Introduction/Background

The IR Code, 2020 has brough a significant change in labor jurisprudence in India, it codified all the existing law to form a single compilation of law to avoid the confusion created due to multiple laws on the same issue.

In recent times, there is huge demand of development of a more balanced system of law where both employer and employee harmoniously settle dispute together. The law must not lean towards one side or can be a pro-labor code, balancing the interests of both is the need of the hour. We can say that IR Code, 2020 is one such step towards the goal. There are various provisions given in IR Code, 2020 where both employer and employee can settle the dispute amicably. This article is based on need of Trade Union and how much insights is provided under IR Code, 2020.

Trade Union is a union of workers which is formed in order to protect the interest of workers. Before IR Code, 2020, there was The Trade Union Act, 1926 which was providing a special provision for Trade Union, the Union registered under that Act was ensured certain rights and immunities which was the perk of registration. However, the registration was not mandatory under the Act, but it is more favorable for the members of Union to get it registered to enjoy rights and privileges.

Carrying the legacy of Act, the IR Code, 2020 also seems to provide the similar rights and immunities to the Trade Union. According to IR code, 2020, Trade Union means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workers and employers or between workers and workers, 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 Union.[i] Trade Union plays a very important role in the development of a healthy labor environment in Industrial establishments. There are multiple duties performed by the Trade Unions.

In India, labor unions have been preoccupied with safeguarding workers’ interests. In establishing labor standards, the government collaborated with labor unions. Unions grew stronger as a result of this process and began asserting themselves by organizing a significant number of strikes at both the national and enterprise levels, rather than by contributing to economic performance.

Since 1991, the globalization trend has had a negative impact on labor. For many years, there has been an increase in the number of unemployed people. Even in the formal sector, the majority of the increased jobs have been informal. The enterprise’s aim for a lean and mean organization has resulted in a workforce reduction and the substitution of permanent employees with casual or contract labor. The employer is also merrily into union-bashing or resisting the formation of unions and taking a tough posture in collective bargaining.[ii]

Chapter III of the IR code specifically deals with the Registration, criteria, cancellation of registration, challenge of cancellation, incorporation of registered trade union, and Recognition of negotiating union or negotiating council, immunity from civil suit in certain cases, etc.  

It is interesting to see the role of Trade Union as stated under the IR Code, 2020. We will look into the detailed provision of IR Code and its importance in current labor jurisprudence.

Process of registration of a Trade Union under IR Code

Sec. 5 of IR Code[iii] provides that the state government may by notification appoint a person to be the Registrar of trade union, and other person as Additional Registrar of Trade Unions, Joint Registrar of Trade Unions and Deputy Registrar of Trade Union, who shall exercise all powers notified by the state government. Sec. 6 of the code[iv] provides the criterial for registration:

1. Any seven or more members of a Trade Union may, by subscribing their names to the rules of Trade Union and complying with the provision of the code, can apply for registration of Trade Union.
2. At least 10% or 100 members, whichever is less, should be engaged or employed with such Trade Union on the date of making of application for registration.
3. The registration will not be invalid if some of the members not exceeding half of the total number of person who made the application, cease to be members of the trade union.
4. A trade union must have all the time at least 10% of total members of 100 members, whichever is less, with a minimum limit of 7 connected to the Trade Union.

There are certain rules of a trade union which it needs to mandate in order to successfully register[v], such as:

1. Name of TU;
2. The whole of the objects for which the TU has been established;
3. The whole of the of the purposes for which the general funds of the TU shall be applicable;
4. All of which purposes shall be purposes to which such funds are lawfully applicable under this Code;
5. The maintenance of list of members of TU and adequate facilities for the inspection thereof by the office-bearers and members of TU;
6. The admission of ordinary members and officer bearers;
7. Payment of a subscription as specified by members of TU as prescribed;
8. The condition under which the member of a TU shall entitled to benefit assured by rules and fines or forfeiture as may be imposed; the annual general body meeting of the members of the TU;
9. The business to be transacted at such meeting including the election of office-bearers of the TU;
10.  The manner in which the member of the executive and the other office bearers of the TU shall be elected once in a period of every three years and remove, and filling of casual vacancies;
11. The safe custody of funds of TU, an annual audit and manner of such audit as prescribed, the manner of amendment of rules; the process of dissolution of TU. 

Sec. 8 of IR code[vi], a TU can make an application for registration, alteration of name and procedure.

Cancellation of Registration

Sec. 9 of IR code[vii] provides the process of registration and cancellation of registration. The provision states that if the Registrar is satisfied that all the mandates and requirements have been duly fulfilled by the registrar then it should register the same by entering the name in the register.

