XYZ Ltd. is engaged in the manufacturing of heavy capital machinery and employs approximately 740 workers due to its labour-intensive operations. Until 31st March 2026, the establishment did not have any trade union. In

Section 6 of the Industrial Relations Code, 2020, provides the following criteria for registration of a Trade Union. Minimum number of members to apply for registration: Any seven or more members of a Trade Union may, by subscribing their names to the rules of the Trade Union and by otherwise complying with the provisions of this Code with respect to registration, apply for registration of the Trade Union under this Code. Membership threshold for registration: No Trade Union of workers shall be registered unless at least ten per cent of the workers or one hundred workers, whichever is less, engaged or employed in the industrial establishment or industry with which it is connected are the members of such Trade Union on the date of making of application for registration. Validity of Application in case of withdrawal of applicants: Where an application has been made under sub section (1) for registration of a Trade Union, such application shall not be deemed to have become invalid merely by reason of the fact that, at any time after the date of the application but before the registration of the Trade Union, some of the applicants, but not exceeding half of the total number of persons who made the application, have ceased to be members of the Trade Union or have given notice in writing to the Registrar dissociating themselves from the application. Condition for continuing registration: A registered Trade Union shall at all times maintain, at least 10% of the workers or 100 workers, whichever is less, as members, subject to a minimum of seven members engaged in the establishment/ industry with which it is connected. Conclusion: As the proposed trade union has only 47 members, instead of minimum 74 [10% strength of the total 740 workers, or 100 workers, whichever is less ], hence registration of Trade Union is not possible.