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Lockout is an act initiated by an employer to shut down a place of employment or suspend work in order to gain concessions from employees. It is defined under the Industrial Dispute Act, 1947 as the temporary closing of a place of employment, or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him. A lockout must involve a temporal shutdown, be initiated due to employer demands, and impact multiple workers. Lockouts are prohibited without proper notice, within certain time periods of notice or proceedings, or when settlements/awards are in operation. While the right to protest is constitutionally protected, the right to strike is a statutory right with restrictions under the Industrial Dispute Act

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29 views3 pages

Document

Lockout is an act initiated by an employer to shut down a place of employment or suspend work in order to gain concessions from employees. It is defined under the Industrial Dispute Act, 1947 as the temporary closing of a place of employment, or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him. A lockout must involve a temporal shutdown, be initiated due to employer demands, and impact multiple workers. Lockouts are prohibited without proper notice, within certain time periods of notice or proceedings, or when settlements/awards are in operation. While the right to protest is constitutionally protected, the right to strike is a statutory right with restrictions under the Industrial Dispute Act

Uploaded by

Rakshi Padhan
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Introduction

Lockout is an act of employer. Lock-out means to "to shut or to close" Prior 1860 Lockout was known
as "turn off" Lockout is an effective and widely recognized weapon in the hands of employers. It is the
antithesis of Strike.

2) Meaning of Lockout

Lockout means the Closing of a place of Employment or the suspension of work or the refusal by
employer to continue to employ any number of persons employed by him. Lockout means withholding
of employment by an employer and the whole or partial closing oh his business establishment in order
to gain concession from employees.

3) Definition of Lockout

Section 2(1) of the Industrial Dispute Act,1947 defines Lockout - “Lock-out” means the temporary
closing of a place of employment, or the suspension of work, or the refusal by an employer to continue
to employ any number of persons employed by him.

A lockout has to have the following in order to be counted as a lockout:

There has to be a temporal shut down of the area of employment. It could also be a temporary
suspension of workers or holding back of work from the workers.

The employer has to have a demand that leads him to initiate the lockout.

The lockout touches any number of workers employed within the industry.

On the other hand, there are some actions that do not count as lockouts. For instance:

When an employer stops late-comers from working on that day.

Preventing employees whose services have been ceased from going to the place of work.

Boundaries of lockouts:

Section 12(2) of Industrial Dispute Act says- Lockouts are not allowed to take place when:

(a) without giving them notice of lock-out as hereinafter provided, within six weeks before
locking out; or

(b) within fourteen days of giving such notice; or

(c) before the expiry the date of lock-out specified in any such notice as aforesaid; or

(d) during the pendency of any conciliation proceedings before a conciliation officer and seven

days after the conclusion of such proceedings.

According to Section 22(5)-

The notice of lock-out referred to in section 22 (2) shall be given in such manner as may be prescribed.

Circumstances making strikes and lockouts illegal in an industrial establishment (S. 23) –

No workman who is employed in any industrial

establishment shall go on strike in breach of contract and no employer of any such workman shall
declare a lock-out—

(a) during the pendency of conciliation proceedings before a Board and seven days after the

conclusion of such proceedings;

(b) during the pendency of proceedings before 1

[a Labour Court, Tribunal or National Tribunal]

and two months after the conclusion of such proceedings;

[(bb) during the pendency of arbitration proceedings before an arbitrator and two months after the
conclusion of such proceedings, where a notification has been issued under sub-section (3A) of section
10A; or]

(c) during any period in which a settlement or award is in operation, in respect of any of the

matters covered by the settlement or award.

Section 24 of the act defines the illegal strikes and lockouts that a strike and lock-out is illegal if it is:

Declared without the prior notice of 6 weeks,

Declared during the pendency of conciliation proceeding,

If it is continuingly contravention the boundaries of strikes and lockouts.

According to section 22 of this Act, lockout of factory or industry must be done only after issuing prior
notice to concern employees.

In India, the right to protest is a fundamental right under Article 19 of the Constitution of India.
But right to strike is not a fundamental right but a legal right and with this right statutory restriction is
attached in the Industrial Dispute Act, 1947.

Case laws

Rothas Industries v. Its Union, the Supreme Court held that the remedy for illegal strike has to be sought
exclusively in Section 26 of the Act. The award granting compensation to employer for loss of business
though illegal strike is illegal because such compensation is not a dispute within the meaning of section
2(k) of the Act.

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