Industrial Relations Code, 2020 - Chapter III: Trade unions

Industrial Relations Code, 2020 Trade unions four-step compliance flowchart — Finin2min decision flow — identify the law, complete the statutory process and preserve evidence.

Publication-source status: Every mapped section of the parent Code is embedded locally from the retained official India Code PDF and carries the source SHA-256. Linked 2026 Central Rules, forms, notifications and operational analysis remain subject to the official Gazette and subsequent amendments.

Chapter decision flow

Classify establishment & person→Fix event date→Apply section and Rule→Complete form/record→Retain evidence & remedy file

For the exact locally-verified statutory text of every section and rule referenced in this chapter, see the Industrial Relations Code Section Library. This chapter is the operational map and Finin2min synthesis layer.

Finin2min Summary - Chapter in 2 Minutes

This chapter turns trade unions into an operational control file. It covers Registrar of Trade Unions, Criteria for registration, Provisions to be contained in constitution or rules of Trade Union, Application for registration, alteration of name and procedure thereof; the practical sequence is to classify coverage and event date, apply the provision and mapped Rule, complete the form/register, calculate the entitlement or exposure, and retain evidence for inspection, claim or appeal.

Who is covered

Employers, workers, trade unions, negotiating bodies, standing-order establishments and dispute-resolution authorities should classify the industrial establishment and worker population first.

Main obligations and rights

Section 5: Registrar of Trade Unions
Section 6: Criteria for registration
Section 7: Provisions to be contained in constitution or rules of Trade Union
Section 8: Application for registration, alteration of name and procedure thereof
Section 9: Registration of Trade Union and cancellation thereof
Section 10: Appeal against non-registration or cancellation of registration

Key thresholds and timelines

Use only the threshold, rate and limitation period effective on the event date; verify the Central/State instrument before acting.

Forms, registers and evidence

Applicable form/register, calculation file, approval and acknowledgement evidence
Retain classification, calculation, approval, communication, acknowledgement and payment/filing proof.

Employer risk snapshot

Highest practical risks: registration, recognition, negotiating-union or protected-office-bearer errors.

Employee/worker remedy snapshot

Core protection: lawful registration, representation, collective-bargaining protections and access to the prescribed forums. Confirm the authority, limitation and appeal route stated in this chapter.

Old law / transition

Map the event date and savings position against: Trade Unions Act, 1926; Industrial Employment (Standing Orders) Act, 1946; Industrial Disputes Act, 1947.

Five-point professional checklist

Freeze the event date, establishment, location and person/worker classification.
Identify the controlling section/paragraph, mapped Rule, notification and appropriate Government.
Reperform the calculation or decision test and document every exception or approval.
Complete the prescribed form/register/portal step and retain acknowledgement, payment and communication evidence.
Record the remedy, forum, limitation, appeal path and State variation before sign-off.

Finin2min takeaway: for trade unions, the defensible answer is not a policy label - it is the event-date law, the mapped procedure, the calculation and a complete evidence trail.

Download one-page Finin2min cheat sheet

Section-by-section provision map

Provision	Subject	Implementation focus
Section 5	Registrar of Trade Unions	Trigger, linked Rule/form, evidence, consequence and remedy
Section 6	Criteria for registration	Trigger, linked Rule/form, evidence, consequence and remedy
Section 7	Provisions to be contained in constitution or rules of Trade Union	Trigger, linked Rule/form, evidence, consequence and remedy
Section 8	Application for registration, alteration of name and procedure thereof	Trigger, linked Rule/form, evidence, consequence and remedy
Section 9	Registration of Trade Union and cancellation thereof	Trigger, linked Rule/form, evidence, consequence and remedy
Section 10	Appeal against non-registration or cancellation of registration	Trigger, linked Rule/form, evidence, consequence and remedy
Section 11	Communication to Trade Union and change in its registration particulars	Trigger, linked Rule/form, evidence, consequence and remedy
Section 12	Incorporation of a registered Trade Union	Trigger, linked Rule/form, evidence, consequence and remedy
Section 13	Certain Acts not to apply to registered Trade Unions	Trigger, linked Rule/form, evidence, consequence and remedy
Section 14	Recognition of negotiating union or negotiating council	Trigger, linked Rule/form, evidence, consequence and remedy
Section 15	Objects of general fund, composition of separate fund and membership fee of Trade Union	Trigger, linked Rule/form, evidence, consequence and remedy
Section 16	Immunity from civil suit in certain cases	Trigger, linked Rule/form, evidence, consequence and remedy
Section 17	Criminal conspiracy in furtherance of objects of Trade Union	Trigger, linked Rule/form, evidence, consequence and remedy
Section 18	Enforceability of agreements	Trigger, linked Rule/form, evidence, consequence and remedy
Section 19	Right to inspect books of Trade Union	Trigger, linked Rule/form, evidence, consequence and remedy
Section 20	Rights of minor to membership of Trade Union	Trigger, linked Rule/form, evidence, consequence and remedy
Section 21	Disqualification of office-bearers of Trade Unions	Trigger, linked Rule/form, evidence, consequence and remedy
Section 22	Adjudication of disputes of Trade Unions	Trigger, linked Rule/form, evidence, consequence and remedy
Section 23	Proportion of office-bearers to be connected with industry	Trigger, linked Rule/form, evidence, consequence and remedy
Section 24	Change of name, amalgamation, notice of change and its effect	Trigger, linked Rule/form, evidence, consequence and remedy
Section 25	Dissolution	Trigger, linked Rule/form, evidence, consequence and remedy
Section 26	Annual returns	Trigger, linked Rule/form, evidence, consequence and remedy
Section 27	Recognition of Trade Unions at Central and State level	Trigger, linked Rule/form, evidence, consequence and remedy

Section 5: Registrar of Trade Unions

Current statutory text

5. Registrar of Trade Unions.—(1) The State Government may, by notification, appoint a person
to be the Registrar of Trade Unions, and other persons as Additional Registrar of Trade Unions, Joint
Registrar of Trade Unions and Deputy Registrar of Trade Unions, who shall exercise such powers and
perform such duties of the Registrar as the State Government may, by notification, specify from time
to time.

   (2) Subject to the provisions of any order made by the State Government, where an Additional
Registrar of Trade Unions or a Joint Registrar of Trade Unions or a Deputy Registrar of Trade Unions
exercises the powers and performs the duties of the Registrar in an area within which the registered
office of a Trade Union is situated, such Additional Registrar of Trade Unions or a Joint Registrar of
Trade Unions or a Deputy Registrar of Trade Unions, as the case may be, shall be deemed to be the
Registrar in relation to that Trade Union for the purposes of this Code.

Finin2min clause-by-clause decode

Test 1
The provision regulates registrar of trade unions within the statutory Trade Union framework.
Test 2
Identify the union, establishment/industry connection, membership base, authorised office-bearers and Registrar/Tribunal jurisdiction before taking action.
Test 3
Preserve the constitution, membership register, resolutions, notices, filings, acknowledgements, financial records and hearing record.
Test 4
Failure may affect registration, recognition, governance rights, civil/criminal protection or attract the section 86 penalty pathway.
Implementation control
Trigger

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

A multi-location employer prepares a legal classification memo, identifies the appropriate Government, maps the operative provision and Rule, records the decision owner and retains the documents needed to prove compliance during inspection or litigation.

