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Di erence Between Layo and Lock-out

May 31, 2017 By Surbhi S — Leave a Comment
Industrial Dispute, can be defined as the conflict between employer and employee,
that is a result of a disagreement in their industrial relation, which is due to a clash
of interest, resulting in dissatisfaction, for either of the parties concerned. Such
disputes may take different forms like a strike, lock-out, dismissal of workers,
protests etc. Lock-out is a situation, wherein there is a provisional closure of the
place of employment, as a result of strike executed by trade unions or due to certain
political reasons.
Conversely, layoff implies a temporary situation, wherein the employer fails to
give employment to a group of workers, due to lack of resources.

In Lock-out the business is shut down temporarily, while this is not the case with
the lay-off. In this article excerpt, you can find all the substantial differences
between lay-off and lock-out.

Content: Layo Vs Lock-out

 1. Comparison Chart
2. Definition
3. Key Differences
4. Similarities
5. Conclusion

Comparison Chart

BASIS FOR
LAYOFF LOCK-OUT
COMPARISON

Meaning Lay-off alludes to the involuntary Lock-out, means the

separation of the employees of a
department or unit, by the
employer due to his/her failure to
provide employment.
refusal of employer to
continue to employ the
workers, despite any
intention to close the
unit.
 BASIS FOR
LAYOFF LOCK-OUT
COMPARISON

Process It is a process in which the It is a process in which

employer refuses to give the employer voluntarily
employment to the employees for closes the business, not
certain specified reasons. because of any specified
reasons.

Declaration The employer declares lay-off The employer declares

under specific circumstances. lock-out, as a result of
industrial dispute.

Applicability Only to group of workers, that To entire establishment

may be workers of a shift, and sometimes industry.
department or unit, depending on
the circumstances.
 BASIS FOR
LAYOFF LOCK-OUT
COMPARISON

Business Continues to operate Closed down for the

period of lock out.

Result of Trade-reasons. Weapon of collective

bargaining.

Compensation Compensation is paid to the laid In lock out compensation

off workers. is paid to the worker as
per the type of lock out.
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De nition of Layo
The layoff may be defined as the provisional separation of the employees at the will
of the employer, because of his/her inability to give employment to the employee
whose name is entered on the muster rolls, of the establishment and is not
retrenched. It can be caused due to a shortage of resources such as coal, power or
raw material, economic slowdown machinery breakdown, accumulation of stock
and so on.

Lay-off lasts for a particular period, which when ends up, the employee will be
recalled by the employer to join the office or factory at the same job and position.
However, the period may extend to any length of time. The employee provided with
adequate compensation by the employer, because, layoff takes place at the instance
of the employer.

De nition of Lock-out
Lock-out can be understood as the exclusion of workers from the place of work by
the employer, that lasts till certain terms are agreed upon by both the employer and
employee. In this situation, the employer withholds work by refusing to put
employees at work and restricts employees access to the workplace, without any
intention to close down the division or unit. In this, the employees are prohibited
from entering the company premises, which is caused by internal and external
disturbances.
Basically, a lock-out is nothing but a management’s strike during a labor dispute, in
which the workers are compelled to settle down on the terms that are favorable to
the management. It is announced by the management as a result of clashes
between management and workers, because of unjustified demands by the workers
or bad treatment of workers by the management.

Key Di erences Between Layo and Lock-out

The points presented below explain the differences between lay-off and
lock-out:

1. The situation in which the employer fails or refuses to provide

employment to a group of employees that lasts for a specified term is
known as a layoff. Lock-out connotes a provisional shutdown of the
enterprise by the employer, which is caused by the management’s
failure, as a result of the internal or external disruption.

2. The layoff is a process in which the employer refuses to give

employment to the employees for certain specified reasons. On the
 other hand, the lock-out is in which the employer voluntarily shuts the
business, because of conflicts between workers and management.

3. Lay-off is applicable to a group of workers, that may be workers of a

shift, department or unit, depending on the circumstances. Conversely,
lock-out to the whole establishment and sometimes industry.

4. In lay-off, the business continues to operate, whereas in lock-out the

business closed down for a particular period.

5. Lay-off can occur due to trade reasons such as lack of resources,

economic downturn, machinery breakdown etc. On the other hand,
lock-out can occur as a result of a strike conducted by employees, to
compel an employer to agree with the unjustified demands or change
the unfair labor practices.

6. When it comes to compensation, in lay-off the compensation is

provided to the workers laid-off, while in the case of lockout, no such
compensation is provided.
Similarities
Both layoff and lock-out are a temporary separation of employees, at the instance
of the employer, wherein there is no termination of the contract of employment
rather it is terminated for the time being.

Conclusion
By far, both the situation discussed above are not good for a company as it causes
harm to the reputation and goodwill. Lock-out is caused by differences reasons
such as wages, political interference, unfair labor practices, economic slowdown
and so on. On the other side, lay off can be caused by trade reasons.
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