The definition of the term `trade union' cover not only and is one of the earlier labour laws which has been registered so far without major amendments.

Objective: To provide of the registration of trade union and in certain respects, to define the law relating to registered trade union.

Powers: All powers under the Act are vested in the Trade Union Registrars appointed by the various State Governments.

The definition of the term `trade union' covers not only unions of workers, but also of employers.

Registration: Any seven or more members of a trade union can apply for registration to the Registrar of Trade Unions in the prescribed form containing the names, occupations and addresses of the members making the application, name and address of the union and name, age, occupation and address of each of the office-bearers. The rules of the trade union are also to be attached to the application. They must provide for :-

(a) The rate of membership subscription-with a minimum of 25 paise per month.

(b) procedure regarding amendments.

(c) mode of appointment of office-bearers with the condition that 50% or more of the office-bearers shall be persons employed in the concerned industry. Office- bearers must be over 18 years of age and should not have been convicted by court for offence involving moral trupitude, and

(d) provision of proper management of finance and audit of accounts.

A trade union is deemed to be registered only on the basis of registration certificate issued by the Registrar of Trade Unions.

Cancellation: The registration can be withdrawn by the union applying for it or can be cancelled by the Registrar on his satisfaction of reasons such as the registration having been obtained by the union by fraud or unfair means

Appeal : A union whose registration has been denied or cancelled by the Registrar is allowed to appeal over the said order of the Registrar.

Utillsation of Funds: The funds of a trade union can be utilised only for (a) payment of salaries;
(b) administrative expenses;  (c) legal proceedings and conduct of disputes on behalf of its members; (d) compensation to members for loss arising out of trade disputes; (e) allowances to members such as death benefit, sickness benefit, unemployment relief. pension or accident benefit; (f) educational, social and religious benefits; (g) running of a journal; (h) and payment in furtherance of the union's objects, subject to a maximum of 25% of the gross income.

Political Fund: A trade union may create a political fund for political purposes, but contributions to such a fund must be entirely voluntary and no member can be compelled to subscribe to it.

Immunity: Total immunity against prosecution for criminal conspiracy and civil suits is given to office-bearers and trade unions for actions that are deemed necessary for furtherance of industrial disputes.

Amalgamation: Any two or more registered trade unions can be amalgamated on the basis of ballot in the general meetings of the respective 'unions with 600% of the votes recorded being in favour of the merger.

Dissolution: Notice signed by seven members and by the Secretary has to be filed within fourteen days of the dissolution, to the Registrar under the Act.

Returns: Trade unions are required to send annually, a return in the prescribed form together with particulars of audited accounts for the year ending 31st December.

Penalties: The Act provides for penalties and procedure relating to failure to submit returns and supplying false information.

Various forms are included in the rules framed under this Act by the various state Governments and they may be referred to by the trade unions before filing application for registration and annual returns.