Sections 26 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 26 requires every registered Trade Union to file an annual return with the Registrar, send every rule change within fifteen days and submit to inspection. Section 27 lets the Central Government recognise a union or federation as a Central Trade Union, and a State Government a State Trade Union, in each case in the prescribed manner. The second is about status; the first is about compliance.
Every registered union must send the Registrar, each year, a general statement of receipts, expenditure, assets and liabilities for the year ending 31 December, plus a statement of changes of office-bearers and a corrected copy of its rules (s.26(1)). Every alteration of the rules must be sent within fifteen days (s.26(2)). The Registrar may inspect records at the registered office, or ask for them at a place not more than fifteen kilometres away (s.26(3)). Section 27 covers recognition at Central and State level.
Section 26: annual returns
What has to be filed, and when
Section 26(1)(a): every registered Trade Union shall "forward annually to the Registrar, on or before such date, in such form, audited in such manner and by such person, as may be prescribed, a general statement containing particulars of all receipts and expenditure of such registered Trade Union during the year ending on the 31st day of December next preceding such prescribed date, and of the assets and liabilities of the Trade Union existing on such 31st day of December."
Note what the Code fixes and what it leaves open:
| Item | Fixed by the Code | Left to the rules |
|---|---|---|
| Accounting period | Year ending 31 December | Nothing |
| Contents | Receipts, expenditure, assets and liabilities on 31 December | Form |
| Due date | "on or before such date" | The date |
| Audit | Must be audited | Manner, and by whom |
Section 26(1)(b) adds two attachments. Along with the general statement the union must forward:
- a statement showing changes of office-bearers made during the year to which the statement refers; and
- a copy of the rules of the Trade Union corrected up to the date of dispatch.
The Central Rules, 2026 (G.S.R. 342(E), 8 May 2026), in the text reviewed, do not prescribe the form, date or auditor for this return. The only reference to an annual return of a union is in rule 9, where a union applying for recognition as a negotiating union gives the employer a copy of its latest annual return submitted to the Registrar of Trade Unions. The return is therefore also a document an employer will see at recognition time. Keep it accurate. Where the State Government is the appropriate Government, check the State's rules for the prescribed form and date.
Unions that want a review of their accounts, rules and filing calendar can ask our legal consultation team.
Changes to the rules: fifteen days
Section 26(2): "A copy of every alteration made in the rules of a registered Trade Union shall be sent to the Registrar within fifteen days of the making of the alteration." The clock starts on the day of the alteration, not on the next annual return. This is separate from, and in addition to, the corrected copy sent with the yearly statement. The content that rules must carry is in s.7; see section 7.
Inspection: the fifteen-kilometre limit
Section 26(3): to examine the documents in s.26(1)(a), (b) and (2), the Registrar or an officer authorised by general or special order "may at all reasonable times inspect the certificate of registration, account books, registers and other documents, relating to a Trade Union, at its registered office or may require their production at such place as he may specify in this behalf, but no such place shall be at a distance of more than fifteen kilometres from the registered office of such Trade Union."
So the Registrar can go to the union, or call for the records at a place he names, which cannot be more than fifteen kilometres from the registered office. A union should therefore keep its registration certificate, account books and registers together and at the registered office.
Example (invented). A union passes an amendment to its rules on 3 March. A copy must reach the Registrar by 18 March, fifteen days later. The same amended text should also be the "corrected" copy sent with the annual return. If the Registrar later asks to inspect the account books, the union must produce them at its registered office or at the place the Registrar specifies, within fifteen kilometres.
The Code does not state the consequence of late filing in s.26 itself. Penalties and cancellation grounds sit elsewhere; for cancellation of registration see section 9. We do not assume a particular consequence here.
Section 27: recognition at Central and State level
Central Trade Union: section 27(1)
"Where the Central Government is of the opinion that it is necessary or expedient that a Trade Union or federation of Trade Unions is to be recognised as Central Trade Union at the Central level, it may recognise such Trade Union or federation of Trade Unions as Central Trade Union in such manner and for such purpose, as may be prescribed, and if any dispute arises in relation to such recognition, it shall be decided by such authority in such manner as may be prescribed by the Central Government."
State Trade Union: section 27(2)
The State Government has the same power: if of the opinion that it is necessary or expedient, it "may recognise such Trade Union or federation of Trade Unions as State Trade Union at the State level", in the prescribed manner and for the prescribed purpose, and a dispute about the recognition is decided by the authority the State Government prescribes.
| Level | Who decides | Test | Disputes decided by |
|---|---|---|---|
| Central | Central Government | Opinion that it is necessary or expedient | Authority prescribed by the Central Government |
| State | State Government | Opinion that it is necessary or expedient | Authority prescribed by the State Government |
Three points for the reader. First, this is discretionary: the governments "may" recognise. Second, it applies to a union or a federation. Third, it is different from the negotiating union or council recognition under s.14, which is done by the employer within an establishment; see section 14. The Code does not say what the purposes of Central or State recognition are; those are "as may be prescribed", and the Central Rules, as reviewed, contain no rule setting them.
Need help with filings and recognition?
Missing an annual return, a rule-change notice or a record the Registrar calls for creates avoidable friction. Our legal consultation team can build a yearly calendar for your union, check the corrected rules copy and prepare the office-bearer statement.
Key takeaways
- Annual general statement for the year ending 31 December, audited as prescribed, with a statement of office-bearer changes and a corrected copy of the rules (s.26(1)).
- Every rule alteration goes to the Registrar within fifteen days (s.26(2)).
- The Registrar may inspect at the registered office or call for documents at a place within fifteen kilometres (s.26(3)).
- Central and State Governments may recognise a union or federation as a Central or State Trade Union, in the prescribed manner (s.27).
- Form, date and auditor for the return are not in the Central Rules text reviewed; check the applicable rules.
Read next
- Section 24-25: change of name, amalgamation and dissolution
- Section 14: negotiating union and negotiating council
- Section 28-29: application of standing orders and model standing orders
- The four labour codes: a complete guide
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.