Establish a political fund
A guide for trade unions and employers’ associations seeking to establish a political fund
Who this guidance is for
This guidance is for organisations that wish to establish a political fund to enable them to spend money for political purposes. For simplicity, this guidance refers only to “trade unions”. Employers’ associations wanting to set up a political fund should contact the Certification Office:
Email: info@certoffice.org Telephone: 0330 109 3602
What this guidance covers
This guidance outlines what the law says about trade unions wishing to spend funds for political purposes, termed “political objects”. The guidance details what trade unions need to do to comply with the law by:
- balloting members on the question of whether the union should spend money on political objects
- running that ballot using rules approved by the Certification Officer (the “ballot rules”)
- drafting rules to set up a separate fund for spending on political objects (the “political fund rules”) and seeking the Certification Officer’s approval for these rules
- receiving members’ contributions to the political fund and how members can opt out of paying into the political fund
These requirements are set out in the Trade Union and Labour Relations (Consolidation) Act 1992, as amended.
Read Chapter VI of the 1992 Act (as amended) on legislation.gov.uk.
This guide should not be regarded as a complete or authoritative statement of the law.
The Certification Officer and his staff will be happy to discuss this guidance with unions or their representatives.
Northern Ireland
The 1992 Act does not apply to any trade union which has both its main office in Northern Ireland and its membership restricted to Northern Ireland. A trade union which has its head or main office in Great Britain and has members in Northern Ireland should seek guidance from the Certification Office at an early stage and may also need to contact the Northern Ireland Certification Officer, telephone: 028 9023 7773 email: info@nicertoffice.org.uk.
What the law requires
A trade union may not spend any part of its funds in the furtherance of political objects unless those objects have first been approved by a resolution passed on a ballot of its members.
‘Political objects’ means the expenditure of money by the trade union that directly or indirectly benefits a political party. The full list of political objects is set out at section 72 of the Trade Union and Labour Relations (Consolidation) Act 1992 (“the 1992 Act”).
Read section 72 of the Act on legislation.gov.uk.
Members’ contributions to the political fund
A member of a trade union is a contributor to the political fund of the union unless an opt-out notice given by the member to the union has effect. Each union’s political fund rules set out the process by which an opt-out notice can be completed.
Read section 84 of the Act on legislation.gov.uk
Section 84A requires a trade union to send information to members about opting out of the political fund as follows:
- notify all the members of the union of their right not to be a contributor to the political fund of the union.
- give the notification in accordance with rules of the union approved for the purpose by the Certification Officer.
Read section 84A of the Act on legislation.gov.uk
The above provisions, along with other provisions about members’ contributions to the political fund, are reflected in the model political fund rules prepared by the Certification Officer.
Overseas Members
The ballot rules may exclude overseas members from the ballot. It is for the trade union to decide whether or not to exclude overseas members but, if they are excluded, the ballot rules must expressly state that they are not entitled to vote. A trade union may also choose not to provide information about opting out of the political fund to overseas members.
Read section 94 of the Act on legislation.gov.uk
Actions the trade union needs to take in preparation
The following is a summary of actions a trade union needs to take in preparation for a setting up a political fund. You should complete Stage 1 well before the date when the trade union intends to adopt the ballot rules. This is to enable sufficient time to make the necessary practical arrangements for the voting.
Stage 1
The union prepares the draft ballot rules and draft political fund rules.
The Certification Officer advises organisations to follow the model ballot rules which are appropriate in most cases.
Model ballot rules - Scrutineer also acts as Independent person
There are also alternative model rules for situations where the roles of the scrutineer and the independent person are to be carried out by different people.
Model ballot rules - Scrutineer and Independent person are different
The Certification Officer must be satisfied that the ballot rules meet the requirements of sections 75 to 78 of the 1992 Act. He will need more time to consider the rules if you choose to diverge significantly from the model rules.
Read sections 75 to 78 of the Act on legislation.gov.uk
Stage 2
Email the Certification Office a copy of:
- the proposed ballot rules; and
- the proposed political fund rules.
Stage 3
The Certification Officer gives preliminary approval to both sets of rules if he is satisfied that the proposed rules comply with all the requirements of the Act.
Stage 4
The union passes a resolution to adopt the ballot rules which have been given preliminary approval by the Certification Officer.
It is convenient if the political fund rules are conditionally adopted by the union at the same time. This is normally achieved by passing a “combined resolution” which has three purposes:
- to resolve that a ballot should be taken on the question whether the furtherance of the political objects specified in the Act shall become an object of the union;
- to adopt the proposed ballot rules; and
- to resolve that, if a majority of the members voting in that ballot vote in favour, the proposed political fund rules be adopted.
The Certification Office has prepared a model resolution that trade unions may wish to use.
Once adopted, the rules do not come into force until they have been approved by the Certification Officer.
The union may pass the combined resolution via a majority of delegates voting in favour at a meeting called for the purpose. The Certification Officer has accepted that this can include a majority vote of the union’s executive committee or other governing body at a meeting of that body convened for this purpose.
Other ways of ways of passing the resolution are set in the 1992 Act, as amended.
Read section 92 of the Act on legislation.gov.uk
However the rules are adopted, Certification Officer has to certify that the rules have been properly approved.
Stage 5
For formal approval, the union must send a copy of the ballot rules, each signed by three members of the executive committee or other governing body of the union. This should be sent to the Certification Officer by email by the General Secretary, along with the application form PF4.
If the proposed rules have already been approved informally, and assuming no changes have been made to them since, it should be possible for the Certification Officer to give formal approval quickly.
If the ballot rules are approved by the Certification Officer, a certificate of approval affixed to one copy of the rules will be returned to the union.
Stage 6
The Union’s members are asked whether they approve the furtherance of the political objects as an object of the union. This is done through a ballot of the membership which is held in accordance with the approved ballot rules.
The Act is silent on what can be included with the ballot paper. To assist members voting, this office has produced an explanatory statement. This can be printed on the voting paper or attached to it.
Stage 7
The union sends by email the Scrutineer’s report to the Certification Officer if the members have voted in favour of the political resolution.
A copy of the political fund rules given preliminary approval should be submitted at the same time with the completed form PF4. The copy of the political fund rules should carry the original signatures of the three union officials who authenticate the rules.
Stage 8
The Certification Officer gives formal approval. A copy of the approved rules is returned to the union with the Certification Officer’s certificate of approval affixed to it.
Stage 9
The union informs its members that the political resolution has been passed.
Stage 10
As soon as possible, and no later than eight weeks after the union votes to adopt political objects, the union shall publish the notice to every member, which informs of their right to opt out contributing to the political fund. Whilst the union’s political resolution is force, the aforesaid notice must be published every ten years. This is covered in more detail in the model political fund rules.
Updates to this page
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Guidance on establishing a political fund updated
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First published.