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. Just as

the strike is a weapon in the hands of the workers for enforcing their demands,
lockout is a weapon available to the employer to make their employees come to their
way and accept the management's terms and conditions.

According to section 22 of The Industrial Disputes Act, 1947, lockout of factory or

industry must be done only after issuing prior notice to concern employees. If not,
such lockout shall be treated as illegal lockout and concerned factory or industry
shall be penalised according to the Industrial Disputes Act 1947.

Essentials of a Lockout
Under the Industrial Disputes Act, 1947, a lockout is a powerful tool available to
employers in response to industrial unrest. 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 of employer should be motivated by coercion.

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

• There should be a dispute in the industry, which may involve conflicts over
employment terms, conditions, or other work-related matters.

• The employer must give notice to the workmen or the union representing them
before initiating a lockout.

The Reasons Behind The Lockouts

1. Disputes or clashes in between workers and the management.

2. Unrest disputes or clashes in between workers and workers.

3. Illegal strikes, regular strikes or continuous strikes by workers may lead to

lockout of factory or industry.
 4. External environmental disturbance due to unstable governments may lead to
lockouts of factories or industries.

5. Continuous or accumulated financial losses of factory or industry may lead to

opt lockout by the management.

6. Maybe lockout if any company involves in any fraudulent or illegal activities.

7. Failure in maintaining proper industrial relations, industrial peace, and

harmony.

8. Lockout of the factory is regarded as a major issue which affects both

management of the factory and their employees. Management should always
monitor employee's behavior and relationship between employees and
relationship in between management and employees to avoid disputes which
leads to lockouts.

Pocedure of Lockout under industrial dispute act 1947

To initiate a lockout under the Industrial Disputes Act, 1947:

1. Provide written notice to affected workmen or their union, specifying reasons and
commencement date.
2. Obtain prior permission from the appropriate government authority if required.
3. Avoid using the lockout for employee retrenchment.
4. Ensure a reasonable duration with a specific purpose.
5. Maintain communication with workmen during the lockout.
6. No wages are payable to workmen during the lockout, except in the case of an illegal
strike.
7. Actively engage in conciliation and negotiations for dispute resolution.
8. Intimate closure, if applicable, to the appropriate government authority within thirty
days.