally armed.