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Identify the substantive default first, then separately map arrears or benefit, interest/damages, administrative penalty, prosecution, compounding, company/officer liability, forum, appeal and limitation. Do not infer a remedy from the heading alone.

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 5.

Section 6: Criteria for registration

Current statutory text

6. Criteria for registration.—(1) Any seven or more members of a Trade Union may, by
subscribing their names to the rules of the Trade Union and by otherwise complying with the provisions
of this Code with respect to registration, apply for registration of the Trade Union under this Code.

   (2) No Trade Union of workers shall be registered unless at least ten per cent. of the workers or one
hundred workers, whichever is less, engaged or employed in the industrial establishment or industry
with which it is connected are the members of such Trade Union on the date of making of application
for registration.

   (3) Where an application has been made under sub-section (1) for registration of a Trade Union,
such application shall not be deemed to have become invalid merely by reason of the fact that, at any
time after the date of the application but before the registration of the Trade Union, some of the
applicants, but not exceeding half of the total number of persons who made the application, have ceased
to be members of the Trade Union or have given notice in writing to the Registrar dissociating
themselves from the application.
   (4) A registered Trade Union of workers shall at all times continue to have not less than ten per cent.
of the workers or one hundred workers, whichever is less, subject to a minimum of seven, engaged or
employed in an industrial establishment or industry with which it is connected, as its members.

Finin2min clause-by-clause decode

Test 1
Registration requires the statutory minimum membership test: at least seven members and the prescribed proportion of workers connected with the establishment or industry.
Test 2
Membership must continue to satisfy the minimum requirement at the time of application.
Implementation control
Trigger
Document the fact pattern that activates section 6: criteria for registration.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

The establishment creates a trigger ticket when coverage changes, assigns the authorised signatory, uploads the prescribed attachments, captures the acknowledgement and retains a versioned copy of the form, payment and approval.

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 6.

Section 7: Provisions to be contained in constitution or rules of Trade Union

Current statutory text

7. Provisions to be contained in constitution or rules of Trade Union.—A Trade Union shall not
be entitled to registration under this Code, unless the executive thereof is constituted in accordance with
the provisions of this Code, and the rules of the Trade Union provide for the following matters,
namely:—

        (a) the name of the Trade Union;

        (b) the whole of the objects for which the Trade Union has been established;

         (c) the whole of the purposes for which the general funds of the Trade Union shall be applicable,
    all of which purposes shall be purposes to which such funds are lawfully applicable under this Code;

         (d) the maintenance of a list of members of the Trade Union and adequate facilities for the
   inspection thereof by the office-bearers and members of the Trade Union;

         (e) the admission of ordinary members (irrespective of their craft or category) who shall be
   persons actually engaged or employed in the industrial establishment, undertaking or industry, or
    units, branches or offices of an industrial establishment, as the case may be, with which the Trade
   Union is connected, and also the admission of such number of honorary or temporary members, who
   are not such workers, as are not permitted under section 21 to be office-bearers to form the executive
   of the Trade Union;

          (f) the payment of a subscription by members of the Trade Union from such members and
   others, as may be prescribed;

        (g) the conditions under which any member shall be entitled to any benefit assured by the rules
   and under which any fine or forfeiture may be imposed on any member;

        (h) the annual general body meeting of the members of the Trade Union, the business to be
   transacted at such meeting, including the election of office-bearers of the Trade Union;

          (i) the manner in which the members of the executive and the other office bearers of the Trade
   Union shall be elected once in a period of every three years and removed, and filling of casual
   vacancies;

          (j) the safe custody of the funds of the Trade Union, an annual audit, in such manner as may be
   prescribed, of the accounts thereof, and adequate facilities for the inspection of the account books
   by the office-bearers and members of the Trade Union;

         (k) the manner in which the rules shall be amended, varied or rescinded; and

          (l) the manner in which the Trade Union may be dissolved.

Finin2min clause-by-clause decode

Test 1
The union constitution must contain the mandatory matters listed in the section, including objects, use of funds, membership, governance, audit, elections, removal and dissolution.
Implementation control
Trigger
Document the fact pattern that activates section 7: provisions to be contained in constitution or rules of trade union.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner
Assign HR/ER, legal, payroll/finance and authorised signatory roles; no action should depend on an undocumented oral decision.
Evidence pack

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 7.

Section 8: Application for registration, alteration of name and procedure thereof

Current statutory text

8. Application for  registration, alteration of name and procedure thereof.—(1) Every
application for registration of a Trade Union shall be made to the Registrar electronically or otherwise
and be accompanied by—

        (a) a declaration to be made by an affidavit in such form and manner as may be prescribed;

        (b) copy of the rules of the Trade Union together with a copy of the resolution by the members
   of the Trade Union adopting such rules;

         (c) a copy of the resolution adopted by the members of the Trade Union authorising the
   applicants to make an application for registration; and
        (d) in the case of a Trade Union, being a federation or a central organisation of Trade Unions,
   a copy of the resolution adopted by the members of each of the member Trade Unions, meeting
   separately, agreeing to constitute a federation or a central organisation of Trade Unions.

       Explanation.—For the purposes of this clause, resolution adopted by the members of the Trade
   Union means, in the case of a Trade Union, being a federation or a central organisation of Trade
   Unions, the resolution adopted by the members of each of the member Trade Unions, meeting
   separately.

   (2) Where a Trade Union has been in existence for more than one year before the making of an
application for its registration, there shall be delivered to the Registrar, together with the application, a
general statement of the assets and liabilities of the Trade Union prepared in such form and containing
such particulars, as may be prescribed.

   (3) The Registrar may call for further information for the purpose of satisfying himself that the
application complies with the provisions of this Code and the Trade Union is entitled for registration
under this Code, and may refuse to register the Trade Union until such information is furnished.

   (4) If the name under which the Trade Union is proposed to be registered is identical with that of an
existing registered Trade Union or in the opinion of the Registrar so nearly resembles the name of an
existing Trade Union that such name is likely to deceive the public or the members of either Trade
Union, the Registrar shall require the persons applying for altering the name of the Trade Union and
shall refuse to register the Trade Union until such alteration has been made.

Finin2min clause-by-clause decode

Test 1
Registration and alteration applications require the prescribed declaration, particulars, rules, asset/liability statement where applicable and authorised signatories.
Implementation control
Trigger
Document the fact pattern that activates section 8: application for registration, alteration of name and procedure thereof.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner
Assign HR/ER, legal, payroll/finance and authorised signatory roles; no action should depend on an undocumented oral decision.
Evidence pack

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 8.

Section 9: Registration of Trade Union and cancellation thereof

Current statutory text

9. Registration of Trade Union and cancellation thereof.—(1) The Registrar shall, on being
satisfied that the Trade Union has complied with all the requirements of the provisions of this Chapter
in regard to registration, register the Trade Union by entering in a register, to be maintained in such
form as may be prescribed, the particulars relating to the Trade Union contained in the statement
accompanying the application for registration.