There are several cases on the registration of a trade union, in ACC Rajanka Lime Stone Quarries Mazdoor Union v. Registrar of Trade Union[viii], the petitioner submitted an application to the registrar for the registration of Trade Union fulfilling all the requirements specified in the Act. The application letter was sent on 31^st July 1957 to registrar which was received on 3^rd August 1957. There was delay by the registrar in cancelling or registering the said trade union. It was held by the HC that it is the statutory duty of the Registrar to register a Trade Union.

Under Sec. 10 of IR Code[ix], any aggrieved person may challenge the non-registration or cancellation of the application in the Tribunal within prescribed time. Tribunal has been given the discretion to accept the appeal even in the case of expiry of limitation period if appellant satisfies the Tribunal that there was reasonable cause for delay. After hearing both the parties, the Tribunal may dismiss the appeal or pass an order directing the Registrar to register the Trade Union and to issue a certificate of registration.

It is to be noted that all the communications and notices to a registered Trade Union shall be sent, in such manner as may be prescribed, to the address of the head office of the TU. It is the duty of TU to inform the Registrar if the members of such TU fall below 10%. Also, in case of change in particulars given by it in its application for registration and in its constitution or rules, it needs to be communicated to the Registrar.

Benefits of Registration

Sec. 12 of IR Code[x] provides that every registered TU is a separate legal entity. It has the power to sue or get sued. There is perpetual succession in the membership of TU. It can acquire and hold both movable and immovable property.

Further, immunity is given to the TU from civil suit in respect of any act done in contemplation or furtherance of an industrial dispute to which as member of TU is a party on the ground only that such act induces some other person to break a contract of employment or that it is an interference with the trade, business, or employment of some other person. It is also stated in the provision that the TU is immune from any suit or other legal proceeding in any civil court of any tortuous act done in contemplation or furtherance of an industrial dispute by an agent of the TU.[xi]

TU cannot be made liable for the offences of criminal conspiracy under 120B of IPC in respect of any agreement made between the members for the purpose of furtherance of objects of the TU specified in sec. 17, unless such agreement is an agreement to commit offence.

Recognition of a Negotiating Union

Under sec. 14 of the IR Code[xii] it is given that there shall be a negotiating union in an industrial establishment having registered TU for negotiating with employer of the industrial establishment. Clause (2) provides that when only one TU is registered in an industrial establishment, then employer shall accept such TU as sole negotiating union of the workers.

Clause (3) provides when there are more than one TU, the one with 51% or more workers on muster roll shall be recognized and act as sole negotiating union of the workers. Clause (4) provides that when there is no TU having fifty-one percent of workers on muster roll. Then, representative of such TU consisting 20 percent of workers shall constitute negotiating union and that shall represent each 20% of workers.

In North Central Railway Employees Sangh and Ors v. UOI[xiii], In this case, the TU challenged the provision of recognition given in Act of 1971, providing recognition to only one TU and giving it exclusive rights to represent workmen of any undertaking denying the right to a workman to appear or act or to be allowed to represent in any proceedings under the ID Act, 1947 as violative of fundamental right i.e., right to form association.

The SC held that for a valid Negotiation recognition is necessary, if TU is fulfilling the criteria, in that case only recognition can be granted. In other cases, recognition cannot be contested on the grounds of violation of Article 19(1) (c).

Conclusion

Trade Unions under IR Code, 2020 has been made to promote the idea of labour welfare in India. We can see that in multiple ways TU can secure the rights of the labours. It has been given multiple rights and immunities under the IR Code. The code provides detailed provision for registration, cancellation of registration and appeal against such cancellation of TU. The need of a code is to compile all the laws to avoid confusion. Previously, TU Act, 1926 was there which was repealed by this Code. Therefore, IR Code, 2020, is made keeping the view the modern needs, and the TU helps to maintain the Industrial peace and good employee-employer relationship.

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[i] Industrial Relation Code, 2020, § 2 (zl).

[ii] J.S. Sodhi, Trade Unions in India: Changing role and perspective 49 SRCHR 169 2013.

[iii] Industrial Relation Code, 2020, § 5.

[iv] Industrial Relation Code, 2020, § 6.

[v] Industrial Relation Code, 2020, § 7.

[vi] Industrial Relation Code, 2020, § 8.

[vii] Industrial Relation Code, 2020, § 9.

[viii] ACC Rajanka Lime Stone Quarries Mazdoor Union v. Registrar of Trade Union AIR 1958 Pat 470.

[ix] Industrial Relation Code, 2020, § 10.

[x] Industrial Relation Code, 2020, § 12.

[xi] Industrial Relation Code, 2020, § 16.

[xii] Industrial Relation Code, 2020, § 14.

[xiii] North Central Railway Employees Sangh and Ors. v. UOI, C.M.W.P No. 5872 of 2008.