Procedure for Recognition of Negotiating Union or Negotiating Council

Sukirti Agarwal

Sukirti Agarwal

Published on: Jun 9, 2026

Akshit Rai

Updated on: Jun 9, 2026

★★★★★(12 Ratings)

95

Introduction

The Industrial Relations Code, 2020 has established an orderly system for worker representation, in the form of a recognized negotiating union or negotiating council. This makes it obligatory for employers to deal with real representatives’ body of workers; thereby cutting out fragmented bargaining, improving the system of resolving dispute and increasing the likelihood of collective agreements which represent the views of a clear majority of employees.

1. Recognition of Negotiating Union or Negotiating Council (Section 14):

   There shall be a negotiating union or a negotiating council, in an industrial establishment having registered Trade Union for negotiating with the employer of the industrial establishment on such matters as may be prescribed.

   • Where there is only a sole registering Trade Union functioning in an industrial establishment, the employer has to recognize that single registered Trade Union as the negotiating union.
   • Where there are two or more Trade Unions in the establishment only that Union shall be the sole negotiating union, which have fifty one percent (51%) or above of the total workers borne on the muster roll.
   • Where more than one registered Trade Union exists in an industrial establishment, none of which has the support of a majority of fifty-one percent (51%) or more workers on the muster roll, the employer shall constitute a joint Negotiating Council. Such council shall only comprise of only such representatives of Trade Unions as are registered having verified support from their members which is twenty percent (20%) or more of workers on the muster roll. For constitution of such council, each such trade union shall be entitled to one representative for every twenty percent (20%) worker support and one for the remaining percentage, if any.
   • Where any negotiation is held between an employer and a negotiating council constituted, any resulting agreement is considered legally reached and binding only if it receives the approval of a majority of the trade union representatives serving on that council.
   • The recognition of a trade union or the establishment of a negotiating council remains valid for an initial period of three years (3) from its effective date. This duration can be extended if the employer and the trade union mutually agree to it. However, the total extended period of validity cannot exceed a maximum cumulative timeframe of five years (5).
   • All required facilities, according to the regulations, must be made available to the negotiating union or negotiation committee by the industrial enterprise.

Conclusion

The Industrial Relations Code, 2020, under Section 14 is meant to make worker representation formal and institutionalized according to laws and rules. Through the implementation of strict mathematical parameters for both majority and proportional representation, the chaotic issue of competing unions vying for recognition is removed from the system. This structured approach in turn assures a clearly-defined, legally sanctioned negotiating partner for employers, which in turn lends legitimacy and sustainability to collective bargaining agreements.

Important Notes

• The verification of worker support on the muster roll must be conducted strictly in the manner prescribed by the appropriate government rules.
• The designated negotiating union or council holds the exclusive statutory right to negotiate with the employer on all broad matters concerning the workers of the establishment.
• Once a council or union is officially recognized for its three-to-five year term, its composition cannot be casually disrupted by minor daily fluctuations in union membership.

Frequently Asked Questions