   (2) Where the Registrar makes an order for registration of a Trade Union, he shall issue a certificate
of registration to the applicant Trade Union, in such form as may be prescribed, which shall be the
conclusive evidence that the Trade Union has been registered under this Code.

   (3) If the Registrar has issued a certificate of registration to a Trade Union, he shall enter the name
and other particulars of the Trade Union in a register maintained in this behalf in such form as may be
prescribed.

   (4) Every Trade Union registered under the Trade Unions Act, 1926 having valid registration
immediately before the commencement of this Code shall be deemed to have been registered under this
Code:

   Provided that such Trade Union shall file with the Registrar a statement that the constitution of the
executive of the Trade Union is in accordance with this Code along with the rules of the Trade Union
updated in accordance with section 7, and the Registrar shall amend his records accordingly.

   (5) The certificate of registration of a Trade Union may be withdrawn or cancelled by the
Registrar,—

          (i) on the application of the Trade Union verified in such manner as may be prescribed; or

          (ii) on the information received by him regarding the contravention by the Trade Union of the
   provisions of this Code or the rules made thereunder or its constitution or rules; or
            (iii) if he is satisfied that the members in a Trade Union falls below ten per cent. of total workers
   or one hundred workers, whichever is less:

   Provided that not less than sixty days previous notice in writing specifying the grounds on which it
is proposed to cancel the certificate of registration of a Trade Union shall be given by the Registrar to
the Trade Union before the certificate of registration is cancelled otherwise than on the application of
the Trade Union.

   (6) A certificate of registration of a Trade Union shall be cancelled by the Registrar where a Tribunal
has made an order for cancellation of registration of such Trade Union.

   (7) While cancelling the certificate of registration of a Trade Union, the Registrar shall record the
reasons for doing so and communicate the same in writing to the Trade Union concerned.

Finin2min clause-by-clause decode

Test 1
The Registrar examines the application, may call for further information and issues/cancels registration only through the statutory procedure.
Test 2
Cancellation risk requires notice and an opportunity to respond; preserve filing and communication evidence.
Implementation control
Trigger
Document the fact pattern that activates section 9: registration of trade union and cancellation thereof.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 9.

Section 10: Appeal against non-registration or cancellation of registration

Current statutory text

10. Appeal against non-registration or cancellation of registration.—(1) Any person aggrieved
by the refusal of the Registrar to grant registration to a Trade Union under section 9 or by cancellation
of a certificate of registration under sub-section (5) of the said section, may within such period as may
be prescribed, prefer an appeal to the Tribunal:

   Provided that the Tribunal may entertain the appeal after the limitation prescribed for preferring the
appeal under this sub-section, if the appellant satisfies the Tribunal that such delay has been caused due
to sufficient reason or unavoidable circumstances.

   (2) The Tribunal may, after giving the parties concerned an opportunity of being heard, dismiss the
appeal or pass an order directing the Registrar to register the Trade Union and to issue a certificate of
registration or set aside the order of cancellation of certificate of registration, as the case may be and
forward a copy of such order to the Registrar.

Finin2min clause-by-clause decode

Test 1
An aggrieved Trade Union may appeal to the Tribunal within the prescribed period and manner.
Implementation control
Trigger
Document the fact pattern that activates section 10: appeal against non-registration or cancellation of registration.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner
Assign HR/ER, legal, payroll/finance and authorised signatory roles; no action should depend on an undocumented oral decision.
Evidence pack

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 10.

Section 11: Communication to Trade Union and change in its registration particulars

Current statutory text

11. Communication to Trade Union and change in  its registration particulars.—(1) All
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 Trade Union as entered in the register maintained by
the Registrar.

    (2) The Trade Union shall inform the Registrar if the members of such Trade Union falls below ten
per cent. of total workers or one hundred workers, whichever is less.

    (3) The Trade Union shall inform the Registrar of any change in the particulars given by it in its
application for registration and in its constitution or rules, in such manner as may be prescribed.

Finin2min clause-by-clause decode

Test 1
The provision regulates communication to trade union and change in its registration particulars within the statutory Trade Union framework.
Test 2
Identify the union, establishment/industry connection, membership base, authorised office-bearers and Registrar/Tribunal jurisdiction before taking action.
Test 3
Preserve the constitution, membership register, resolutions, notices, filings, acknowledgements, financial records and hearing record.
Test 4
Failure may affect registration, recognition, governance rights, civil/criminal protection or attract the section 86 penalty pathway.
Implementation control
Trigger

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 11.

Section 12: Incorporation of a registered Trade Union

Current statutory text

12. Incorporation of a registered Trade Union.—Every registered Trade Union shall be a body
corporate by the name under which it is registered, and shall have perpetual succession and a common
seal with power to acquire and hold both movable and immovable property and to contract, and shall
by the said name sue and be sued.

Finin2min clause-by-clause decode

Test 1
The provision regulates incorporation of a registered trade union within the statutory Trade Union framework.
Test 2
Identify the union, establishment/industry connection, membership base, authorised office-bearers and Registrar/Tribunal jurisdiction before taking action.
Test 3
Preserve the constitution, membership register, resolutions, notices, filings, acknowledgements, financial records and hearing record.
Test 4
Failure may affect registration, recognition, governance rights, civil/criminal protection or attract the section 86 penalty pathway.
Implementation control
Trigger

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 12.

Section 13: Certain Acts not to apply to registered Trade Unions

Current statutory text

13. Certain Acts not to apply to registered Trade Unions.—The provisions of the following Acts,
namely:—

          (a) the Societies Registration Act, 1860 (21 of 1860);

          (b) the Co-operative Societies Act, 1912 (2 of 1912);

          (c) the Multi-State Co-operative Societies Act, 2002 (39 of 2002);

          (d) the Companies Act, 2013 (18 of 2013); and

          (e) any other corresponding law relating to co-operative societies for the time being in force
     in any State,
shall not apply to any registered Trade Union and the registration of any such Trade Union under any
of the aforementioned Acts shall be void.

Finin2min clause-by-clause decode

Test 1
The provision regulates certain acts not to apply to registered trade unions within the statutory Trade Union framework.
Test 2
Identify the union, establishment/industry connection, membership base, authorised office-bearers and Registrar/Tribunal jurisdiction before taking action.
Test 3
Preserve the constitution, membership register, resolutions, notices, filings, acknowledgements, financial records and hearing record.
Test 4
Failure may affect registration, recognition, governance rights, civil/criminal protection or attract the section 86 penalty pathway.
Implementation control
Trigger

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 13.

Section 14: Recognition of negotiating union or negotiating council

Current statutory text

14. Recognition of negotiating union or negotiating council.—(1) There shall be a negotiating
union or a negotiating council, as the case may be, in an industrial establishment having registered
Trade Union for negotiating with the employer of the industrial establishment, on such matters as may
be prescribed.

   (2) Where only one Trade Union of workers registered under the provisions of this Chapter is
functioning in an industrial establishment, then, the employer of such industrial establishment shall,
subject to such criteria as may be prescribed, recognise such Trade Union as sole negotiating union of
the workers.

