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Jayanta Bandyopadhyay   21 March 2026

New labour code and consequences

Turf Club having a dwindling income employ only 26 unionized,  27 officials and 300 odd seasonal race day employees.

It is difficult to absorb race day employees as they are hardly deployed during race days say 150 days a year .

There is no job profile to categorise unionized and officials as who works supervisory job and should stay outside union ambit.

Other than daily wagers, others receive higher than Rs.25000 pm.

Union demands 30% hike.

Can Union be de-recognised for poor strength and absence of job profile.

 

Kindly guide.



 2 Replies

Dr. J C Vashista (Advocate )     22 March 2026

Facts as well as query is vague and confusing.

It is better to consult a local prudent lawyer with relevant records for proper appreciation of facts/ documents and professional advise.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     22 March 2026

No, the union cannot be de-recognized solely for poor strength or absence of a job profile under current Indian labour laws. Recognition of trade unions is largely voluntary by employers, with no central statutory mandate for compulsory recognition or straightforward de-recognition based on low membership alone.

 Union Recognition Basics India's Trade Unions Act, 1926, allows registration but does not compel employer recognition for collective bargaining.

 The Industrial Relations Code, 2020 (expected implementation by April 2026), introduces thresholds like 30% membership for sole unions or 51% for negotiating unions in larger establishments, but applies only to those with 300+ workers and focuses on granting recognition, not de-recognition.

 De-Recognition Grounds De-recognition occurs only after recognition, typically via state laws like Maharashtra's Recognition of Trade Unions Act, 1971 (MRTU & PULP), relevant for the Mumbai-based Royal Western India Turf Club.

 Grounds include failure to maintain majority support, unfair practices, or not acting in employees' interests; low absolute numbers (26 unionized out of ~353 core staff) alone do not suffice without inquiry and proof of lost representativeness.

 Supervisory vs Union Employees Employees in supervisory roles or earning above certain thresholds (e.g., ₹18,000 pm under new codes, higher than legacy Rs. 10,000) can be excluded from "worker" definitions, limiting union scope.

Absence of job profiles does not automatically de-recognize a union but may allow reclassification via Industrial Tribunal, based on actual duties rather than salary or title.

 Wage Hike Demands Unions can demand 30% hikes, but employers facing financial strain (dwindling income) can negotiate or seek dispute resolution; periodic hikes are not always mandatory unless contractually fixed.

 Seasonal workers (300 odd, ~150 days/year) are hard to absorb but remain eligible for protections if classified as employees.

Approach the Industrial Court under MRTU & PULP for verification of union membership and representativeness, or await Industrial Relations Code rules for clearer thresholds.


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