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Corporate Legal Framework

Notes Voluntary Recognition under the Code of Discipline, 1958

With the consensus of employers, employees and the Government, the following criteria for the
recognition of unions was drawn up under the Code of Discipline which was adopted at the 16th
Indian Labour Conference.

1. Where there is more than one union, a union claiming recognition should have been
functioning for at least one year after recognition. This condition does not apply where
there is only one union.

2. The membership of the union should cover at least 15% of the workers in the establishment
concerned. Membership should be counted only of those who had paid their subscriptions
for at least three months during the period of six months immediately preceding
recognition.
3. A union may claim to be recognised as a representative union for an industry in a local area
if it has a membership of at least 25 per cent of the workers of that industry in that area.
4. When a union has been recognised, there should be no change in the position for a period
of 2 years.
5. When there are several unions in an industry or establishment, the one with the largest
membership should be recognised.
6. A representative union for an industry in an area should have the right to represent
workers in all the establishments in the industry, but if a union of workers in a particular
establishment has a membership of 59% or more of workers it should have the right to deal
with matters of purely local interest, such as, for instance, the handling of the grievances
of its own members. All other workers who are not members of that union might either
operate through the representative union for the industry or seek redress directly.
7. Only those unions which follow the Code of Discipline would be entitled to recognition.
8. In the case of trade union federations not affiliated to any of the four central organisations

of labour, the question of recognition will have to be dealt with separately.

Verification of Trade Union Membership

Employers often face difficulties (even when observing the above criteria) while verifying the
majority character of the union to be recognised when there is more than one union. At present
the Labour Department, on the request of the management, does the verification work taking the

following things into account:
1. Details of existing unions in the unit, date of registration; whether the existing recognised
union has completed a two year period, whether any of the unions violated any stipulations
of the Code of Discipline etc. Within 10 days the unions claiming recognition and other
existing unions will have to produce documentary proof to the verifi cation offi cer:
details about membership, subscription list of members who have paid subscriptions for
3 months out of the preceding 6 months, money receipt counterfoils, books of account,
bank statements, etc.
2. Where there are two or more unions, all of them have to furnish the above details. If they

fail to produce the above data, the verifi cation officer may, after giving 10 days’ notice,
decide the issue as per the evidence collected and facts obtained.
3. The verifi cation process is done in the presence of unions furnishing the above data. The

muster rolls of the firm are generally checked to see whether the names tally with the
employment register.

250 LOVELY PROFESSIONAL UNIVERSITY