Amendment to the Trade Unions Act, 1926 to Make Provisions Regarding (Download PDF)

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The Union Cabinet approved amendment to the Trade Union Act, 1926, paving way for the central government to recognize trade unions. An Act to provide for the registration of Trade Unions and in certain respects to define the law relating to registered Trade Unions

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Purpose of the Amendment

The move is expected to bring in transparency in tripartite discussions besides checking on arbitrary nominations and reducing litigations.

About the Amendment

  • The amended legislation will be tabled in Parliament and once passed labour ministry will issue new rules and regulations prescribing the manner of recognition of these trade unions.

  • The amendment provides for insertion of section 10A in the principal Act to power centre and state governments to recognize trade unions and federation of trade unions at central as well as state level.

About Trade Unions Act, 1926

  • Whereas it is expedient to provide for the registration of Trade Unions and in certain respects to define the law relating to registered Trade Unions

  • Whether temporary or permanent, primarily for the purpose of regulating the relations between workers and employers or between workers for imposing restrictive conditions on the conduct of any trade or business and includes the federations of two or more trade unions as per Sec. 2 Trade Unions Act, 1926.

  • The Indian Trade Unions Act, 1926 provides for only registration of trade unions basis on which there are 12 central trade unions.

Benefits:

  • Recognition of Trade Unions at Central and State level;

  • Ensure true representation of workers in the tripartite bodies;

  • Check on the arbitrary nomination of workers’ representatives by the Government; and

  • Reduce litigations and industrial unrest.

- Published/Last Modified on: March 7, 2019

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