   (3) If more than one Trade Union of workers registered under this Code are functioning in an
industrial establishment, then, the Trade Union having fifty-one per cent. or more workers on the muster
roll of that industrial establishment, verified in such manner as may be prescribed, supporting that Trade
Union shall be recognised by the employer of the industrial establishment, as the sole negotiating union
of the workers.

   (4) If more than one Trade Union of workers registered under this Code are functioning in an
industrial establishment, and no such Trade Union has fifty-one per cent. or more of workers on the
muster roll of that industrial establishment, verified in such manner as may be prescribed, supporting
that Trade union, then, there shall be constituted by the employer of the industrial establishment, a
negotiating council for negotiation on the matters referred to in sub-section (1), consisting of the
representatives of such registered Trade Unions which have the support of not less than twenty per cent.
of the total workers on the muster roll of that industrial establishment so verified and such representation
shall be of one representative for each twenty per cent. and for the remainder after calculating the
membership on each twenty per cent.

   (5) Where any negotiation on the matters referred to in sub-section (1) is held between an employer
and a negotiating council constituted under sub-section (4), consequent upon such negotiation, any
agreement is said to be reached, if it is agreed by the majority of the representatives of the Trade Unions
in such negotiating council.

   (6) Any recognition made under sub-section (2) or sub-section (3) or the negotiating council
constituted under sub-section (4) shall be valid for three years from the date of recognition or
constitution or such further period not exceeding five years, in total, as may be mutually decided by the
employer and the Trade Union, as the case may be.

    (7) The facilities to be provided by industrial establishment to a negotiating union or negotiating
council shall be such as may be prescribed.

Finin2min clause-by-clause decode

Test 1
Where a single registered Trade Union has support of fifty-one per cent or more workers on the muster roll, it is recognised as the sole negotiating union.
Test 2
Where no union meets fifty-one per cent, a negotiating council is constituted; a union with support of at least twenty per cent receives representation in the statutory manner.
Test 3
Verification, facilities and tenure must follow Rule 9 and the Code.
Implementation control
Trigger
Document the fact pattern that activates section 14: recognition of negotiating union or negotiating council.
Coverage and jurisdiction

Applicable Central Rules immediately below the provision

Central Rule 9: Rule 9 — Manner of recognition of negotiating union or negotiating council

extracted from the official English notification 9. Manner of recognition of negotiating union or negotiating council.- (1) Matters for negotiation.- The matters pertaining to workers which the negotiating union or the negotiating council, as the case may be, shall negotiate with the employer of the industrial establishment under sub-section (1) of section 14 of the Code are specified, below: - (i) the classification of grades and categories of workers; (ii) order passed by an employer under the standing orders applicable in the industrial establishment; (iii) the wages of the workers including their wage period, dearness allowance, bonus, increment, customary concession or privileges, compensatory and other allowances; (iv) hours of work of the workers, rest days, number of working days in a week, rest intervals, working of shifts; (v) leave with wages and holidays; (vi) promotion and transfer policy and disciplinary procedures; (vii) quarter allotment policy for workers; (viii) safety, health and working conditions and related standards; (ix) the matters pertaining to conditions of service and terms of employment of the workers which are not covered in the foregoing clauses; and (x) any other matter which is agreed between employer of the industrial establishment and negotiating union or negotiating council, as the case may be. (2) Criteria for recognising single registered Trade Union.- under sub-section (2) of section 14 of the Code.- Where there is only one registered Trade Union operating in an industrial establishment having its membership not less than thirty per cent. of the total workers employed in the industrial establishment, the employer of such industrial establishment shall recognise such Trade Union as the sole negotiating union of the workers. (3) Manner of verification of membership of Trade Unions under sub-sections (3) and (4) of section 14 of the Code.- (a) (i) The Central Government shall appoint a verification officer (hereinafter in this chapter, referred to as the verification officer) for the purpose of verification of membership of the Trade Unions in the industrial establishment who shall not have any interest with any of the Trade Unions in the industrial establishment, whose membership verification is to be carried out by him: Provided that the process for recognition of the negotiating union or the negotiating council, as the case may be, shall commence three months before the expiry of the term of the existing recognition period of the negotiating union or the negotiating council, as the case may be, recognised by the employer under the Code. (ii) The verification officer may utilise the services of other officers to assist him depending upon the quantum of work of membership verification. (iii) The verification officer shall carry out the work of membership verification in the industrial establishment within the time as determined by the Central Government. (b) The employer of the industrial establishment shall bear all the expenses and make arrangements in connection with the verification of membership of Trade Unions under clause (a). (c) The Trade Unions may submit an application to the employer of the industrial establishment to accord status of negotiating union or the representatives of negotiating council of the workers, as the case may be, on fulfillment of the following conditions namely,- (i) such Trade Union has a valid registration under the Trade Unions Act, 1926 (16 of 1926) and continuing as such or has the registration under the Industrial Relations Code, 2020 (35 of 2020), as the case may be; and (ii) the application for recognition by the Trade Union is accompanied with a copy of the registration certificate, a copy of list of members, details of the membership subscription and a copy of latest annual return of the Trade Union submitted to the Registrar of Trade Unions. (d) (i) In case the negotiating union or negotiating council, is constituted under the Code, the employer of the industrial establishment shall initiate action before expiry of the tenure of negotiating union or negotiating council, sufficiently in advance but not later than three months before the expiry of the tenure of negotiating union or negotiating council, as the case may be. (ii) The date of reckoning of verification of membership of the Trade Unions shall be fixed by the verification officer for the industrial establishment. (iii) The employer of the establishment shall forward the documents and records submitted by Trade Unions, to the verification officer. (iv) On receipt of the documents and records, the verification officer shall scrutinise the records and documents submitted by the Trade Union to ascertain the status of registration of Trade Unions and related matters. (v) The verification officer shall hold meeting with representatives of employer of industrial establishment and all participating Trade Unions to decide the process of verification of the membership of Trade Unions through secret ballot. (vi) The employer may, in consultation with the verification officer deploy an electronic process for conducting the election over an information technology application, online platform or like other platform. (4) Verification of membership through secret ballot.- (a) The verification officer shall convene meeting of representatives of all registered Trade Unions functioning in the industrial establishment sixty days before the date of actual voting to decide - (i) the publication of voters list; (ii) the date, time, mode of voting, place of voting; (iii) the date, time and place of counting; and (iv) other modalities relating to secret ballot. (b) The verification officer shall cause the minutes of the meeting to be prepared and signed by all participating Trade Unions. (c) All participating Trade Unions shall be allotted symbols in the same meeting. (d) In case no decision could be taken regarding date, time, mode of voting, place of voting, allotment of symbols, date, time and place of counting and like other matters in the meeting, the decision of the verification officer shall be final and he shall publish the schedule, programme and procedure of such secret ballot election. (e) All workers whose names are borne on the muster roll of the industrial establishment on the date of reckoning shall be eligible to cast their vote. (f) The voters list shall be prepared by the employer of the industrial establishment on the basis of names of the workers borne on the muster roll referred to in clause (e) and the voters list shall contain the name, father’s name, designation, worker number or identity card number issued by the employer and place of posting of the worker. (g) The final voter list shall be published by the employer after obtaining the approval of verification officer and be displayed at notice board at the main entrance and also on website, if any, of the industrial establishment within two days of finalisation of the list and a copy of such voters list shall also be sent to the participating Trade Unions by hand or by speed post or through electronic mode. (h) The verification officer shall display the list of the name of the participating Trade Unions with the symbol allotted to them on the notice board at the main entrance and website, if any, of the industrial establishment within two days of finalisation of the list. (i) The voting and counting of votes shall be held on the date, time and place fixed by the verification officer under the supervision of the verification officer and during the counting, agents of all participating Trade Unions shall be allowed to remain present. (j) After final counting of votes, the result shall be declared by the verification officer which shall contain the name of all Trade Unions who participated in election, total number of votes polled and the number of votes cast in favour of each of the trade unions which participated in the election. (5) Verification report.- The verification officer shall submit verification report along with the result sheet to the employer of industrial establishment. (6) Recognition of Trade Union as negotiating union or constituents of negotiating council.- (a) On the basis of verification report submitted by verification officer, the employer of the industrial establishment shall grant recognition to the Trade Union as a negotiating union or a constituent of negotiating council. (b) The recognition granted under clause (a), either as negotiating union or the negotiating council shall be valid for three years from the date of recognition or constitution or such further period not exceeding five years, in total, as may be mutually agreed by the employer and the Trade Union, as the case may be. (7) Facilities provided by industrial establishment.- (a) In an industrial establishment, where there is a negotiating union or negotiating council, as the case may be, the employer of such industrial establishment shall provide the following facilities namely: - (i) notice board for the purpose of displaying information relating to activities of the negotiating union or negotiating council; (ii) venue and necessary facilities for holding discussions by the negotiating union or negotiating council, as per the schedule and agenda to be settled between employer of the industrial establishment and the negotiating union or negotiating council; (iii) venue and necessary facilities for holding discussions amongst the members of the negotiating union or constituents of negotiating council; (iv) entrance of the office bearers of the negotiating union or negotiating council, in the industrial establishment for the purposes of ascertaining the matters relating to working conditions of the workers; (v) employer of an industrial establishment, having three hundred or more workers, shall provide suitable office accommodation with necessary facilities to the negotiating union or negotiating council. (b) The employer of the industrial establishment shall deduct subscription of the members of the Trade Union on the basis of the written consent of the worker. (c) The office bearers of the negotiating union or negotiating council shall be treated on duty while holding meetings with the employer. (8) Application for adjudication of dispute before Tribunal.- Where any dispute arises between – (i) one Trade Union and another; or (ii) one or more workers who are members of Trade Union and the Trade Union regarding registration, administration or management or election of office bearers of the Trade Union; or (iii) one or more workers who are refused admission as members and the Trade Union; or (iv) where the dispute is in respect of a Trade Union which is a federation of Trade Unions and office bearer authorised in this behalf by the Trade Union, the aggrieved worker or the Trade Union, as the case maybe, may make an application in Form-II to the Tribunal having jurisdiction within a period of one year from the date on which the dispute arises, electronically or by speed post or in person. CHAPTER IV STANDING ORDERS Code concordance Primary operative section Section 14 Recognition of negotiating union or negotiating council Forms and records No form heading is directly assigned to this rule. Keep the application, notice, order, electronic acknowledgment and register required by the text. Implementation owner HR/employee relations with legal review and the authorised signatory specified by the rule. System control Create a workflow that blocks completion until every mandatory field, attachment, service method and timeline is satisfied. Evidence Preserve the exact filed form, annexures, electronic receipt, delivery proof, hearing material and final order. Failure consequence The underlying Code section may create invalidity, compensation, appeal, recovery, unfair-practice or penalty exposure. ← Previous Next →

