Strikes,Lock-out,Layoff and Retrenchment

By Click to edit Master subtitle style LAKSHMI SURESH.K MBA S3 HR NO:16

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Introduction
Every right comes with its own duties. Most powerful rights have more duties attached to them. Today, in each country of globe whether it is democratic, capitalist, socialist, give right to strike to the workers. But this right must be the weapon of last resort because if this right is misused, it will create a problem in the production and financial profit of the industry. This would ultimately affect the economy of 3/17/12 the country.

Strikes and Lockout

Position in India
In India unlike America right to strike is not expressly recognized by the law. The trade union Act, 1926 for the first time provided limited right to strike by legalizing certain activities of a registered trade union in furtherance of a trade dispute which otherwise breach of common economic law. Now days a right to strike is recognized only to limited 3/17/12

"the right to strike or right to declare lock out may be controlled or restricted by appropriate industrial legislation and the validity of such legislation would have to be tested not with reference to the criteria laid down in clause (4) of article 19 but by totally different considerations." Thus, there is a guaranteed 3/17/12 fundamental right to form

STRIKES
It means

the cessation of the work by a body f persons employed in any industry acting in combination or A concerted refusal of any number of persons who are or have been so employed to continue work or to accept employment;or A refusal under a common 3/17/12 undertaking of any number of such

Provision of valid strike under the Industrial Dispute Act, 1947- Section 2(q) of said Act defines the term strike, it says, "strike" means a cassation of work by a body of persons employed in any industry acting in combination, or a concerted refusal, or a refusal, under a common understanding of any number of 3/17/12 persons who are or have been so

It provides that no person employed in public utility service shall go on strike in breach of contract: (a) Without giving to employer notice of strike with in six weeks before striking; or (b) Within fourteen days of giving such notice; or (c) Before the expiry of the date of 3/17/12 strike specified in any such notice as

It is to be noted that these provisions do not prohibit the workmen from going on strike but require them to fulfill the condition before going on strike. Further these provisions apply to a public utility service only. The Industrial Dispute Act, 1947 does not specifically mention as to who goes on strike. However, the definition of strike itself suggests that the strikers 3/17/12 must be persons, employed in any

Notice of strike Notice to strike within six weeks before striking is not necessary where there is already lockout in existence. Inmineral Miner Union vs. Kudremukh Iron Ore Co. Ltd., it was held that the provisions of section 22 are mandatory and the date on which the workmen proposed to go on strike should be 3/17/12 specified in the notice. If meanwhile

Against this a writ petition was preferred in the High Court of Rajasthen. Reversing the decision of the TribunalJustice Wanchooobserved: " ....We are of opinion that what is generally known as a lightning strike like this take place without notice..... And each worker striking ......(is) guilty of misconduct under the 3/17/12 standing orders ........and liable to be

General prohibition of strikeThe provisions of section 23 are general in nature. It imposes general restrications on declaring strike in breach of contract in the both public as well as non- public utility services in the following circumstances mainly: (a)During the pendency of 3/17/12 conciliation proceedings before a

The principal object of this section seems to ensure a peaceful atmosphere to enable a conciliation or adjudication or arbitration proceeding to go on smoothly. This section because of its general nature of prohibition covers all strikes irrespective of the subject matter of the dispute pending before the authorities. It is noteworthy that a 3/17/12 conciliation proceedings before a

Illegal StrikeSection 24 provides that a strike in contravention of section 22 and 23is illegal. This section is reproduced below: (1)A strike or a lockout shall be illegal if, (i) It is commenced or declared in contravention of section 22 or 3/17/12 section 23; or

(2)Where a strike or lockout in pursuance of an industrial dispute has already commenced and is in existence all the time of the reference of the dispute to a board, an arbitrator, a Labour court, Tribunal or National Tribunal, the continuance of such strike or lockout shall not be deemed to be illegal;, provided that such strike or lockout was not at its commencement 3/17/12 in contravention of the provision of this

Consequence of illegal Strike-

Dismissal of workmenInM/S Burn & Co. Ltd. V, Their Workmen, it was laid down that mere participation in the strike would not justify suspension or dismissal of workmen. Where the strike was illegal the Supreme Court held that in 3/17/12 case of illegal strike the only

Wagesit was held that in order to entitle the workmen to wages for the period of strike, the strike should be legal and justified. A strike is legal if it does not violate any provision of the statute. It cannot be said to be unjustified unless the reasons for it are entirely perverse or unreasonable. Whether particular strike is justified or not is a 3/17/12 question of fact, which has to be

