Trade Union explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter XIII of the Industrial Relations (Gujarat) Rules, 2021 (rules 41 to 66) is printed after the miscellaneous chapter and runs on among the Forms. It covers registration of trade unions, fees, returns and audit, and the recognition of a sole negotiating union or negotiating council with which an employer deals.
The rules are the Industrial Relations (Gujarat) Rules, 2021, as notified on 5 October 2021 (No. KHR-2021-129-IDA-122020-539471-M(2)), in force from the commencement of the Industrial Relations Code, 2020. Registration is by application in Form XII with an affidavit; the fee is Rs.1000 for a union with 1000 members or more and Rs.500 for fewer (rule 44). The annual return in Form XXI goes in by 30 April each year (rule 53).
Later amendments and State notifications under these rules should be checked in the State Gazette.
Commencement and Central rules
Rule 1(3) reads: "They shall come into the force from the commencement of the Industrial Relations Code, 2020." The four Labour Codes were brought into force from 21 November 2025. The Central rule on recognition is explained in rule 9 of the Central Rules. Employers meet these rules mostly when a union claims recognition or supplies protected-worker names, and our employment and labour law advisory service can help with both.
What a union must do, and what an employer should know
| Matter | Rule | Form or register | Time limit or figure as printed | Authority |
|---|---|---|---|---|
| Application for registration | 41 | Form XII with affidavit, electronically or otherwise | Not stated | Registrar |
| Certificate of registration | 42 | Form XIII | Not stated | Registrar |
| Register of Trade Unions | 43 | Form XIV | Not stated | Registrar |
| Registration fee | 44(1) | Rs.1000 (membership 1000 or above); Rs.500 (less than 1000) | Registrar | |
| Minimum subscription | 44(2) | One hundred and twenty rupees per annum (unorganised sector); two hundred and forty rupees per annum (organised sector) | Union | |
| Withdrawal or cancellation | 45 | Form XV | Not stated | Registrar |
| Appeal against Registrar's order | 46 | Appeal | Within ninety days of the order | Appellate authority under section 10 |
| Dispute application to Tribunal | 47 | Form XVI | Not stated | Tribunal, under intimation to the Registrar |
| Change in particulars or rules | 48 | Form XVII | Within fourteen days of the change; fee Rs. 250 per set of alterations | Registrar |
| Change of name | 49 | Form XVIII | Not stated | Registrar |
| Amalgamation | 50 | Form XIX, in duplicate | Not stated | Registrar |
| Dissolution | 51 | Form XX | Within fourteen days | Registrar |
| Annual return | 53 | Form XXI | By 30 April each year | Registrar |
On dissolution, the Registrar divides the funds among members in proportion to the subscriptions each contributed (rule 52). An application for withdrawal or cancellation is approved only after the Registrar verifies approval in a general meeting of the union or by a majority of members (rule 45(2)).
Audit and books (rules 54 to 58)
The annual audit is by an auditor authorised to audit company accounts under sections 139 and 141 of the Companies Act, 2013. Rule 54 allows other auditors for smaller unions, on the membership at any time in the year ending 31 December:
| Membership did not exceed | Who may audit |
|---|---|
| 2000 | An examiner of local fund accounts; a local fund auditor appointed by the State Government; or a person with a Government audit or accounts background on a pension of not less than Rs. 22,000 per mensem |
| 1000 | A pensioner from a Government audit or accounts department with a pension of not less than Rs. 17,000 per mensem; or a co-operative societies auditor appointed by the Government, the Registrar of Co-operative Societies or a recognised State co-operative organisation |
| 500 | Any two members of the union |
For a federation, the thresholds are read against affiliated unions of 50, 15 or 5. A person entrusted with any funds or securities of the union cannot audit it (rule 55). The auditor verifies the return against the accounts and signs the declaration appended to Form XXI, stating any unauthorised payment, any deficiency or loss through negligence or misconduct, and any sum not brought to account (rule 56). Political funds are audited with the general account (rule 57). A union maintains a membership and subscription register, receipts and disbursements registers, minutes books, a register of stocks, tools and plant, a political fund register if applicable, a vouchers file and machine-numbered subscription receipt books (rule 58).
Inspection of the Register of Trade Unions costs Rs 100 (One hundred rupees); a member's inspection of each union document held by the Registrar also costs Rs. 100 (rule 59).
Sole negotiating union or negotiating council (rules 60 to 64)
This is the part an employer deals with directly.
- Claim (rule 61). A union claiming to be sole negotiating union, or seeking inclusion in a negotiating council, applies to the establishment with the list of its members there. Where there is more than one union, a union claiming recognition must have completed six months after its registration; this condition does not apply where there is only one union. Membership counts only members who paid subscriptions for at least three months during the six months immediately preceding the reckoning.
- Verification (rule 62). The establishment extends the facility of deducting union subscription from the wages of a worker who authorises it in writing, and the amount is deposited electronically or otherwise in the union's official bank account. For a worker in several unions, the last subscription deducted counts.
- Disputes (rule 63). The decision of the authorities notified under section 5 is final and binding on the parties.
- Facilities (rule 64). The facilities under section 14(7) are mutually decided by the establishment and the negotiating union or council.
- Union's duties (rule 60). The executive committee meets at intervals of not more than three months, and all resolutions are recorded in a minute book.
Union funds (rules 65 and 66)
Rule 65 lists the objects on which a union's general funds may be spent, ranging from office-bearers' pay and audit costs to legal proceedings, trade disputes and member benefits; contributions to causes benefiting workmen generally may not exceed one-fourth of the year's combined gross income and opening balance. Rule 66 allows a separate political fund from separately levied contributions.
A worked example
Kalupur Engineering Workers Union has 1,150 members at a Gandhinagar plant. It applies in Form XII with an affidavit and pays Rs.1000 on registration. Having been registered for more than six months, it claims recognition from the plant by sending its list of members; the plant verifies by counting only those who paid subscription for at least three of the preceding six months, deducting subscription where workers authorise it in writing. The union files Form XXI by 30 April each year.
Need help with a recognition claim?
A recognition claim turns on membership counts, subscription periods and verification. Our employment and labour law advisory team can work through the criteria in rules 61 and 62 with you.
Key takeaways
- Registration application is Form XII with an affidavit; fee Rs.1000 or Rs.500 depending on 1000 members.
- Minimum annual subscription is Rs. 120 (unorganised) or Rs. 240 (organised).
- Appeal against the Registrar is due within ninety days; changes within fourteen days.
- Annual return Form XXI is due by 30 April; audit rules vary by membership.
- Recognition needs six months of registration (where there are several unions) and three months' paid subscription in the preceding six.
Read next
- Industrial Relations (Gujarat) Rules, 2021: works committee and grievance redressal committee
- Industrial Relations (Gujarat) Rules, 2021: compounding of offences, protected workers and Forms
- Rule 9 of the Central Rules: recognition of negotiating union or council
Disclaimer: Based on the State or Union territory rules named above, as notified under the Labour Codes and consulted on 4 October 2026. Later amendments, State notifications, fees and forms should be checked in the State Gazette and on the State labour department website. This article is general information, not legal advice; check the official text before acting.