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: Rule 9 | Official source: section 14.

Section 15: Objects of general fund, composition of separate fund and membership fee of Trade Union

Current statutory text

15. Objects of general fund, composition of separate fund and membership fee of Trade
Union.—(1) The general funds of a registered Trade Union shall not be spent on any objects other than
such objects as may be prescribed.

   (2) 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, in furtherance of such objects as may be prescribed.

   (3) No member shall be compelled to contribute to the fund constituted under sub-section (2) and a
member who does not contribute to the said fund shall not be excluded from any benefits of the Trade
Union, or placed in any respect either directly or indirectly under any disability or at any disadvantage
as compared with other members of the Trade Union (except in relation to the control or management
of the said fund) by reason of his not contributing to the said fund; and contribution to the said fund
shall not be made a condition for admission to the Trade Union.

   (4) The subscriptions payable by the members of the Trade Union shall be such as may be prescribed.

Finin2min clause-by-clause decode

Test 1
General and political funds must be segregated and used only for permitted objects.
Test 2
Membership subscription cannot be below the statutory minimum applicable to the member category.
Implementation control
Trigger
Document the fact pattern that activates section 15: objects of general fund, composition of separate fund and membership fee of trade union.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 15.

Section 16: Immunity from civil suit in certain cases

Current statutory text

16. Immunity from civil suit in certain cases.—(1) No suit or other legal proceeding shall be
maintainable in any civil court against any registered Trade Union or any office-bearer or member
thereof in respect of any act done in contemplation or furtherance of an industrial 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 employment or that it is an 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 of his labour as he
wills.

   (2) A registered Trade Union shall not be liable in any suit or other legal proceeding in any civil
court in respect of any tortuous act done in contemplation or furtherance of an industrial 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.

Finin2min clause-by-clause decode

Test 1
The section gives specified civil immunity for acts done in contemplation or furtherance of an industrial dispute, but does not immunise violence, crime or conduct outside the statutory scope.
Implementation control
Trigger
Document the fact pattern that activates section 16: immunity from civil suit in certain cases.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner
Assign HR/ER, legal, payroll/finance and authorised signatory roles; no action should depend on an undocumented oral decision.
Evidence pack

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 16.

Section 17: Criminal conspiracy in furtherance of objects of Trade Union

Current statutory text

17. Criminal conspiracy in furtherance of objects of Trade Union.—No office-bearer or member
of a registered Trade Union shall be liable to punishment under sub-section (2) of section 120B of the
Indian Penal Code (45 of 1860) in respect of any agreement made between the members for the purpose
of furthering any such object of the Trade Union as is specified in section 15, unless such agreement is
an agreement to commit an offence.

Finin2min clause-by-clause decode

Test 1
The limited criminal-conspiracy protection applies only to agreements made in furtherance of legitimate Trade Union objects and does not protect an agreement to commit an offence.
Implementation control
Trigger
Document the fact pattern that activates section 17: criminal conspiracy in furtherance of objects of trade union.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner
Assign HR/ER, legal, payroll/finance and authorised signatory roles; no action should depend on an undocumented oral decision.
Evidence pack

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 17.

