STRIKE,LOCK

OUT AND LAY

OFF

GOKUL THEJUS,BBA LLB,ROLL NO :- 15

 INTRODUCTION
Strike ,lockout and Lay off are powerful tools in the realm of labour
relations, each serving as a means for employees and employers to assert
their interests and leverage negotiations. While both actions disrupt
workplace operations, they differ fundamentally in their initiation, purpose
and legal implications.

The difference between them is not merely procedural; they represent a

fundamental distinction in perspective. Strikes embody the collective will
of workers, seeking to balance the scales of power in the workplace.
Lockouts, conversely, reflect the employer’s exercise of authority, often
with the aim of achieving a favourable outcome in negotiations.
01
STRIKE
Definition of Strike

Section 2(q) of the Industrial Disputes Act, 1947 defines a strike as “a group of
workers in an industry stopping work together, or a joint refusal by any number of
workers, who are or have been employed, to continue working or accept
employment.”

A strike is a powerful weapon used by trade unions or other associations or workers

to put across their demands or grievances by employers or management of industrieS
Legal Status of Strike in Labour Law

Section 22 of the ID Act prohibits strikes in Public Utility Services and Section 23
generally restricts strikes in any industrial establishment, making strikes mostly illegal.
However, Section 24(3) specifies that a strike in response to an illegal lockout won’t
be illegal. There are also situations when a strike can be considered legal. Section
20(1) outlines that conciliation proceedings begin when a notice is received by the
conciliation officer or when the dispute is referred to the Board.

During the period between 14 days after issuing a strike notice and before six weeks
pass from that date, a legal strike can occur in Public Utility Services, provided the
dispute hasn’t been referred yet.
Another scenario in which a strike becomes legal is as follows: If a new strike notice is
issued on the same matter as a previous dispute for which the conciliation officer
reported a failure, the union can proceed with a legal strike after the mandatory 14-day
cooling-off period unless the government refers it to the Labour Court or Industrial
Tribunal. The failure of previous conciliation proceedings on the same grounds applies
to the fresh strike notice.

In non-public Utility Services, there’s no specific time window. Unless the

establishment’s Standing Orders prohibit or regulate strikes or ongoing negotiations or
conciliation proceedings, workers can engage in a strike without prior notice.

One might question the general prohibition on strikes in any industrial establishment
under Section 23. The answer lies in the fact that this prohibition applies only when it
When a strike become illegal

 Violates the Contract of Employment.

 Occurs in Public Utility Services.

 Doesn’t follow the notice requirement of Section 22(1).

 Begins during an Award or settlement period.

 Begins during or within 7 days of completing Conciliation Proceedings.

 Begins during or within Two months of completing Adjudication Proceedings.

Case laws related to Strike

In State of Bihar vs. Deodas Jha (AIR 1958, Pat. 51), it was decided that the duration
of a strike doesn’t affect its definition; even a short stoppage or refusal to work can be
considered a strike.

In Kameswar Prasad vs. State of Bihar (AIR 1962, SC 1166), the Supreme Court
clarified that the right to strike is not a fundamental right. Instead, it’s a means for
workers to express their grievances to employers and seek resolution.
Another scenario in which a strike becomes legal is as follows: If a new strike notice is
issued on the same matter as a previous dispute for which the conciliation officer
reported a failure, the union can proceed with a legal strike after the mandatory 14-day
cooling-off period unless the government refers it to the Labour Court or Industrial
Tribunal. The failure of previous conciliation proceedings on the same grounds applies
to the fresh strike notice.

In non-public Utility Services, there’s no specific time window. Unless the

establishment’s Standing Orders prohibit or regulate strikes or ongoing negotiations or
conciliation proceedings, workers can engage in a strike without prior notice.

One might question the general prohibition on strikes in any industrial establishment
under Section 23. The answer lies in the fact that this prohibition applies only when it
02
LOCKOUT
Definition of Lockout

Section 2(I) of The Industrial Disputes Act, 1947 defines a lockout as the “temporary

closure of a workplace, the suspension of work, or an employer’s refusal to continue

employing any number of workers during their period of employment.” A lockout is

when an employer temporarily closes a workplace or stops work. It’s different from

permanently closing a business. Before 1860, a lockout was referred to as a “turn-

off.” A lockout serves as the employer’s counterpart to a strike.

