Union Cabinet approves amendment to Tade Unions Act of 1926

The Union Cabinet has recently approved amendment to the Trade Unions Act of 1926 to make provisions regarding Recognition of Trade Unions. The amendment provides for insertion of section 10A in the principal Act to power centre and state governments to recognize trade unions and federation of Trade Unions at Central as well as State level. The proposed bill will also provides for insertion of clause (ba) in Section 29(2) of the Act, which empowers the centre and states to make regulations for manner of recognition of trade unions and deciding disputes in this regard. After the amendment Act is passed, the manner of recognition will be prescribed in the regulations. The present act provides for only registration of trade unions. Currently, there is no provision for recognition of unions in the Act.