Setting Up of Business, Industrial and Labour Laws · The Industrial Relations Code, 2020

Trade Unions under the Industrial Relations Code: Registration, Recognition and Rights

Updated 11 October 2026 · Fact-checked

A trade union registers with the Registrar under Sections 8 and 9 of the Industrial Relations Code, 2020. Recognition is separate and comes from the employer under Section 14. A union with 51% or more of muster-roll workers is the sole negotiating union. Otherwise a negotiating council is formed from unions with at least 20% support.

Understand Trade Unions: Registration, Recognition and Rights

A trade union is a body of workers formed to protect their interests and bargain with the employer. Under the Code, a union must first be registered. Registration gives it a certificate from the Registrar, and that certificate is conclusive evidence that the union is registered under the Code (Section 9(2)).

Registration and recognition are two different things. Registration is done by the Registrar. Recognition is done by the employer, for the purpose of negotiating on prescribed matters. Many students mix these up and lose marks.

Section 14 decides who speaks for the workers. If only one registered union works in the establishment, the employer recognises it as the sole negotiating union, subject to prescribed criteria. If several unions exist and one has the support of 51% or more of the workers on the muster roll, that union becomes the sole negotiating union.

If no union reaches 51%, the employer constitutes a negotiating council. It has representatives of unions that have the support of at least 20% of the workers on the muster roll. Each union gets one representative for each 20% of support, and also for the remainder. Agreement in the council needs a majority of the union representatives.

Recognition lasts three years, or a longer period agreed by the employer and the union, up to five years in total. The Code also covers refusal and cancellation of registration, appeal to the Tribunal, change of name and amalgamation.

Key rules to remember

Application for registration (Section 8(1)): Application to Registrar + affidavit declaration + rules and adopting resolution + resolution authorising applicants (+ resolutions of each member union for a federation); The application can be made electronically or otherwise. If the union existed for more than one year, add a general statement of assets and liabilities (Section 8(2)).
Name rule (Sections 8(4) and 24(4)): Identical or deceptively similar name → Registrar requires alteration and refuses registration (or change of name) until then; The test is whether the name is likely to deceive the public or members of either union.
Cancellation grounds (Section 9(5)): (i) union's own application; (ii) contravention of Code, rules, constitution; (iii) members below 10% of total workers or 100 workers, whichever is less; At least 60 days' written notice with grounds is needed, unless cancellation is on the union's own application. Cancellation is mandatory if a Tribunal orders it (Section 9(6)). Reasons must be recorded and communicated (Section 9(7)).
Appeal (Section 10): Refusal or cancellation → appeal to Tribunal within the prescribed period; The Tribunal can condone delay for sufficient reason or unavoidable circumstances. It can dismiss the appeal, direct registration, or set aside the cancellation.
Sole negotiating union (Section 14(2) and (3)): One registered union → recognised as sole negotiating union (subject to prescribed criteria). Several unions → union with ≥ 51% of muster-roll workers' support; The support is verified in the prescribed manner.
Negotiating council (Section 14(4) and (5)): No union at 51% → council of unions with ≥ 20% support; one representative per 20% and for the remainder; agreement by majority of representatives; The employer constitutes the council.
Validity of recognition (Section 14(6)): 3 years, extendable by mutual decision, total not exceeding 5 years; This applies to recognition under sub-sections (2) and (3) and to a council under sub-section (4).
Change of name and amalgamation (Section 24): Name change: consent of ≥ two-thirds of total members. Notice signed by secretary and 7 members (of each union in an amalgamation); A name change takes effect from the date of registration. Rights, obligations and legal proceedings are not affected (Section 24(7)).

How to solve Trade Unions: Registration, Recognition and Rights questions

Use this method for any question on trade unions under the Code. First decide whether the question is about registration, recognition or a change in the union's status.

1Identify the stage: registration (Sections 8-10), recognition (Section 14) or change of name or amalgamation (Section 24).
2State the rule in plain words with the section number.
3List the facts that matter: number of unions, percentage of muster-roll support, membership figures, dates and notices.
4Apply the numbers. For recognition, test 51% first, then 20% for the council. For cancellation, test the membership floor of 10% or 100 workers, whichever is less.
5Check procedure: 60 days' notice, recorded reasons, appeal to the Tribunal, signatories for a notice.
6Write a clear conclusion that answers the exact question asked.

Quickest way: The 51-20 test for recognition

When to use it: Use it when a problem gives several unions with percentage support and asks who negotiates.

Count registered unions. If there is one, it is the sole negotiating union, subject to prescribed criteria.
If there are several, check whether any union has 51% or more of muster-roll workers.
If yes, that union is the sole negotiating union.
If no, list unions with at least 20% support. They form the negotiating council.
Give one seat per 20% of support, with an extra seat for the remainder, and write the section numbers.

