Regulation Unions & Associations
A trade union is an organization primarily comprised of workers of a particular type. Its primary purpose is to regulate the relationship between employees of that type and their employers or employers’ associations. A trade union can be made up entirely or predominantly of constituent and affiliated organizations that meet the specified conditions, or it can consist of representatives of such constituents or affiliated organizations.
A trade union, while not a legal entity in itself, has the capacity to hold property through its trustees. It can also enter into contracts and can be sued or bring legal actions.
In terms of legal liability, a trade union can be prosecuted for any offence in its own name, and judgments or awards against it are enforceable under general enforcement of judgments legislation. Its assets may be sequestrated in certain circumstances.
However, a trade union cannot be registered as a company, an industrial or provident society, or a friendly society.
The rules of trade unions are not considered unlawful or unenforceable solely because they might impose restraints on trade.
Employers’ associations hold a similar status. They are composed primarily of employers or individual proprietors of one or more types and aim to regulate relations between employers and employees or trade unions. Like trade unions, they can also be made up of affiliated organizations or constituent organizations that fall within the defined categories.
Employers’ associations can be either a legal body or an unincorporated association. If unincorporated, they possess similar capacities to trade unions. Their rules or trusts are not considered void solely because they impose restraints on trade.
The Certification Officer maintains a list of registered trade unions and employers’ associations. They have the authority to register both existing and future organizations functioning as either trade unions or employer representatives.
The Certification Officer registers rules, names, and other specified details provided they meet the above definitions. Organizations may be deregistered if they cease to exist or no longer meet the criteria.
The register is open to public inspection during reasonable hours and free of charge.
An entry in the register and a certificate issued by the Certification Officer serve as evidence of the organization’s status as a trade union or employers’ association, as applicable.
Similar provisions exist for the recognition of trade unions registered under equivalent English legislation.
A registered trade union can apply to the Certification Officer for a certificate of independence. The Certification Officer assesses the independence of the trade union and issues a certificate accordingly. This certificate can be withdrawn. If a trade union is dissatisfied with the refusal to issue a certificate of independence, it can appeal to the High Court.
The property of trade unions is held by their trustees. The same applies to unincorporated employers’ associations. The appointment of new trustees through written instruments transfers assets to the incoming trustee, and an instrument can discharge outgoing trustees.
Using the assets of a trade union to pay penalties imposed for offences, contempt of court attempts, or indemnifying individuals against penalties is unlawful. If such a payment is made, the person responsible must account to the trade union, which can recover the amount from the member. Any member can apply to the High Court if the trade union unreasonably refuses to do so.
Members who find that trustees have unlawfully used the union’s assets or failed to comply with lawful directives under the union’s rules can apply to the High Court. If the court finds the claim well-founded, it can issue appropriate orders, including actions to protect or recover assets, the appointment of a receiver, the removal of trustees, or other relief as necessary.
Trade unions and employer associations located within Northern Ireland must maintain accounting records. However, this requirement does not apply to organizations consisting primarily of representatives of constituent or affiliated organizations. Proper accounting records must accurately reflect transactions and assets and liabilities. Effective control systems must be maintained for accounting records, cash holdings, receipts, and payments. Records must provide a true and fair view of the underlying transactions.
Trade unions and employers’ associations must submit their accounts to the Certification Officer and appoint an auditor for auditing. They must also provide copies of their rules and returns to interested parties upon payment of a reasonable fee. The Certification Officer must make copies of all annual returns available for public inspection, either free of charge or for a reasonable fee.
Trade unions are required to take reasonable steps to ensure that all members receive a statement, no later than eight weeks after the annual return, containing information on income and expenditure, payments to political funds, and details of key officers’ salaries. These statements can be delivered individually or through other methods such as publication.
The statements must align with the return, include the auditor’s full report on the accounts, and cover other relevant matters that inform members about the union’s activities. The statement must also include designated information regarding the right to report alleged irregularities to the Certification Officer, who is an independent officer of the Department of Economic Development.
Similar provisions exist for trade unions and employers’ associations incorporated outside Northern Ireland but conducting business within its jurisdiction. They must provide certified copies of their annual returns and designate an address for service of process.
The Certification Officer can require the production of documents from a trade union, branch, or employers’ association. With permission, they can authorise an officer to demand relevant documents, including accounting records and financial-related documents. The Certification Officer may take copies of these documents, seek explanations, and confirm their authenticity.
Inspectors can be appointed by the Certification Officer to investigate the financial affairs of a trade union or employers’ association if circumstances suggest fraudulent or unlawful conduct, fraud, misfeasance, misconduct in connection with management, non-compliance with statutory duties, or rule violations.
Inspectors have investigation and inspection powers, including requiring document production and the attendance of individuals. They can make interim and final reports to the Certification Officer and must report relevant matters during the investigation. The Certification Officer can direct inspectors on further steps or conditions regarding the investigation.
The Certification Officer’s final report is available free of charge to members, auditors, and members of the trade union or employers’ association. Expenses incurred during the investigation may be payable by individuals convicted as a result of the investigation.
An offence is committed if a trade union or employers’ association willfully neglects or refuses to fulfill its duties. This offence applies to officers of the organization, and if none exist, it applies to every executive member of the union. Penalties for this offence upon summary conviction may include a fine not exceeding level 5 on the standard scale, imprisonment not exceeding six months, or both.
Proceedings related to offences can be initiated within three years.
A trade union must ensure that the following persons do not hold a position in the union, namely, a member of the executive, president, or general secretary if, within the period of five years immediately preceding, they have been convicted of an offence above, or within the period of 10 years immediately preceding, they have been convicted of certain other offences under the legislation.
A member of a trade union who claims that the union has failed to comply with its obligations above may apply to the Certification Officer or to the High Court for a declaration. The Certification Officer, on application, is to make inquiries as he thinks fit. He must give the applicant and the trade union the opportunity to be heard. He may make or refuse the declaration requested.
Where the High Court makes a declaration, it shall also, if it considers it appropriate, make an order imposing on the trade union a requirement to take within such a period as is specified such steps as are directed to remedy the declared failure.
Trade unions are under a duty to make their accounting records available for inspection six years following their creation. Persons entitled to inspect must be facilitated in an inspection within 28 days. They must be allowed to be accompanied by an accountant for the purpose of inspection and be allowed to take copies of records. Obligations of confidentiality may be imposed.
A person who claims a trade union has failed to comply with its obligations may apply to the High Court or Certification Officer. The Court may make an order requiring and allowing inspection.
The Certification Officer shall make such appropriate inquiries, give the applicant and the trade opportunity to be well heard and make an order allowing for inspection and inquiry. The rights may be exercised by a member of the trade union, and the records relate to when that person was a member.