Section 18: Enforceability of agreements

Current statutory text

18. Enforceability of agreements.—Notwithstanding anything contained in any other law for the
time being in force, 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 are in restraint of trade:

   Provided that nothing in this section shall enable any civil court to entertain any legal proceedings
instituted for the 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.

Finin2min clause-by-clause decode

Test 1
Agreements between Trade Union members are not unenforceable merely because they restrain trade, subject to the statutory limits.
Implementation control
Trigger
Document the fact pattern that activates section 18: enforceability of agreements.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner
Assign HR/ER, legal, payroll/finance and authorised signatory roles; no action should depend on an undocumented oral decision.
Evidence pack

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 18.

Section 19: Right to inspect books of Trade Union

Current statutory text

19. Right to inspect books of Trade Union.—The books of account of a registered Trade Union
and the list of members thereof shall be open to inspection by an office-bearer or member of the Trade
Union at such times as may be provided for in the rules of the Trade Union.

Finin2min clause-by-clause decode

Test 1
Members and office-bearers have inspection rights over account books and the member register subject to the union rules and Code.
Implementation control
Trigger
Document the fact pattern that activates section 19: right to inspect books of trade union.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner
Assign HR/ER, legal, payroll/finance and authorised signatory roles; no action should depend on an undocumented oral decision.
Evidence pack

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 19.

Section 20: Rights of minor to membership of Trade Union

Current statutory text

20. Rights of minor to membership of Trade Union.—Any person who has attained the age of
fourteen years and is employed in a nonhazardous industry may be a member of a registered Trade
Union subject to any rules of the Trade Union, and may, subject to as aforesaid enjoy all the rights of a
member and execute all instruments and given all acquaintances necessary to be executed or given
under the rules.

Finin2min clause-by-clause decode

Test 1
A person who has attained fourteen years may be a union member, subject to union rules; office-bearing eligibility is governed separately.
Implementation control
Trigger
Document the fact pattern that activates section 20: rights of minor to membership of trade union.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner
Assign HR/ER, legal, payroll/finance and authorised signatory roles; no action should depend on an undocumented oral decision.
Evidence pack

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 20.

Section 21: Disqualification of office-bearers of Trade Unions

Current statutory text

21. Disqualification of office-bearers of Trade Unions.—(1) A person shall be disqualified for
being chosen as, and for being, a member of the executive or any other office-bearer of a registered
Trade Union, if—

            (i) he has not attained the age of eighteen years;

             (ii) he has been convicted by a court in India for any offence involving moral turpitude and
   sentenced to imprisonment unless a period of five years has elapsed since his release;

             (iii) the Tribunal has directed that he shall be disqualified for being chosen or for being office-
   bearer of a Trade Union for a period specified therein.
   (2) No member of the Council of Ministers or a person holding an office of profit (not being an
engagement or employment in an establishment or industry with which the Trade Union is connected)
in the Union or a State shall be a member of the executive or other office-bearer of a Trade Union.

Finin2min clause-by-clause decode

Test 1
Disqualifications include the statutory age and conviction criteria; maintain declarations and periodic eligibility checks for office-bearers.
Implementation control
Trigger
Document the fact pattern that activates section 21: disqualification of office-bearers of trade unions.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner
Assign HR/ER, legal, payroll/finance and authorised signatory roles; no action should depend on an undocumented oral decision.
Evidence pack

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 21.

Section 22: Adjudication of disputes of Trade Unions

Current statutory text

22. Adjudication of disputes of Trade Unions.—(1) Where a dispute arises between—

          (a) one Trade Union and another; or

          (b) one or more workers who are members of the Trade Union and the Trade Union regarding
   registration, administration or management or election of office-bearers of the Trade Union; or

          (c) one or more workers who are refused admission as members and the Trade Union; or

          (d) where a dispute is in respect of a Trade Union which is a federation of Trade Unions and
   office-bearer authorised in this behalf by the Trade Union,

an application may be made in such manner as may be prescribed to the Tribunal having jurisdiction
over the area where the registered office of the Trade Union or Trade Unions is located for adjudication
of such disputes.

   (2) No civil court other than the Tribunal shall have power to entertain any suit or other proceedings
in relation to any dispute referred to in sub-section (1).

Finin2min clause-by-clause decode

Test 1
Trade Union disputes specified by the section are adjudicated by the Tribunal on the prescribed application route.
Implementation control
Trigger
Document the fact pattern that activates section 22: adjudication of disputes of trade unions.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner
Assign HR/ER, legal, payroll/finance and authorised signatory roles; no action should depend on an undocumented oral decision.
Evidence pack

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 22.

Section 23: Proportion of office-bearers to be connected with industry

Current statutory text

23. Proportion of office-bearers to be connected with industry.—(1) Not less than one-half of
the total number of the office-bearers of every registered Trade Union in an unorganised sector shall be
persons actually engaged or employed in an establishment or industry with which the Trade Union is
connected:

   Provided that the appropriate Government may, by special or general order, declare that the
provisions of this section shall not apply to any Trade Union or class of Trade Unions specified in the
order.

   Explanation.—For the purposes of this sub-section, “unorganised sector” means any sector which
the appropriate Government may, by notification, specify.

   (2) Save as otherwise provided in sub-section (1), all office-bearers of a registered Trade Union,
except not more than one-third of the total number of the office-bearers or five, whichever is less, shall
be persons actually engaged or employed in the establishment or industry with which the Trade Union
is connected.

   Explanation.—For the purposes of this sub-section, an employee who has retired or has been
retrenched shall not be construed as outsider for the purpose of holding an office in a Trade Union.

Finin2min clause-by-clause decode

Test 1
The required proportion of office-bearers must be actually engaged or employed in the connected industry, subject to the organised/unorganised-sector rules and exemptions.
Implementation control
Trigger
Document the fact pattern that activates section 23: proportion of office-bearers to be connected with industry.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner
Assign HR/ER, legal, payroll/finance and authorised signatory roles; no action should depend on an undocumented oral decision.
Evidence pack

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 23.

Section 24: Change of name, amalgamation, notice of change and its effect

Current statutory text

24. Change of name, amalgamation, notice of change and its effect.—(1) Any registered Trade
Union may, with the consent of not less than two-third of the total number of its members and subject
to the provisions of sub-section (3), change its name.

   (2) Any two or more registered Trade Unions may be amalgamated in such manner as may be
prescribed.

    (3) Notice in writing of every change of name and of every amalgamation signed in the case of a
change of name, by the secretary and by seven members of the Trade Union changing its name, and in
the case of an amalgamation, by the secretary and by seven members of each and every Trade Union
which is a party thereto, shall be sent to the Registrar and where the head office of the amalgamated
Trade Union is situated in a different State, to the Registrar of such State in such manner as may be
prescribed.
    (4) If the proposed name is identical with that by which any other existing Trade Union has been
registered or, in the opinion of the Registrar, so nearly resembles such name as to be likely to deceive
the public or the members of either Trade Union, the Registrar shall refuse to register the change of
name.

    (5) Save as provided in sub-section (4), the Registrar shall, if he is satisfied that the provisions of
this Code in respect of change of name have been complied with, register the change of name in the
register referred to in sub-section (3) of section 9, and the change of name shall have effect from the
date of such registration.

