R4 adjusts the charging current. It should be 1/100 of C where C is the capacity in (mAh) of the battery. This if a Nicad is rated for 1000 mAh, then the continuous charging current should be less than 10 mA.
The transistor is PNP and thus turns on when the base is made more negative than the emitter by VBE.
Current in the base is limited by R3 and there must be enough current to cause saturation which depends on Hfe (current gain of the transistor) and the battery voltage.