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.
Rules 8 to 23 of the Industrial Relation (Bihar) Rules, 2026 cover the trade union side of the Industrial Relations Code: minimum subscription, audit, registration fees and forms, the annual return, recognition of a negotiating union or council in an establishment, and recognition as a State Trade Union. Employers meet these rules when a union claims to be the sole negotiating union or asks for space and verification.
The rules are the Industrial Relation (Bihar) Rules, 2026, as notified in the Bihar Gazette (Extraordinary) No. Patna 698 of 1 July 2026. Rule 1(iii) says they come into force on the date of their publication in the Official Gazette. Registration costs Rs. 500 and alterations of rules Rs. 100 a set (rule 10). The annual return is filed electronically by the 31st day of July in Form IX (rule 22). A single registered union is recognised as sole negotiating union only if 30% or more of the workers are its members (rule 16(2)).
Later amendments and State notifications under these rules should be checked in the State Gazette.
Registration of a trade union (rules 10 to 15)
An application for registration goes to the Registrar through electronic mode, with a declaration affirming the authenticity and correctness of the information, and an affidavit in Form III that none of the executive members or office bearers has been convicted of an offence involving moral turpitude (rule 10(1)). The application is in Form V and the certificate in Form VI (rule 12). The Registrar enters the name and particulars in the register in Form VII, kept electronically (rule 13(1)).
| Item | Rule | As printed |
|---|---|---|
| Registration fee | 10(3) | Rs. 500/- (Rs. Five Hundred) |
| Alteration of rules or by-laws | 10(4) | Rs. 100/- (Rs. One Hundred) for each set of alterations made simultaneously |
| Existing unions | 10(2) | A union validly registered under the Trade Unions Act, 1926 immediately before commencement of the Code files a statement with its executive constitution and updated rules within 3 months |
| Statement of assets and liabilities | 11 | In Form IV, electronically, with a copy of the annual audit report |
| Withdrawal or cancellation | 13(2) | After verification by the authority notified by the State Government; the Registrar may use Aadhar Identification for verification (13(3)) |
| Appeal to Tribunal | 14 | Within 60 days from the date of refusal of the application or cancellation of the certificate |
| Notices to a union | 15 | Sent to the head office address in Form VII, by registered post and electronically; communications from the union to the Registrar only in electronic mode |
An employer deals with the Registrar rarely, but it matters when a union's status is in question. An employment and labour law advisory review can help an employer check what a union's registration certificate and latest return show.
Subscription, audit and the political fund (rules 8, 9 and 18)
Rule 8 sets the minimum subscription of a member: not less than Fifty rupees per annum for rural and unorganized sector workers, and Two hundred rupees per annum for workers in any other cases. Rule 18(2) applies rule 8 for section 15(4).
The annual audit of a registered union or federation is conducted by an auditor authorised to audit company accounts under section 139 of the Companies Act, 2013. A union whose membership did not at any time in the financial year exceed 250 may have its accounts audited by any two members (rule 9(1)). The auditor signs the declaration in Form II and shows separately in what respect the return is found incorrect, unvouched or not in accordance with the Act (rule 9(2)).
The rules print no separate rule on the political fund. What they say is that audit of the political funds of a registered union is carried out along with the general account audit by the same auditor (rule 9 proviso), and Form IX records the number of members contributing to the political fund and the amount of the political fund. Rule 18(1) lists the objects on which general funds may be spent, which include office-bearer salaries, administration and audit expenses, legal proceedings, industrial disputes, benefits to members, a periodical, and contributions to causes benefiting workmen in general, limited to one-fourth of the combined total of gross income accrued during the year and the opening balance, plus any other object notified by the State Government.
The annual return (rule 22)
The annual return under section 26 is submitted electronically to the Registrar by the 31st day of July in each year, in Form IX. Part A gives the union's name, address, certificate number, classification, affiliation, membership figures and political fund contributors; Part B is the statement of liabilities and assets with the list of securities, officers appointed and election dates.
Negotiating union or council (rules 16 and 17)
Rule 16(1) lists the matters on which a negotiating union or council may negotiate with the employer: classification of grades and categories; orders under standing orders; wages including wage period, dearness allowance, bonus, increment and allowances; hours of work, rest days, working days in a week, intervals and shifts; leave with wages and holidays; promotion, transfer policy and disciplinary procedures; quarter allotment policy; safety, health and working conditions; other service conditions; and any other matter agreed.
Where an establishment has only one registered trade union, the employer recognises it as sole negotiating union only if, at the time negotiation is initiated, 30% or more of the total workers are its members (rule 16(2)). Verification of workers on the muster roll is made in the presence of an authority not below the rank of Joint Labour Commissioner, as notified by the State Government (rule 17(1)). The employer provides reasonable space for negotiation to the recognised union or council (rule 17(2)). The Labour Resources and Migrant Workers Welfare Department may notify further guidelines by Gazette notification (rule 17(3)). The Central rule on recognition is explained in our post on rule 9 of the Central Rules, recognition of negotiating union or council.
Tribunal application, amalgamation, dissolution and State Trade Union (rules 19 to 23)
- Application to the Tribunal (rule 19). Under section 22(1), in Form VIII; the mode of making the application is decided by the State Government through Gazette notification.
- Amalgamation (rule 20). Where the head office of the amalgamated union is in Bihar, the Registrar consults the Registrars in other States before registering it; the new union gets a number in the Form VII register and a new certificate in Form VI.
- Dissolution (rule 21). The Registrar divides the funds in proportion to the amounts contributed by members on roll at dissolution; if a member dies after dissolution but before distribution, his sum goes to his legal dependents.
- State Trade Union (rule 23). The State Government may recognise a union or federation with a combined verified membership of Twenty-Five Thousand or more and presence in at least four types of industries in the State. The State may give preference to such unions when constituting tripartite forums. A dispute on recognition is finally decided by the Tribunal constituted in the Capital of the State.
A worked example
Rohtas Sugar Mills Ltd has 600 workers, and only one registered union, Rohtas Mazdoor Sangh. The union claims sole negotiating status. The company checks the union's membership: if at the time negotiation begins 30% or more of its workers are members, rule 16(2) lets it recognise the union as sole negotiating union; the muster-roll verification takes place before an authority not below Joint Labour Commissioner. The company gives the union reasonable space for negotiation and, if the union later files its annual return in Form IX by 31 July, can ask to see the return.
Need help with union recognition in Bihar?
Deciding whether a union meets the 30% threshold, and how to verify the muster roll, is a point where an error can start a dispute. Our employment and labour law advisory team can review the membership claim against rules 16 and 17 and prepare the employer's file.
Key takeaways
- Registration fee is Rs. 500; alteration of rules is Rs. 100 for each set (rule 10).
- Appeal against refusal or cancellation goes to the Tribunal within 60 days (rule 14).
- Annual return in Form IX is due electronically by the 31st day of July (rule 22).
- A single registered union is the sole negotiating union only at 30% or more of the workers (rule 16(2)).
- State Trade Union recognition needs verified membership of Twenty-Five Thousand or more in at least four types of industries (rule 23).
Read next
- Industrial Relation (Bihar) Rules, 2026: the Works Committee and the Grievance Redressal Committee
- Industrial Relation (Bihar) Rules, 2026: compounding of offences, miscellaneous rules 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.