In this article we should understand the terms Lock-out, Strike, Lay-off, Retrenchment, and Closure

a) Define ‘Lock-out’ under the I. D. act, 1947

According to Section 2(l) of the Industrial Disputes Act, 1947, 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;

b) How is the term ‘Strike’ defined in the I. D. Act, 1947?

According to Section 2(q) of the Industrial Disputes Act, 1947, strike means a cessation of work by a body of persons employed in any industry acting in combination or a concerned refusal, or a refusal under a common understanding, of any number of persons who are or have been so employed to continue to work or to accept employment;

c) What is meant by ‘Lay-off’ under the I.D. Act, 1947?

According to Section 2(kkk) of the Industrial Disputes Act, 1947, lay-off (with its grammatical variations and cognate expressions) means the failure, refusal or inability of an employer on account of shortage of coal, power or raw materials or the accumulation of stocks or the break-down of machinery 44[or natural calamity or for any other connected reason] to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched.

d) Define ‘Closure’ under the I.D. Act, 1947

According to Section 2(cc) of the Industrial Disputes Act, 1947, closure means the permanent closing down of a place of employment or part thereof;

e) What is ‘Retrenchment’ under the I. D. Act, 1947?

According to Section 2(oo) of the Industrial Disputes Act, 1947, retrenchment means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include–

(a) voluntary retirement of the workman; or
(b) retirement of the workman on reaching the age of superannuation if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf; or
(bb) termination of the service of the workman as a result of the non-renewal of the contract contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein; or
(c) termination of the service of a workman on the ground of continued ill-health.

f) Who declares ‘Lock-out’ and who declares ‘Strike’?

Employer declares Lock-out while employees declare strike.

g) Give two grounds for declaring lay-off under the I.D. Act, 1947

According to Section 2(kkk) of the Industrial Disputes Act, 1947, lay-off (with its grammatical variations and cognate expressions) means the failure, refusal or inability of an employer on account of

a) shortage of coal, power or
b) raw materials or the accumulation of stocks or
c) the break-down of machinery or
d) natural calamity or
e) for any other connected reason

to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched.

h) When can a Lay-off be called illegal?

If there is a failure, refusal or inability on the employer’s part to give the workman concerned due to any other reason than those specified in the definition of lay-off in section 2(kkk) of the Industrial Disputes Act, 1947, then the lay-off is illegal and malafide one.

i) Give any two reasons which can make strike illegal.

According to Section 24 (1) of the Industrial Disputes Act, 1947 a strike or a lock-out shall be illegal if-

(i) it is commenced or declared in contravention of section 22 or section 23; or

(ii) it is continued in contravention of an order made under sub-section (3) of section 10 1[or sub-section (4A) of section 10A].

j) Give any two grounds of illegal lock-out under I.D. Act

According to Section 24 (1) of the Industrial Disputes Act, 1947 a strike or a lock-out shall be illegal if-

(i) it is commenced or declared in contravention of section 22 or section 23; or

(ii) it is continued in contravention of an order made under sub-section (3) of section 10 1[or sub-section (4A) of section 10A].

k) Whether workmen are entitled to wages during illegal strike?

No wages are payable if the strike is illegal or it is unjustified. Further, if the workers indulge in violence, no wages will be payable even when their strike was justifiably legal. The workmen must not take any hasty steps in resorting to strike.

l) Can an establishment be reopened after closure is effected under I.D. Act?

No, under Section 2(cc) of the Industrial Disputes Act, 1947 closure means the permanent closing down of a place of employment or part thereof. But the appropriate government has the power to order the re-starting of undertakings of an industrial establishment to which Chapter VB applies, and which were closed down prior to the commencement of the Amendment Act, 1976. If, however, there has been a valid closure after the 1976 Act, the appropriate government has no power to order the restarting of such an undertaking

m) State one of the condition precedents to retrenchment.

No workman employed in any industry who has been in continuous service for not less than one year under the employer, shall be retrenched by the employer unless – (i) the workman should have been given written notice of one month indicating reasons of retrenchment.

n) What is the penalty for any person who instigates a strike which is illegal under the I.D. Act, 1947?

According to Section 26(1) of the Industrial Disputes Act, 1947 any workman who commences, continues or otherwise acts in furtherance of an illegal strike is punishable with imprisonment for a term extending to 1 month or with fine upto Rs. 50 or with both.

o) What is penalty for declaring illegal lock out?

According to Section 26(2) of the Industrial Disputes Act, 1947 any employer who commences, continues or otherwise acts in furtherance of an illegal lock-out is punishable with imprisonment for a term extending to 1 month or with fine up to Rs. 1,000 or with both.

p) What is penalty for instigating illegal strike or lock-out under the I.D. Act, 1947?

