Legal Difference between Welfare Society Act-1860 and Trade Union Act-1926

 

Legal Difference of Welfare Society Act-1860 and Trade Union Act-1926

For the Workers of Organised and Unorganised Sector.

The Welfare Societies Act, 1860, is an act that governs the registration of societies that aim to promote charitable, cultural, or social welfare of its members, it is not considered a trade union under the Trade Union Act, 1926.

The Trade Union Act, 1926, on the other hand, is an act that governs the formation, registration, and regulation of trade unions in India. The primary purpose of the Act is to provide a legal framework for workers to form and register trade unions and to protect their rights and interests. Under the Act, a trade union is a combination of workers that aim to regulate the relationship between workers and employers, improve working conditions, and protect the rights of workers. The Act provides for the registration of trade unions and sets out the rules and regulations that they must follow.The Act also provides for the conduct of trade union elections to elect the office bearers of the union.

While the Welfare Society of  organised sector may work towards the welfare of their employees, it does not have the legal recognition of a trade union, and therefore, it cannot participate in trade union elections. The society's objectives and structure are different from that of a trade union. The primary objective of the society is to provide social and welfare benefits to its members, while the primary objective of a trade union is to protect and promote the rights and interests of workers in the workplace.

One of the critical differences between the two acts is that while the Welfare Societies Act, 1860, aims to promote the welfare of society in general, the Trade Union Act, 1926, is specific to industrial organised  workers like Railway, Coal Mines, BSNL, Post, Bank, Ordinance Factory etc. and unorganised workers.

Additionally, trade unions have legal recognition and are authorised to engage in collective bargaining with employers to improve working conditions, wages, pay revision  and other benefits for workers. The Welfare Society registered under this Act 1860 does not have this legal recognition or bargaining power.

In conclusion, the Welfare Society registered under this Act is not eligible to participate in trade union elections as it is not recognised as a trade union under the Trade Union Act, 1926. The society's objectives and structure are different from that of a trade union, and it primarily focuses on providing social and welfare benefits to its members.

Let’s understand this differences through  table

Sr.No.	Welfare Society Act-1860	Trade Union Act-1926
1.	The Welfare Societies Act, 1860, is an act that governs the registration of societies that aim to promote charitable, cultural, or social welfare of its members.	The Trade Union Act, 1926, on the other hand, is an act that governs the formation, registration, and regulation of trade unions in India. The primary purpose of the Act is to provide a legal framework for workers to form and register trade unions and to protect their rights and interests
2.	The primary objective of the society is to provide social and welfare benefits to its members.	While the primary objective of a trade union is to protect and promote the rights and interests of workers in the workplace.
3.	Welfare Societies Act, 1860, aims to promote the welfare of society in general.	The Trade Union Act, 1926, is specific to all industrial organised workers like Railway, Coal Mines, BSNL, Post, Bank, Ordinance Factory etc. and for unorganised workers.
4.	The Welfare Society (in Railways) is not eligible to participate in trade union elections as it is not recognised as a trade union under the Trade Union Act, 1926.	Trade Union has legal rights to participate in Secret Ballot Election for the Recognisation of Trade Unions/Federations.
5.	The Welfare Society does not have any legal rights to issue notice for Strike and Lockout.	The Trade Unions have  legal rights to issue notice for Strike, Lockout  under section 22 of Industrial Disput Act-1947.
6.	The Welfare Society does not have any legal rights to discuss with management regarding Bonus, Pay Revision etc.	For implementation of  Bonus, Pay Revision for management  are mandatory to discuss with Trade Unions.
7.	The Welfare Society of any organised sector  does not have any legal recognition or bargaining power.	Trade unions have legal recognition and are authorised to engage in collective bargaining with employers to improve working conditions, wages, and other benefits for workers. It has great  impact on social & economical life of workers.
8.	The Welfare Society members have no legal  protection.	Trade Union members have legal protection under Trade Union Act-1926, Industrial Dispute Act-1947, Factory Act-1948.
9.	The Welfare Society having a begging power to solve any grievances of its members through Informal Meetings with management.	But Trade Unions having a legal rights to solve any grievances of its members through PNM (Permanent Negotiating Machinery) with Management at Divisional level, Head Quarter Level and Apex Level. If any matter is not solved at this stage. Then Trade union have a their legal rights to solve  through Joint Consultative Machinery (JCM).
10.	The Welfare Society does not have a legal right to put any unsolved dispute to Regional Labour Commissioner or bring any  dispute to Central Government Industrial Tribunal (CGIT) cum labour Court,  as it is not recognised as a trade union under the Trade Union Act, 1926.	Trade Union have  legal rights to put any dispute with management under Industrial Dispute Act-1947 to Regional Labour Commissioner and to  Central Government Industrial Tribunal (CGIT) cum labour Court.
11.	The membership of Welfare Society is uncountable.	Trade Union membership is countable. The Members of union reflect and determine the ideology of concerned union.
12.	The Welfare Society does not have legal rights to participate in International labour Organisation or Indian labour Organisations.	Trade Union  can represent in International labour Organisation  and Indian Labour organisation.