Essentials of Lockout

To constitute a lockout in labour law, the following conditions must be met:

 Temporary closure of the workplace by the employer or the suspension of work by

the employer or the employer’s refusal to continue employing any number of

workers.

 These actions should be motivated by coercion.

 It should relate to an industry as defined in the Act.

 There should be a dispute in the industry.

Legal Status of Lockout in Labour Law

Section 2(1) defines the term “lockout.” However, the current definition is incomplete.
The term was originally and correctly defined in the Trade Dispute Act, 1929. The present
Act has adopted the current definition from the Trade Dispute Act but has omitted the words
“when such closure, suspension, or refusal occurs as a result of a dispute and is intended
to compel those persons or to assist another employer in compelling persons employed by
him to accept terms or conditions of, or affecting employment.”

A lockout declared in violation of Section 10(3), Section 10A(4A) (i.e., declaring a lockout
when an industrial dispute has been referred) is considered illegal. Additionally, a lockout
declared without complying with Section 22 and 23 (i.e., issuing a notice before the lockout)
is illegal (Section 24(1)). However, a lockout declared in response to an illegal strike is
considered legal (Section 24(3)). A legal lockout can become a powerful tool for an
employer in critical situations.
In the case of General Labour Union (Red Flag) v/s B. V. Chavan And Ors on 16
November 1984, the Supreme Court of India ruled that imposing and continuing a
lockout that is deemed illegal under the Act is an unfair labour practice.

In Sri Ramchandra Spinning Mills v/s State of Madras, the Madras High Court included
the deleted portion in the definition to interpret the term “lockout.” According to the
Court, even if a flood, fire, or natural disaster causes the closure of the workplace or
the suspension of work or the employer refuses to continue employing previous
workers, it would still be considered a lockout, subjecting the employer to penalties
under the Act. This demonstrates that the current definition does not fully convey the
concept of a lockout.
03
LAYOFF
Definition of Layoff

A “layoff” means when an employer doesn’t offer a job to a worker whose name is on

the worker list for their industrial business. This happens when the employer can’t

provide work due to reasons like not having enough electricity, coal, materials, having

too many goods in stock, machines breaking down, natural disasters or other good

reasons. This definition is in Section 2(k k) of the Industrial Disputes Act, 1947.
Requirments for a Layoff

To have a layoff:

1. The employer can’t provide work to the workers.

2. This inability to provide work should be due to a lack of electricity, coal, materials,
excess stock, machine breakdown, a natural disaster or other valid reasons.

3. The worker’s name should be on the employer’s list of workers for their industrial
business.

4. The worker shouldn’t have been fired.

If a worker’s name is on the employer’s list and they show up for work but aren’t given
work within two hours, they are considered laid off for that day. Similarly, if a worker is
asked to work during the second part of their shift and gets work, they are seen as laid off
for the first part of the day. If they show up for work during the second part of the day and
still don’t get work, they are considered laid off for the whole day.
compensation for Layoff

Laying-off workmen results in depriving them of the opportunity to work and earn
wages. Therefore, it becomes the duty of the employer to provide compensation to the
workmen if their case falls within the scope of the Section 25C of the Act. However, no
compensation can be aw arded in advance ofactual lay-off on grounds of social justice.
This particular section states that any workman:

• whose name is borne on the muster-rolls of an industrial establishment and,

• who has completed atleast one (1) year of continuous service under the employer,
shall be paid compensation for the period during which he was laid-off, which shall be
equal to fifty

(50) percent of the total of the basic wages and dearness allowance that should be
payable to him had such workman not been so laid-off.
Maintaining muster-rolls is a universal practice by industrial establishments. Its
purpose is to record the attendance of workmen employed. However, the purpose is
not limited to the same. It also acquires importance with respect to lay-off of workmen.
If the name of the workman is not mentioned on the

muster-rolls of an establishment, he cannot get laid-off under the Act. According to

Section 25D, it is the duty of the employer to maintain muster-rolls of workmen and
failure to comply with this provision can attract penalty under Section 31(2) of the Act.

If during the one (1) year period of continuous service, the workman is laid-off for more
than forty- five (45) days, no further compensation will be paid if there is an agreement
in that respect between the workman and the employer. Upon the expiry of this period,
the employer can retrench the workman and the compensation then paid would
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