Trade Unions Act, 1926

The Trade Unions Act provides for registration of trade unions with a view to render lawful organisation of labour to enable collective bargaining. It also confers on a registered trade union certain protection and privileges. The Act lists the provisions to be followed for registration of a trade union, its legal rights, and duties upon registration and also includes a chapter on penalties in case of diversion from their duties.  

Chapter II of the Act deals with registration of trade unions, under Section 3 to Section 14, which states that minimum seven workers of an establishment (or seven employers) can form a trade union and apply to the Registrar for its registration under Section 4.  

Chapter III lays down the rights and liabilities of registered trade unions, from Section 15 to Section 28. Section 15 deals with the objects on which general funds may be spent, such as, payment of salaries, allowances and expenses of the Trade Union, conduct of trade disputes on behalf of the Trade Union or any member thereof, and the compensation of members for loss arising out of trade disputes, etc. Section 16 of the Act states that- 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 interests of its members. The Chapter includes several provisions describing the rights and duties of trade union, such as, immunity from civil suit in certain cases (Section 18), the right to inspect books of Trade Union (Section 20), and the dissolution of a Trade Union (Section 27). 

The full text of the law and its provisions can be accessed here: