Section 7 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 7 of the Industrial Relations Code, 2020 is a drafting checklist. A Trade Union cannot be registered unless its executive is constituted as the Code requires and its rules cover twelve listed matters, from its name and objects to elections every three years, annual audit and how it may be dissolved. Anyone drafting or reviewing a union constitution should use it line by line.
A Trade Union is not entitled to registration unless its executive is constituted in accordance with the Code and its rules provide for matters (a) to (l) of s.7: name, objects, purposes of general funds, list of members, admission of members, subscription, benefits and fines, annual general body meeting, election of the executive every three years, safe custody of funds and annual audit, amendment of rules, and dissolution. Existing unions registered under the Trade Unions Act, 1926 must update their rules in line with s.7 (s.9(4) proviso).
The twelve matters
| Clause | The rules must provide for |
|---|---|
| (a) | The name of the Trade Union |
| (b) | The whole of the objects for which it was established |
| (c) | The whole of the purposes for which the general funds are applicable, all lawfully applicable under the Code |
| (d) | A list of members and adequate facilities for inspection by office-bearers and members |
| (e) | Admission of ordinary members, irrespective of craft or category, who are persons actually engaged or employed in the establishment, undertaking or industry (or its units, branches or offices) with which the union is connected; and admission of such number of honorary or temporary members who are not such workers and are not permitted under s.21 to be office-bearers |
| (f) | Payment of subscription by members and others, as prescribed |
| (g) | The conditions under which a member is entitled to a benefit assured by the rules, and under which any fine or forfeiture may be imposed |
| (h) | The annual general body meeting, the business to be transacted, including election of office-bearers |
| (i) | How members of the executive and other office-bearers are elected once in every three years and removed, and how casual vacancies are filled |
| (j) | Safe custody of funds, an annual audit in the prescribed manner, and adequate facilities for inspection of account books by office-bearers and members |
| (k) | How the rules may be amended, varied or rescinded |
| (l) | How the Trade Union may be dissolved |
The introductory words say the union must also have its executive constituted in accordance with the provisions of this Code. Two later sections set the constitution of the executive: section 21 lists disqualifications and section 23 sets the proportion of office-bearers who must be connected with the establishment or industry.
A legal consultation review of draft rules against this list is a quick way to avoid a refusal.
How to read the important clauses
Objects and funds: (b), (c)
Clause (b) requires "the whole of the objects", and clause (c) "the whole of the purposes" for which general funds are applicable. The word "whole" means the rules should be exhaustive, not illustrative. The purposes must be ones "to which such funds are lawfully applicable under this Code", and s.15(1) says general funds cannot be spent on objects other than those prescribed. See section 15 on general and separate funds. The text we work from does not list the prescribed objects; they are in rules, and for Trade Unions registered by a State Registrar, the State's rules apply.
Members: (d), (e), (f), (g)
- Membership list and inspection is a rule requirement here and a statutory right in s.19 (books of account and list of members open to inspection by an office-bearer or member at times provided in the rules).
- Ordinary members are persons actually engaged or employed in the establishment or industry. The phrase "irrespective of their craft or category" stops a union from limiting membership by craft where it is connected with the establishment or industry.
- Honorary or temporary members may be admitted, but only persons who are not permitted under s.21 to be office-bearers, and in such number as the rules fix, so they cannot form the executive.
- Benefits, fines and forfeiture: the rules must state the conditions, so a member knows when a fine may be imposed.
Meetings and elections: (h), (i)
Clause (h) fixes an annual general body meeting, with election of office-bearers as part of its business. Clause (i) requires the rules to state how the executive and other office-bearers are elected once in a period of every three years, how they are removed and how casual vacancies are filled. So a three-year term is the outer interval set by the Code for elections. The Code does not say that elections cannot be held earlier.
Funds, audit and inspection: (j)
The rules must provide for safe custody of funds, an annual audit in the prescribed manner and inspection of account books by office-bearers and members. Section 26 separately requires annual returns to the Registrar; see section 26.
Amendment and dissolution: (k), (l)
The rules must say how they are amended and how the union is dissolved. Section 26(2) requires a copy of every alteration made in the rules to be sent to the Registrar within fifteen days, and s.25 requires notice of dissolution to reach the Registrar within fourteen days of the dissolution. See change of name, amalgamation and dissolution.
Practical points
- Draft to the list. Use clauses (a) to (l) as headings in the union's constitution. A missing item is a ground to refuse registration under the opening words of s.7.
- Older unions. A union registered under the Trade Unions Act, 1926 and valid immediately before commencement is deemed registered under the Code, but it must file with the Registrar a statement that its executive is constituted in accordance with the Code along with its rules updated in accordance with s.7 (s.9(4) proviso).
- Changes. Amend rules only by the method the rules themselves prescribe under clause (k), then send the Registrar a copy of the alteration within fifteen days (s.26(2)). Section 11(3) separately requires the union to inform the Registrar of any change in the particulars given in its application and in its constitution or rules, in the prescribed manner.
- Employers and members. An employer who wants to know whether a union is properly constituted can ask for the registration certificate and rules. The certificate is conclusive evidence of registration under s.9(2).
Example. A union's draft rules say the executive is elected "every five years". That does not satisfy clause (i), which requires election once in every three years. The Registrar could refuse registration until the rules are corrected.
Need help drafting or updating Trade Union rules?
A union constitution that follows s.7 closely saves delay at registration and disputes later. Our legal consultation team can review your draft rules against clauses (a) to (l) and the State's procedure. Bring the current rules and any resolutions adopted.
Key takeaways
- Section 7 sets twelve mandatory matters for a union's rules, plus a properly constituted executive.
- Elections of the executive and office-bearers must be provided for once in every three years.
- Rules must provide for safe custody of funds, annual audit and member access to records.
- Honorary or temporary members cannot be those barred from office under s.21.
- Older unions must update their rules in line with s.7 when filing the s.9(4) statement.
Read next
- Sections 5 and 6: Registrar and criteria for registration
- Section 8: application for registration
- Section 9: registration and cancellation
- Section 15: general fund and separate fund
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.