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Trade Unions

Obligations of registered trade unions

  1. The general funds of a registered trade union should be spent only for the objects specified such as, payment of salaries, allowances and expenses of its office bearers, its administrative and audit expenses, prosecution or defence af any legal proceeding for securing or protecting its rights, conduct of trade disputes, compensation for loss arising out of trade disputes, compensation for loss arising out of trade disputes, provision of educational, social or religious benefits and allowances on account of death, old age, sickness, accident or unemployment to its members, publication of labour journals etc. The trade union may set up a separate political fund for furtherance of civic and political interest of members. Contribution to this fund is not compulsory.
  2. The account books and membership register of the union should be kept open for inspection by any of its office-bearers.
  3. A copy of every alteration made in the rules of the union should be sent to the Registrar within 15 days of making the alteration.
  4. An annual statement of receipts and expenditure and assets and liabilities of the union for the year ending on the 31st December, prepared in the prescribed forms and duly audited should be sent to the Registrar within the prescribed time. This statement should be accompanied by a statement showing changes in office bearers during the year and a copy of the rules as amended up to date.
Offence Penalty
1. If the registered trade union/ its office bearers or members fail to give any notice or send any statement as required under the Act. Fine up to Rs. 5 plus additional fine up to Rs. 5 per week in case of continuing offence. (Maximum fine imposable Rs. 50)
2. If any person willfully makes any false entry in the annual statement of the union or its rules. Fine up to Rs. 500.
3. If any person, with intent to deceive, gives an incorrect copy of rules of the union to any member or a prospective member. Fine up to Rs. 200.

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