    (6) The Registrar of the State in which the head office of the amalgamated Trade Union is situated
shall, if he is satisfied that the provisions of this Code in respect of amalgamation have been complied
with and that the Trade Union formed thereby is entitled to registration under section 9, register the
Trade Union and the amalgamation shall have effect from the date of such registration.

   (7) The change in the name of a registered Trade Union shall not affect any rights or obligations of
the Trade Union or render defective any legal proceeding by or against the Trade Union, and any legal
proceeding which might have been continued or commenced by or against it by its former name may
be continued or commenced by or against it by its new name.

   (8) An amalgamation of two or more registered Trade Unions shall not prejudice any right of any
such Trade Unions or any right of a creditor of any of them.

Finin2min clause-by-clause decode

Test 1
Change of name and amalgamation require member consent thresholds, notices and Registrar filings; the transaction does not automatically dissolve legal rights or liabilities.
Implementation control
Trigger
Document the fact pattern that activates section 24: change of name, amalgamation, notice of change and its effect.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner
Assign HR/ER, legal, payroll/finance and authorised signatory roles; no action should depend on an undocumented oral decision.
Evidence pack

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 24.

Section 25: Dissolution

Current statutory text

25. Dissolution.—(1) When a registered Trade Union is dissolved, notice of the dissolution signed
by seven members and by the secretary of the Trade Union shall, within fourteen days of the dissolution,
be sent to the Registrar, and shall be registered by him if he is satisfied that the dissolution has been
effected in accordance with the rules of the Trade Union, and the dissolution shall have effect from the
date of such registration.

   (2) Where the dissolution of a registered Trade Union has been registered and the rules of the Trade
Union do not provide for the distribution of funds of the Trade Union on dissolution, the Registrar shall
divide the funds amongst the members in such manner as may be prescribed.

Finin2min clause-by-clause decode

Test 1
Dissolution must be notified and funds distributed under the registered rules or Registrar process.
Implementation control
Trigger
Document the fact pattern that activates section 25: dissolution.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner
Assign HR/ER, legal, payroll/finance and authorised signatory roles; no action should depend on an undocumented oral decision.
Evidence pack

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 25.

Section 26: Annual returns

Current statutory text

26. Annual returns.—(1) Every registered Trade Union shall—

         (a) forward annually to the Registrar, on or before such date, in such form, audited in such
   manner and by such person, as may be prescribed, a general statement containing particulars of all
   receipts and expenditure of such registered Trade Union during the year ending on the 31st day of
   December next preceding such prescribed date, and of the assets and liabilities of the Trade Union
   existing on such 31st day of December;

        (b) along with the general statement referred to in clause (a), forward to the Registrar a
   statement showing changes of office-bearers made by the Trade Union during the year to which such
   general statement refers, together also with a copy of the rules of the Trade Union corrected up to
   the date of dispatch thereof to the Registrar.

   (2) A copy of every alteration made in the rules of a registered Trade Union shall be sent to the
Registrar within fifteen days of the making of the alteration.

   (3) For the purpose of examining the documents referred to in clauses (a) and (b) of sub-section (1),
and sub-section (2), the Registrar or any officer authorised by him, by general or special order, may at
all reasonable times inspect the certificate of registration, account books, registers and other documents,
relating to a Trade Union, at its registered office or may require their production at such place as he
may specify in this behalf, but no such place shall be at a distance of more than fifteen kilometres from
the registered office of such Trade Union.

Finin2min clause-by-clause decode

Test 1
Annual returns must be filed by the prescribed date in the prescribed form with audited financial and governance particulars.
Implementation control
Trigger
Document the fact pattern that activates section 26: annual returns.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner
Assign HR/ER, legal, payroll/finance and authorised signatory roles; no action should depend on an undocumented oral decision.
Evidence pack

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 26.

Section 27: Recognition of Trade Unions at Central and State level

Current statutory text

27. Recognition of Trade Unions at Central and State level.—(1) Where the Central Government
is of the opinion that it is necessary or expedient that a Trade Union or federation of Trade Unions is to
be recognised as Central Trade Union at the Central level, it may recognise such Trade Union or
federation of Trade Unions as Central Trade Union in such manner and for such purpose, as may be
prescribed, and if any dispute arises in relation to such recognition, it shall be decided by such authority
in such manner as may be prescribed by the Central Government.

   (2) Where the State Government is of the opinion that it is necessary or expedient that a Trade Union
or federation of Trade Unions is to be recognised as State Trade Union at the State level, it may
recognise such Trade Union or federation of Trade Unions as State Trade Union in such manner and
for such purpose, as may be prescribed, and if any dispute arises in relation to such recognition, it shall
be decided by such authority in such manner as may be prescribed by the State Government.

                        CHAPTER IV

                               STANDING ORDERS

Finin2min clause-by-clause decode

Test 1
Central and State recognition of unions/federations is separate from establishment-level negotiating recognition under section 14.
Implementation control
Trigger
Document the fact pattern that activates section 27: recognition of trade unions at central and state level.
Coverage and jurisdiction
Record worker/employee status, establishment, appropriate Government, threshold and territorial authority.
Decision owner
Assign HR/ER, legal, payroll/finance and authorised signatory roles; no action should depend on an undocumented oral decision.
Evidence pack

Applicable Central Rules immediately below the provision

No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.

Practical example

Controls and evidence

Employer: assign owner, configure system and retain approval/payment proof.
Employee/worker: retain contract, attendance, wage/benefit proof and communication.
Professional: reconcile the Act, Rule, notification, form, limitation and State overlay.

Consequence, remedy and limitation

Mapped Rules: No direct Central Rule mapped in the repository concordance | Official source: section 27.

Rules, forms, registers, portals and due dates

Rule	Subject	Text/control status
9	Rule 9 — Manner of recognition of negotiating union or negotiating council	Exact Gazette extract embedded

Forms and registers must be confirmed from the appended 2026 Central Rules and the live portal applicable to the appropriate Government. A form is not treated as current merely because an earlier law used the same number.

Notifications and effective-date history

Control	Required action
Enactment	Record Act number, assent and Gazette publication.
Commencement	Use the provision-specific commencement notification; the four Codes became broadly operative from 21 November 2025 subject to earlier partial commencement and corrigenda.
Central Rules	Read the applicable 2026 Central Rules from their Gazette date and verify subsequent amendments.
State instrument	Check final State Rules, authority notifications, forms and rates where the State is appropriate Government.

Old-law/new-Code concordance

Predecessor law	Transition control
Trade Unions Act, 1926	Classify the event date, accrued right, saved Rule/notification and pending proceeding before moving to the Code.
Industrial Employment (Standing Orders) Act, 1946	Classify the event date, accrued right, saved Rule/notification and pending proceeding before moving to the Code.
Industrial Disputes Act, 1947	Classify the event date, accrued right, saved Rule/notification and pending proceeding before moving to the Code.

