The Trade Unions Act, 1926 was the law under which Indian workers registered a union and gave it legal status. It stands repealed from 21 November 2025, and its rules now live in Chapter III of the Industrial Relations Code, 2020, which also adds something the 1926 Act never had: a duty on the employer to recognise a negotiating union.

What carried over from the 1926 Act

Most of the old machinery survives with new section numbers. Any seven members can apply to the Registrar of Trade Unions, but the union must count at least 10 per cent of the workers or 100 workers, whichever is less, in the establishment or industry it is connected with (section 6). That floor dates from a 2001 amendment, and a union that later falls below it risks cancellation. A registered union is a body corporate that can own property and sue (section 12), its members are shielded from civil suits for acts done in furtherance of an industrial dispute (section 16), and disputes about its registration or elections go to the Industrial Tribunal, not a civil court (section 22).

Outsiders are capped too: all office-bearers except one-third or five, whichever is less, must actually work in the establishment or industry, and a retired or retrenched employee is not an outsider (section 23).

The new part: recognition for bargaining

The 1926 Act never obliged an employer to bargain with a registered union. Section 14 of the Code does. A union backed by 51 per cent or more of workers on the muster roll becomes the sole negotiating union. If no union reaches 51 per cent, the employer constitutes a negotiating council from unions with at least 20 per cent support each. Recognition lasts three years, extendable by mutual agreement to five in all.

Take a plant with 1,000 workers where Union A has 45 per cent support, Union B 30 per cent, Union C 15 per cent and Union D 10 per cent. Nobody crosses 51 per cent, so a council is formed with A and B only; C and D get no seat. The Industrial Relations (Central) Rules, 2026 have a verification officer check support by secret ballot, and say a lone registered union needs at least 30 per cent membership to be recognised. The negotiating union also nominates worker members of the grievance redressal committee.

Frequently asked questions

Is a union registered under the 1926 Act still valid?

Yes. Section 9(4) treats it as registered under the Code, but it must file a statement with the Registrar that its executive complies with the Code, along with rules updated under section 7. Ask for a copy before you rely on its status in a wage settlement.

Must workers register a union to form one?

No, registration is the union’s choice. But only a registered union can be recognised under section 14 or claim the immunities in sections 16 and 17.

Who decides a dispute between two rival unions?

The Industrial Tribunal for the area of the union’s registered office, under section 22. Strike-stage disputes with the employer go first to the conciliation officer.

State rules under the Code are still uneven, so check where your state stands on the labour codes tracker before acting on a recognition request.