Common mistakes in Trade Unions: Registration, Recognition and Rights

Saying the Registrar recognises the union as negotiating union.
Registration and recognition sound alike.
Fix: Registrar registers (Section 9). The employer recognises or constitutes the council (Section 14).
Using 50% instead of 51% for sole negotiating union.
Students remember 'majority'.
Fix: Section 14(3) says fifty-one per cent. or more of workers on the muster roll.
Counting only union members instead of muster-roll workers for the council threshold.
Students overlook the base used in Section 14(4).
Fix: The 20% threshold is of the total workers on the muster roll, verified in the prescribed manner.
Forgetting the 60 days' notice before cancellation.
Students focus on the grounds and skip the proviso.
Fix: Notice is mandatory unless cancellation is on the union's own application. A cancellation ordered by a Tribunal under Section 9(6) is mandatory for the Registrar.
Writing the cancellation floor as a flat 10% of workers.
Half the clause is remembered.
Fix: The test is below 10% of total workers or 100 workers, whichever is less.
Stating recognition lasts five years.
Students remember only the maximum.
Fix: The period is three years, extendable by mutual decision to a total of not more than five years.

Worked examples

Example 1

In Sundaram Auto Parts Ltd., three registered unions function. The muster roll has 1,000 workers. Union A has the support of 450 workers, Union B 350 and Union C 150. Who negotiates with the employer, and how is it decided?

Show the solution

Rule: Section 14(3) gives sole negotiating union status to a union with 51% or more muster-roll support. Otherwise Section 14(4) requires a negotiating council.
51% of 1,000 = 510 workers. Union A has 450 (45%), which is below 510. No union qualifies as sole negotiating union.
So the employer must constitute a negotiating council under Section 14(4).
Eligibility needs at least 20% support, which is 200 workers. Union A (450) and Union B (350) qualify. Union C (150, 15%) does not.
Representation is one for each 20% and for the remainder. Union A: 45% gives 2 full blocks of 20% and a remainder of 5%, so 3 representatives. Union B: 35% gives 1 full block and a remainder of 15%, so 2 representatives.
The council has 5 representatives. An agreement is reached if a majority of them, at least 3, agree (Section 14(5)).

Answer: No union is the sole negotiating union. The employer constitutes a negotiating council of Unions A and B with 3 and 2 representatives. Union C is excluded. Agreement needs a majority of the 5 representatives.

Example 2

A registered trade union has 80 members, and the establishment has 1,200 workers. The Registrar proposes to cancel its registration. Can he do so, and what procedure must he follow?

Show the solution

Rule: Section 9(5)(iii) allows cancellation if membership falls below 10% of total workers or 100 workers, whichever is less.
10% of 1,200 = 120. The lesser of 120 and 100 is 100.
The union has 80 members, which is below 100. The ground is available.
Procedure: the Registrar must give at least sixty days' previous written notice stating the grounds, since this is not cancellation on the union's own application.
He must record his reasons and communicate them in writing to the union (Section 9(7)).
Remedy: the union can appeal to the Tribunal within the prescribed period under Section 10(1). The Tribunal may dismiss the appeal or set aside the cancellation.

Answer: Yes. Membership of 80 is below the floor of 100, which is the lesser figure. The Registrar can cancel after giving 60 days' written notice and recording reasons. The union may appeal to the Tribunal under Section 10.

Exam tips

Write the section number with every rule. Sections 8, 9, 10, 14 and 24 are the ones to remember.
Present the Section 14 hierarchy as a short ladder: one union, then 51%, then the 20% council.
In numerical problems, show the percentage calculation line by line, then give the conclusion.
Keep registration (Registrar) and recognition (employer) clearly apart in every answer.
For a long answer, add the Tribunal appeal under Section 10 as the remedy.

Practice questions from The Industrial Relations Code, 2020

Trade Unions: Registration, Recognition and Rights in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CS ProfessionalTrade Unions: Registration, Recognition and Rights

Trade Unions: Registration, Recognition and Rights: frequently asked questions

Who registers a trade union under the Industrial Relations Code, 2020?

The Registrar registers it under Section 9 after an application under Section 8. On registration he issues a certificate, which is conclusive evidence of registration.

What is the difference between a negotiating union and a negotiating council?

A negotiating union is a single union recognised as the sole bargaining voice. It is either the only registered union or one with 51% or more muster-roll support. A negotiating council is formed when no union has 51%, and it includes unions with at least 20% support.

How long does recognition of a negotiating union last?

It is valid for three years from recognition or constitution. The employer and the union can mutually extend it, but the total cannot exceed five years.

Can a trade union appeal if its registration is refused or cancelled?

Yes. A person aggrieved can appeal to the Tribunal within the prescribed period under Section 10. The Tribunal can condone delay for sufficient reason or unavoidable circumstances.

What consent is needed to change a trade union's name?

Consent of not less than two-thirds of the total members is needed under Section 24(1). Notice signed by the secretary and seven members goes to the Registrar, and the change takes effect from the date of registration.