Practical calculations and control file

Calculation sequence

Freeze the employee/worker population and event date.
Apply the statutory wage/benefit base and notified threshold.
Reconcile attendance, service, payroll and contractor records.
Calculate principal amount, interest/damages and any statutory compensation separately.
Obtain legal/payroll approval and retain the versioned worksheet.

Three-owner sign-off

Employer/HR: facts, classification, communication and workflow.
Employee/worker: notice, records, nomination/claim and acknowledgement.
Professional: source, formula, forum, limitation and evidence reconciliation.

Binding and highly relevant case-law principles

Older cases are included for principles only. Their continued application must be tested against the current Code wording, repeal-and-savings clause and later judgments.

Decision	Principle and present-use caution
Bangalore Water Supply v. A. Rajappa	The industry test remains an important interpretive starting point, subject to the Code definition and later statutory developments.
Workmen of Firestone Tyre v. Management	Domestic enquiry fairness and the adjudicatory power to examine dismissal remain central principles, subject to the Code and certified standing orders.
Bharat Bank Ltd. v. Employees	Industrial adjudication is specialised statutory adjudication; forum, reference and award provisions must be followed.
Karnal Leather Karamchari Sanghatan v. Liberty Footwear	Settlement and collective-bargaining outcomes require genuine authority, representativeness and statutory compliance.

State-law variation alerts

Confirm whether the Central or State Government is the appropriate Government.
Central Rules do not automatically displace valid State Rules, rates, registers, authorities or portal procedures.
Minimum-wage rates, holidays, working-hours permissions, licences and local welfare obligations require State-specific verification.
Record Gazette number, effective date and supersession status in the location compliance register.

Practical examples and calculations

Classify the worker and establishment, identify the operative provision and notified instrument on the event date, compute the entitlement or exposure from source records, obtain approval, complete the filing/payment/action, and retain evidence. Do not use a portal value or payroll label as a substitute for the statutory test.

Calculation/control template: Control calculation: verified population or transaction base × applicable notified rate/amount × eligible period, adjusted for statutory inclusions, exclusions, ceilings, interest, compensation and prior payments. Reperform the calculation from retained source data.

Finin2min implementation explanation

Maintain a controlled implementation file for Chapter III - Trade unions: coverage and event date, operative Central/State instrument, responsible owner, approval and authority, form/portal step, due date, calculation basis, supporting evidence, exception, escalation and closure proof. Reconcile payroll, HR, finance, contractor and legal records before sign-off.

Practical transaction application

Apply the chapter to workforce restructuring, standing orders, union recognition, disciplinary action, settlement drafting, transfer of undertaking, lay-off, retrenchment, closure and industrial-dispute strategy. Build the transaction timeline before notices or board approvals are issued.

Authority, consent and execution controls

Map powers among the board, occupier/employer, HR, disciplinary authority, authorised signatory and legal team. Verify delegation, standing orders, service rules, union/negotiating-council status and government permission or notice requirements; informal consent cannot cure a mandatory statutory step.

Stamp duty and registration alerts

Industrial settlements, service instruments and transfer documents may attract State stamp consequences depending on form and subject matter. Statutory filing, publication or registration under labour law is separate from document registration under the Registration Act and stamping under State law.

Evidence and document-retention checklist

Retain the operative law/rule version, classification note, approvals, signed instruments, statutory forms, portal acknowledgements, registers, calculations, bank proof, correspondence, inspection records, service proof, decision and appeal file. Apply the longer of the statutory retention rule, litigation hold, tax/audit need and contractual requirement; restrict access to personal and sensitive data.

Performance, delivery and payment controls

Create a milestone file for notice, consultation, permission, compensation, re-skilling contribution, service of orders and payment. No restructuring should close until payroll, bank proof, employee-wise computation, statutory filing and possession/access controls reconcile.

Breach, loss, mitigation and remedy framework

On detecting a breach, stop continuing exposure, preserve evidence, quantify employee and government dues, identify affected persons, make lawful corrective payment/filing, notify the authorised decision-maker, assess self-disclosure or compounding where available, and reserve contractual recovery against responsible vendors without delaying statutory remediation.

Limitation and forum controls

Use the conciliation officer, tribunal, national industrial tribunal, appellate channel or other prescribed forum as applicable. Track the dispute date, cause of action, pending proceedings, protected status and service of notices; private jurisdiction clauses cannot override the statutory adjudication scheme.

Arbitration and mediation interface

Voluntary arbitration and settlement mechanisms may be available where the Code permits. Draft the reference, issues, arbitrator appointment, publication/filing and settlement authority carefully; mediation is useful for commercial terms but must preserve non-waivable worker protections.

Company, partnership, GST and tax overlays

For a company, align board/delegation and officer-in-default controls; for an LLP or partnership, identify the designated partner/partner and authorised employer representative. Labour dues can affect transaction price, indemnities, director/partner exposure and insolvency claims. Salary/TDS, perquisite, contractor TDS, GST on outsourced services and accounting provisions must be reconciled without treating tax treatment as proof of labour-law classification.

Finin2min Q&A

Which law and version should be applied?

Use the current text of Industrial Relations Code, 2020, the commencement notification, the applicable Central or State Rules and any later instrument effective on the event date.

How is the appropriate Government identified?

Classify ownership/control, sector, establishment and contractor relationship before selecting the Central or State authority.

Can a company policy override the statutory protection?

No. A policy may improve a benefit or control, but it cannot contract out of a mandatory statutory floor.

What evidence should be retained?

Retain the classification memo, source instrument, form/portal record, calculation, approval, employee communication, acknowledgement and payment or authority proof.

Do the Central Rules apply to every establishment?

No. They govern the Central sphere. State Rules and State notifications must be checked where the State is the appropriate Government.

How should a historical event be tested?

Apply the law and subordinate instrument effective on the event date, then use the repeal-and-savings provision for pending rights and proceedings.

What happens when portal practice conflicts with the statute?

Record the conflict, follow the higher legal instrument, seek authority clarification where necessary and preserve screenshots and correspondence.

Can criminal and monetary consequences arise together?

They may. Separate wages/benefits, interest, damages, civil penalty, prosecution, compounding and director/officer liability.

Is a contractor arrangement enough to shift liability?

No. Principal-employer and contractor liabilities depend on the specific provision and facts; the contract should allocate evidence and recovery without diluting worker rights.

What is the first professional review step?

Freeze the event date and facts, identify the applicable provision, then map Rules, forms, notification status, authority, limitation and evidence.

What is the operational focus of section 5 - Registrar of Trade Unions?

The section must be decomposed into actor, trigger, threshold, procedure, exception, consequence and evidence. Read the full official text and the mapped Rules before applying the Finin2min control summary.

What is the operational focus of section 6 - Criteria for registration?

What is the operational focus of section 7 - Provisions to be contained in constitution or rules of Trade Union?

What is the operational focus of section 8 - Application for registration, alteration of name and procedure thereof?

What is the operational focus of section 9 - Registration of Trade Union and cancellation thereof?

What is the operational focus of section 10 - Appeal against non-registration or cancellation of registration?

What is the operational focus of section 11 - Communication to Trade Union and change in its registration particulars?

What is the operational focus of section 12 - Incorporation of a registered Trade Union?