The constitutional bench inSyndicate Bank v. K. Umesh Nayakdecided the matter , the Supreme Court held that a strike may be illegal if it contravenes the provision of section 22, 23 or 24 of the Act or of any other law or the terms of employment depending upon the facts of each case. Similarly, a strike may be justified or 3/17/12 unjustified depending upon several

Right of employer to compensation for loss caused by illegal strikeInRothas 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 3/17/12 illegal because such compensation is

Lockout

It means 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.
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Notice of lock out:

No employer carrying on any public utility service shall lock out any of his workmen without giving them notice of lockout as hereinafter provided, within six weeks before locking out; or within fourteen days of giving such 3/17/12 notice; or

The notice of lockout shall be given by an employer in prescribed form. The notice shall be displayed conspicuously by the employer on a notice board at the main entrance to the establishment and in the manager's office: Provided that where a registered trade union exists, a copy of the 3/17/12 notice shall also be served on the

Report of lock-out by employer

If on any day an employer receives from any person employed by him any notice of strike or gives to any persons employed by him any notice of lock-out, he shall within five days thereof, and report to the appropriate government or to such authority as that government may prescribe the number of such notices received or 3/17/12

Lay off and Retrenchment

Lay off means failure, refusal or inability of employer on account of shortage of coal, power or raw materials or accumulation of stock or break down of machinery or natural calamity; to give employment to a workman on muster roll. - - Lay off means not giving employment within two hours after reporting to work. - Lay off can be for half day also. In 3/17/12 such case, worker can be asked to

A factory employing 50 or more but less than 100 employees on an average per working day can lay off the workmen, who have completed one year of service, by paying compensation equal to 50% of salary (basic plus DA) (section 25C of IDA). - Employer can offer him alternate employment, if the alternate employment does not call for any 3/17/12 special skill or previous experience,

Above provisions of compensation for lay off do not apply to (a) Industrial establishments employing less than 50 workmen (b) seasonal industry (c) Establishments employing 100 or more workmen, as in their case, prior approval of Appropriate Government is necessary u/s 25M(1)
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Provisions for large industries for lay off

large industries employing 100 or more workmen on an average for preceding 12 months cannot lay-off, retrench or close down the undertaking without permission from Government (sections 25M to 25-O of Industrial Disputes Act)..
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Retrenchment Retrenchment means termination by the employer of service of a workman for any reason, other than as a punishment inflicted by a disciplinary action. However, retrenchment does not include voluntary retirement or retirement on reaching age of superannuation or termination on account of non-renewal of contract or 3/17/12 termination on account of continued

Retrenchment means discharge of surplus labour or staff by employer. It is not by way of punishment. The retrenchment should be on basis of last in first out basis in respect of each category, i.e. junior-most employee in the category (where there is excess) should be retrenched first. [section 25G]. If employer wants to re-employer persons, first 3/17/12 preference should be given to

Meaning of continuous service Provisions of compensation

for lay off and retrenchment are applicable only to workman who is in continuous service for one year. As per section 25B, continuous service includes service interrupted by sickness, authorised leave, accident or strike which is not illegal, or lock-out or cessation of work which is not due to 3/17/12

Procedure for retrenchment

Section 25F, Industrial Disputes Act, provides that where any workman in an industrial establishment, who is a citizen of India, is to be retrenched and he belongs to a particular category of workman in that establishment, in the absence of any agreement between the employer and the workman in this behalf, the 3/17/12

Difference between lock out and lay off

The concept of 'lock-out' is essentially differnt from the concept of 'lay-off' and so where closure of business amounts to a 'lock-out under S. 2(l), it would be impossible to bring it within the scope of 'lay-off' under S.2(kkk). The points of distinction between 'lay-off' and 'lock-out' may be broadly stated as follows:
1.

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'Lay-off' generally occurs in

3. In the case of 'lay-off', the employer may be liable to pay compensation as provided by Ss. 25C, 25D and 25E of the Act, but liability for compensation cannot be invoked in case of 'lock-out', as the liability of the employer in cases of 'lock-out would depend upon whether the 'lock-out' was justified and legal or not. 4. The provisions applicable to the 3/17/12

Difference between strike and lockout

Astrikeis a temporary work stoppage effected by one or more groups of workers with a view to enforcing or resisting demands or expressing grievances, or supporting other workers in their demands or grievances. Alockoutis a total or partial temporary closure of one or more places of employment, or the 3/17/12

Workers involved in a strike: Workersdirectly involvedin a strike are those who participated directly by stopping work. Workersindirectly involvedin a strike are those employees of the establishments involved, or self-employed workers in the group involved, who did not participate directly by stopping work but who were prevented from 3/17/12 working because of the strike.