Yes. Under the Industrial Relations Code 2020, a contractor's crew are workers like any other, and a union's members are the people "actually engaged or employed" in the establishment or industry it is connected with. They can join the site's union, an industry-wide union, or form their own. What is less settled is whether they count toward the 51% that makes a union the site's sole negotiating union.
Who can join, and who can form one
Any worker, including a contractor's. Section 2(zr) of the IR Code defines a worker as anyone employed in an industry to do manual, skilled, technical, clerical or supervisory work "for hire or reward", and section 2(m) counts a contractor as an employer. Section 7(e) requires a union's rules to admit as ordinary members "persons actually engaged or employed in the industrial establishment, undertaking or industry" it is connected with, "irrespective of their craft or category".
| Step | Requirement | IR Code |
|---|---|---|
| Apply to register | Seven or more members subscribe to the union's rules | s.6(1) |
| Minimum membership to register | 10% of the workers or 100 workers, whichever is less, engaged or employed in the establishment or industry | s.6(2) |
| Membership to stay registered | The same 10% or 100, with at least seven, at all times | s.6(4) |
| Office-bearers from outside | No more than one-third of office-bearers, or five, whichever is less, may be people not engaged or employed there | s.21(2) |
| Where it registers | With the Registrar of Trade Unions the State Government appoints | s.5 |
Because the test is "engaged or employed in the industrial establishment ... or industry", a contract crew is not confined to a union of its own contractor's employees. An industry union can take in contract and direct workers on the same footing.
Do they count for the negotiating union?
That is the open question. Section 14 says an industrial establishment with registered unions must have a negotiating union or a negotiating council:
- One registered union. The employer recognises it as sole negotiating union, subject to prescribed criteria (s.14(2)); the Central Rules set a membership of at least 30% of the workers employed in the establishment (r.9(2)).
- Several unions. The union supported by 51% or more "of workers on the muster roll of that industrial establishment" is recognised (s.14(3)).
- No union at 51%. A negotiating council is formed from the unions with at least 20% support (s.14(4)).
- Duration. Recognition lasts three years, extendable by agreement to no more than five in all (s.14(6)).
Support is verified by secret ballot, and the Central Rules say that all workers whose names are on "the muster roll of the industrial establishment" on the reckoning date may vote (r.9(4)). A contractor keeps its own attendance and wage registers for its crew. Whether that crew is on the muster roll of the site's establishment for this purpose, or forms part of the contractor's own establishment, is not settled in so many words by the Code or the Rules.
What neither employer may do
Both the site and the contractor are bound by the unfair labour practices in Part I of the Second Schedule to the IR Code, because both are employers. Among them:
- Interfering with organising, including threatening dismissal if workers join a union, or a lock-out or closure if one is formed (item 1).
- Dominating or funding a union, or favouring one of several unions that is not recognised (item 2), and setting up an employer-sponsored union (item 3).
- Discriminating for union activity, including discharging a worker for urging others to join, or discharging office-bearers or active members because of union work (item 4).
An unfair labour practice carries a fine of ₹10,000 to ₹2 lakh, and more on a repeat (s.86(5)–(6)). Union dues can come out of wages only with the worker's written authorisation (Code on Wages 2019, s.18(2)(k)). For a contract crew, that deduction is made by the contractor, which runs the payroll.
What a site should check
- No contractor clause that restricts union membership. A clause, or a practice, of replacing workers who join a union points straight at item 4 of the Second Schedule.
- Supervisors briefed on the list. Contractors' supervisors and the site's own should know what counts as interference before an organising drive, not during one.
- Union dues on the payslip only with authorisation. The contractor should hold each worker's written authorisation for any union deduction.
- Counsel involved early in any verification. If a negotiating-union verification is due, the question of who is on the muster roll is better settled before the voters list is drawn up.
How Velura Services helps
We do not restrict, discourage or penalise union membership among the workers we deploy, and our supervisors are briefed on what the IR Code treats as interference. Union dues are deducted from our payroll only against each worker's written authorisation, and we keep our crew's attendance registers in a form the site and its counsel can work from if a verification arises.
Sources
- The Industrial Relations Code, 2020 (Act 35 of 2020), Gazette text hosted by the Ministry of Labour and Employment. Sections cited: s.2(m) (employer, including a contractor), s.2(zr) (worker), s.5 (Registrar of Trade Unions), s.6 (registration: seven members; 10% or 100), s.7(e) (ordinary members engaged or employed in the establishment or industry), s.14 (negotiating union or council: 51%, 20%, three years), s.21(2) (outside office-bearers), s.86(5)–(6) (penalties), Second Schedule Part I items 1 to 4. Opened and read.
- Industrial Relations (Central) Rules, 2026, G.S.R. 342(E), Gazette of India, 8 May 2026. Rule 9 (matters for negotiation; single union at 30%; verification officer; secret ballot; voters from the muster roll of the industrial establishment). Opened and read.
- The Code on Wages, 2019 (Act 29 of 2019), Gazette text hosted by the Ministry of Labour and Employment. Section 18(2)(k) (union fees deducted only with written authorisation). Opened and read.