Section 15 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.
Section 15 controls what a registered Trade Union may do with its money. The general fund can be spent only on the objects the rules prescribe. A separate fund, built from separate contributions, may be used for the civic and political interests of members, and no member can be forced to pay into it.
The general fund of a registered Trade Union "shall not be spent on any objects other than such objects as may be prescribed" (s.15(1)). The union may set up a separate fund for the civic and political interests of members (s.15(2)). No member can be compelled to contribute to it, and a non-contributor cannot be disadvantaged or refused admission (s.15(3)). Subscriptions are as prescribed (s.15(4)).
The four sub-sections at a glance
| Sub-section | What it says | Who it matters to |
|---|---|---|
| 15(1) | General funds may be spent only on prescribed objects | Treasurer, executive, auditors |
| 15(2) | A separate fund may be constituted from separately levied contributions, for the civic and political interests of members, for prescribed objects | Executive, members |
| 15(3) | Contribution to the separate fund is voluntary; no disability or disadvantage for not contributing (except as to control or management of that fund); not a condition of admission | Every member and applicant |
| 15(4) | Subscriptions payable by members are as prescribed | Membership office, employer deducting subscription |
The general fund: a closed list
Section 15(1) is a restriction, not a permission. It does not list the objects itself. It says the general funds cannot be spent on anything other than the objects "as may be prescribed". In practice this means the union's treasurer must be able to match every payment to one of the prescribed objects. A payment outside the list is a misuse of the general fund, and a member who objects can raise it as a dispute about the administration or management of the union. Such disputes go to the Tribunal under section 22; see sections 22 and 23.
The word "prescribed" matters. Rules made under the Code fill in the detail. The Industrial Relations (Central) Rules, 2026 (G.S.R. 342(E), 8 May 2026) have 50 rules; in the text we reviewed there is no rule that sets out the objects of a union's general fund or the amount of subscriptions. The list of objects and the subscription rates are therefore, as far as the Central Rules go, still to be found in the rules made by the appropriate Government. Where the State Government is the appropriate Government, the State's own industrial relations rules apply. Check the rules that govern your union before acting, and take advice if the point is live. Our legal consultation desk can help with that.
The same list of objects is used elsewhere in the Code. Section 17 protects members from criminal conspiracy charges for agreements made to further "any such object of the Trade Union as is specified in section 15". So the list has a protective use as well as a limiting one. See sections 16 to 18.
The separate fund: civic and political interests
Section 15(2) lets a registered Trade Union "constitute a separate fund, from contributions separately levied for or made to that fund". Three things follow from the wording.
- It is optional. The word is "may". A union need not have a separate fund.
- The money must come in separately. Contributions are "separately levied for or made to" the fund. It is not a transfer out of the general fund.
- Payments are for a defined purpose. Payments may be made "for the promotion of the civic and political interests of its members, in furtherance of such objects as may be prescribed". The objects are again left to the rules.
Keeping the two pools apart is what makes the political fund defensible. Each rupee can be traced to a contribution made to that fund.
Voluntary contribution: section 15(3)
Section 15(3) is the member's protection. Its four parts:
- No member shall be compelled to contribute to the separate fund.
- A member who does not contribute shall not be excluded from any benefits of the Trade Union.
- Such a member shall not be placed "in any respect either directly or indirectly under any disability or at any disadvantage" compared with other members. The one exception is control or management of the separate fund itself.
- Contribution to the separate fund shall not be made a condition for admission to the Trade Union.
The exception is narrow. A member who does not pay into the separate fund may be kept out of deciding how that fund is run. Everything else, including voting on the union's general business, stands on equal footing.
Example (invented). A union's annual general meeting passes a resolution that every member must pay an additional levy into its separate fund, failing which the member loses access to the union's legal-aid scheme. The levy cannot be compulsory (s.15(3)), and denying a benefit for non-payment is the very disadvantage the sub-section prohibits. A member who is refused the legal-aid benefit can treat it as a dispute about the administration or management of the union and apply to the Tribunal (s.22).
Subscriptions: section 15(4)
Section 15(4) says the subscriptions payable by members "shall be such as may be prescribed". Section 7 requires a union's own rules to contain certain provisions, and the rules of the union must fit within what is prescribed. See section 7 on the rules of a Trade Union.
For employers, one provision of the Central Rules touches subscriptions. Under rule 9(7)(b), in a Central-sphere establishment, the employer deducts the subscription of members of the Trade Union on the basis of the written consent of the worker. That sits inside the rule on facilities for a negotiating union or council; see section 14. Payroll teams should therefore keep the worker's written consent on file before starting any deduction. Our payroll compliance audit covers this kind of deduction check.
What this means for different readers
- Union office-bearers: keep two sets of accounts, one for the general fund and one for any separate fund. Check each outgoing payment against the prescribed objects. Collect the separate-fund contribution only from those who choose to give it.
- Workers: you may decline the separate-fund contribution, and you cannot be refused admission or benefits for doing so.
- Employers and payroll: deduct union subscription only with written consent (Central-sphere), and never treat a separate-fund contribution as mandatory.
- Students: note the pattern. The Code states the principle and leaves the list to the rules.
Need help with trade union compliance?
If you advise a union or an employer on deductions, fund accounting or union rules, our legal consultation team can review the union's rules, the funds structure and the consent records against the Code and the rules that apply to your establishment.
Key takeaways
- The general fund can be spent only on prescribed objects (s.15(1)).
- A separate fund for civic and political interests is optional and built from separate contributions (s.15(2)).
- No member can be compelled to contribute, penalised for not contributing, or refused admission on that ground (s.15(3)).
- Subscriptions are as prescribed (s.15(4)); in Central-sphere establishments the employer deducts them only on the worker's written consent (rule 9(7)(b)).
- The Central Rules, as reviewed, do not list the objects; check the applicable rules.
Read next
- Section 16-18: immunity and enforceability of agreements
- Section 19-21: inspection of books, minors and disqualification of office-bearers
- Section 22-23: adjudication of trade union disputes
- Industrial disputes under the new labour codes
Disclaimer: Based on the Industrial Relations Code, 2020 (as enacted) and, where noted, the Industrial Relations (Central) Rules, 2026 (G.S.R. 342(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.