Section 6: Criteria for registration of Trade Union

The Industrial Relations Code, 2020 (Act No. 35 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter III: Trade Unions
Competent Labour Forum
Act No. 35 of 2020

Legal Commentary & Landmark Judgments: Section 6

Section 6 of the Industrial Relations Code, 2020 establishes the statutory criteria and membership thresholds for the registration of Trade Unions, requiring at least ten percent or one hundred workers as members.

  • Core Legal Standard: Section 6 regulates the formation and statutory recognition of trade unions.
  • Sub-Section (1): Trade: Under sub-section (1), any seven or more members of a Trade Union may apply for registration.
  • Inquiry & Trial Mechanism: However, sub-section (2) establishes an indispensable statutory threshold: no Trade Union shall be registered unless at least ten percent 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 the application.

Furthermore, a registered Trade Union must maintain this statutory membership threshold at all times to retain its certificate of registration.

Key Landmark Precedents:
  • B.R. Singh v. Union of India (1989) 4 SCC 710: The Supreme Court held that while the right to form associations is guaranteed under Article 19(1)(c), the state can impose reasonable statutory regulations regarding trade union registration and minimum membership criteria to prevent multiplicity of fragmented, unrepresentative unions.
  • All India Bank Employees' Association v. National Industrial Tribunal (AIR 1962 SC 171): The Constitution Bench held that the fundamental right to form trade unions under Article 19(1)(c) does not carry with it a fundamental right to achieve every objective of the union or an unbridled right to recognition.
Legal Commentary:

Section 6 aims to eliminate the historic plague of 'pocket unions' and fragmented multi-unionism in Indian industry. By mandating a 10% or 100-worker minimum baseline, only substantial, representative bodies of workers can obtain statutory corporate status and immunities under the Code.