Trade Union is any combination of persons, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers, or between workmen and workmen, or between employers and employers, and includes any federation of two or more trade unions. Under Indian law, it is defined in Section 2(h) of the Trade Unions Act, 1926, and its registration confers legal personality, civil and criminal immunities, and the right to represent workmen in industrial disputes.
Legal definition
The Trade Unions Act, 1926 provides the statutory definition:
Section 2(h): "Trade Union" means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, 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 Unions.
Registration of a trade union requires a minimum of seven members (for workmen's unions) or, in the case of establishments with fewer than seven workers, all workers may form a union. The application must be made to the Registrar of Trade Unions under Section 4, along with the rules of the union, a statement of its assets and liabilities, and the names and addresses of its members and office-bearers.
New law equivalent: The Industrial Relations Code, 2020, Section 2(zg) retains the definition of "Trade Union" in substantially similar terms. A significant new requirement under the Code is the concept of a sole "negotiating union" or "negotiating council" for collective bargaining, with thresholds of 51% or 20% membership respectively.
How courts have interpreted this term
B.R. Singh v. Union of India [(1989) 4 SCC 710]
The Supreme Court held that the right to form trade unions is a fundamental right guaranteed under Article 19(1)(c) of the Constitution, and the right to go on strike, while not a fundamental right, is a legitimate weapon available to trade unions for the purpose of collective bargaining. The Court emphasised that collective bargaining through trade unions is the principal mechanism for resolving industrial conflicts in a democratic society.
All India Bank Employees Association v. National Industrial Tribunal [AIR 1962 SC 171]
The Supreme Court held that while the right to form a trade union is a fundamental right under Article 19(1)(c), this right does not carry with it a guaranteed right to an effective collective bargaining or the right to strike. The right to form associations can be regulated by reasonable restrictions under Article 19(4). The legislature may impose conditions on the exercise of trade union activities without violating the fundamental right.
Registrar of Trade Unions v. Khedilal Swarnapuri [AIR 1958 MP 45, followed by SC]
The courts have consistently held that the function of the Registrar of Trade Unions is ministerial, not judicial. The Registrar must register a trade union if the technical requirements of Section 5 and Section 6 are satisfied and cannot refuse registration on the ground that another union already exists for the same class of workers.
Types of trade unions
Indian labour law recognises several categories:
- Registered trade unions: Trade unions registered under the Trade Unions Act, 1926, enjoying legal personality, civil and criminal immunities under Sections 15-18, and the right to constitute a general fund
- Unregistered trade unions: Combinations that function as trade unions but have not been registered; they lack statutory immunities and the right to represent workers before adjudicatory bodies
- Federations: Combinations of two or more registered trade unions, themselves registrable under Section 2(h)
- Recognised/representative trade unions: Under the Industrial Relations Code, 2020, a union with 51% or more membership in an establishment is recognised as the sole "negotiating union" for collective bargaining
Why this matters
Trade unions serve as the institutional voice of workmen in the Indian industrial relations framework. Registration confers critical legal advantages: immunity from civil suits for acts done in furtherance of a trade dispute (Section 18), protection of office-bearers from criminal conspiracy charges for lawful trade union agreements (Section 17), and the ability to represent workmen in proceedings before conciliation officers, labour courts, and industrial tribunals.
For employers, the existence of a registered trade union triggers specific obligations, including the duty not to interfere with the formation or administration of a union (a recognised unfair labour practice under the Fifth Schedule to the Industrial Disputes Act). Refusal to bargain in good faith with a recognised union can itself constitute an unfair labour practice.
A common misunderstanding is that only one trade union can exist in an establishment. Indian law permits multiple unions in the same establishment, which has led to inter-union rivalry. The Industrial Relations Code, 2020 attempts to address this through the negotiating union framework.
Related terms
Broader concepts:
Related activities:
Related concepts:
Frequently asked questions
How many members are needed to form a trade union in India?
Under Section 4 of the Trade Unions Act, 1926, a minimum of seven persons are required to apply for registration of a trade union. In establishments with fewer than seven workers, all workers may apply for registration. Under the Industrial Relations Code, 2020, the minimum membership requirement for registration remains at 10% of the workers or 100 workers, whichever is less, subject to a minimum of seven members.
Is the right to form a trade union a fundamental right?
Yes. The right to form associations and unions is guaranteed under Article 19(1)(c) of the Constitution of India. However, as held in All India Bank Employees Association v. NIT (1962), this right does not automatically include the right to collective bargaining or the right to strike. The state may impose reasonable restrictions under Article 19(4).
What immunities does a registered trade union enjoy?
A registered trade union enjoys immunity from civil suits for acts done in contemplation or furtherance of a trade dispute (Section 18), and its office-bearers are protected from criminal prosecution for conspiracy in respect of lawful trade union agreements (Section 17). These immunities do not extend to unregistered unions.
Can an employer refuse to recognise a trade union?
There is no statutory obligation to recognise a trade union under the Trade Unions Act, 1926. However, the Industrial Relations Code, 2020 introduces a mandatory recognition framework: a union with 51% or more membership in an establishment must be recognised as the sole negotiating union, and where no union meets this threshold, a negotiating council comprising unions with 20% or more membership must be formed.
This entry is part of the Veritect Indian Legal Glossary, a comprehensive reference of Indian legal terminology grounded in statutory text and judicial interpretation.
Last updated: 2026-03-27. Veritect provides this content for informational purposes and does not constitute legal advice.