According to Section 27 of the Industrial Disputes Act, 1947 Any person who instigates or incites others to take part in, or otherwise acts in furtherance of an illegal strike or lock-out, is punishable with imprisonment for a term which may extend to 6 months or a fine up to Rs. 1,000 or with both.

q) What is the penalty for closure without notice under I.D. Act, 1947?

According to Section 30A of the Industrial Disputes Act, 1947 any employer who closes down any undertaking without complying with the provisions of Section 25FFA is punishable with imprisonment for a term up to 6 months, or a fine which may extend Rs. 5,000, or with both.

r) Is an employer empowered to declare a lock-out during the pendency of proceedings before a Board and seven days after the conclusion of such proceedings?

No, Employers should not go on lockout during the pendency of any conciliation proceedings before a Conciliation Officer/Board and seven days after the conclusion of such proceedings.

s) Distinguish between lay-off and Lock-out and Lay-off.

Lay-Off	Lockouts
Lay-off is defined in Section 2 (kkk) of Industrial Disputes Act, 1947	Section 2(i) defines “Lock-out” of Industrial Disputes Act, 1947
Lay-off means the failure, refusal or inability of an employer on account of shortage of raw materials, shortage of power, no market demand for finished products etc.	Lock-out means the temporary closing of a place of employment.
Lay-off occurs while the establishment is continuing operation.	In Lock-out, the establishment is completely closed.
In lay-off, the employer is unable to provide employment to one or more workmen due to several reasons generally genuine and owe to economic factors.	Generally, the causes of lock-out lie political, disturbances with trade union leaders, rigid policies of management, etc., besides economic problems.
Compensation shall be paid to the workers laid-off.	Payment of compensation to workers depends upon various factors viz. legal or illegal lock-outs, justified or unjustified.
Generally, the employer declares lay-off under certain genuine circumstances.	Generally, the lock-out is declared by the employer in answer to strike.
Lay-off may be applicable to a group of workers or to entire workers.	Lock-out is applicable to the entire industry

 t) Distinguish between Closure and Lock-out.

Closure­­	Lockouts
Section 2 (cc) defines ‘Closure’.	Section 2(i) defines “Lock-out” of Industrial Disputes Act, 1947
Closure means the permanent closing down of a place of employment or part thereof	Lock-out means the temporary closing of a place of employment.
A closure is not a weapon in the hands of the employer. It equally effects on both the employer and employees	It is a weapon in the hands of the employer against his employees. He uses it as a threat.
A bona fide closure can never be illegal.	A bona fide lock-out can be illegal if it is violated the provisions of Sec. 24.
Closure signifies the final and irrevocable termination of the business itself.	Lock-out signifies the closure of the place of business and not the closure of the business.
In the Closure, the relationship between them comes to an end.	In the lock-out, the relationship between employer and employees does not come to an end.
The causes for the Closure of industry are permanent or lasting and cannot be cured.	The causes for the lockout in an industry are temporary and can be cured.
. Generally, the cause of closure is economical, poor quality of maintenance, poor management, non­availability of raw material, Government policies, etc.	Generally, the causes of lock-out arise from political, disturbances with trade union leaders, rigid policies of the State, and particularly the economic factors too, etc.
Closure cannot be turned into a lock­out.	A lock-out may turn into the closure of an industry.
Closure of an industry is the last resort. It may be due to economic reasons	Generally, the lock-out is declared as an answer to a Strike.

u) Distinguish between Lay-off and Retrenchment.

Lay-Off	Retrenchment
Lay-off is defined in Section 2 (kkk) of the Industrial Disputes Act, 1947	Retrenchment is defined in Section 2 (oo) of the Industrial Disputes Act, 1947
It is temporary	Retrenchment is permanent. They may again be appointed in appropriate cases.
In lay-off, the employer is compelled to refuse employment under certain circumstances, viz. shortage of raw materials, power, finance, etc., which arise temporarily in the industry.	In retrenchment, the employer lessens over-burdened employees under circumstances, viz. Government policies, loss in some departments, etc.
When the employer declares lay-off, the industry stops its function.	While the process of retrenchment is going on, the industry does not stop its function. It continues to function.
In lay-off, all the employees or a group of employees are refused to employment.	In retrenchment, the last come first goes. i.e. last employed person is retrenched first.
The Conditions Precedent is not necessary in case of lay-off.	The Conditions Precedent are to be followed in case of retrenchment, viz. notice to the concerned employee, notice to Government in the prescribed manner, etc. (Sec. 25-F).
The laid-off employees are paid laid-off compensation. The payment of gratuity does not arise in a lay-off.	The retrenched employees are paid retrenchment compensation + payment of gratuity
All of the laid-off employees should be taken back in their usual posts, as soon as the lay-off lifted out.	Re-employment of retrenched workmen also takes place in certain circumstances. But it is, not mandatory that all the retrenched workers should be re-employed. (Sec. 25-H)