lockout and closure, strike and lockout

by • 15/01/2013 • GeneralComments (0)954

Q-7      Describe lockout and closure also explains strike and lockout. OR State when strike and lockout shall be illegal under LR.O.




Strike means cessation of work by a body of persons employed in any establishment acting in combination or concerted refusal or refusal under a common understanding of any number of persons who have been so employed to continues to work or to accept employment, (Sec. xxviii)


Lock out means the closing of a place of employment or part of such place or the suspension, of work, wholly or partly, by an employer, or refusal, absolute or conditional, by an employer to continue to employ any number of workmen employed by him where such closing, suspension or refusal occurs in connection with an industrial dispute or is intended for the purpose of compelling workmen employed to accept certain *terms and conditions of or affecting employment. (Sec. 26(xx))

The law relating to an illegal strike and lock out is as under Sec38.

1.         A strike or lock out shall be illegal if it is declared, commenced or continued without giving notice to the other party to a dispute in the prescribed manner.

2.         A strike declared by a C.B.A., which has not been registered, shall be illegal strike.

3.         If a lock out is declared by an employer before the expiry of period of notice of lock out, it is illegal.

4.         If a settlement or award is in existence on any matter, a lock out or strike declared on the same issue shall be illegal.






Lock-out indicates the closure of the place of business and not the closure of the business itself. In the case of closure of business, the employer does not merely close down the place of business but he closes the business itself. So the closure indicates the final and irrevocable termination of the business itself.

Experience of industrial tribunal’s shows that the lock-out is often used by the employer as a weapon in the armory to compel the workmen to accept the proposal just as a strike is a weapon to the armory of the workmen to compel the employer to accept their demand- Though the distinction between the two concepts is thus clear, in theory. In practice is not always easy to decide whether the act of closure, really amounts to a closure properly so called, or whether it is a! disguise for a lock-out.



The workmen and the employer have a right to declare a strike or lock-out under the following circumstances:

(a)        If a settlement is not arrived at during the course of conciliation proceedings, or

(b)        If parties to the dispute do not agree to refer the dispute to arbitrator.

The workmen can go on strike and employer can adopt lock-out if following time schedule is followed:

(a)        Workmen must give 7 days notice.

(b)        Employer has to follow the later of the following periods:

(i)         Expiry of 15 days period, or

(ii)        Upon declaration of failure of conciliation proceedings. Reference ToLabour Court[Section 31(2)1


The party raising a dispute may at any time either before or after the commencement of strike or lock-out make an application toLabour Courtfor adjudication of dispute.



The strike or lock-out may be prohibited:

(a)        By the Federal Government if it relates to dispute which the commissioner is competent to adjudicate or determine.

(b)        By a Provincial Government if it relates to any other dispute.

(c)        Federal Government or Provincial Government (with approval of Federal Government) before the expiry of 30 days prohibit strike or lock-out if it is causing serious hardship or prejudicial to national interest.

(d)        If the strike or lock-out is prohibited the dispute shall forthwith be referred to the commission or Labour Court by Federal or Provincial Government.


Commission/Labour Court Action {Section 31(5)]

The Commission or Labour Court shall give both parties to the dispute an opportunity of being heard. Thereafter an award shall be made expeditiously but not in more than 30 days. However, an interim award may also be made. Any delay shall not affect the validity of award. It will be not for more than 2 years.



Illegal Strike

According to Section 2(xv), illegal strike means a strike declared, commenced or continued otherwise than in accordance with the provisions of IRO 2002.


Illegal Lock-Out

According to Section 2(xiv), means a lock-out declared, illegal lock-out commenced or continued otherwise than in accordance with the provisions of the law.

A strike or lock-out shall be illegal in the following circumstances:

(a)        It is declared, commenced or continued without giving to the other party to the dispute a notice of strike or lock-out on or before the date of strike or lock-out or in contravention of Section 36, or

(b)        It is declared, commenced or continued in consequence of an industrial dispute raised in a manner other than provided in Section 35.

(c)        It is continued in contravention of an order made under Section 31, 32, 37 and 39(3).

(d)        It is declared, commenced or continued during the period in which settlement or award is in operation in respect of any of the matters covered by the settlement or award.

(e)        Lock-out declared in consequence of an illegal strike is not illegal. (0 r> Strike declared in consequence of an illegal lock-out is not illegal.


Procedure When Strike or Lock-Out Illegal [Section 39]

When a strike or lock-out under the Ordinance, is illegal the action shall be as follows:

1.         A government officer shall make inquiries into an illegal strike or lock-out and make a report toLabour Court.

2.         The officer, after the inquiry, gives notice to employer and CBA or registered trade union to appear before theLabour Court.

3.         Labour Court, within 10 days, after considering the-report and hearing order the strike called off or lock-out lifted.

4.         If employer contravenes order of labour court, it may attach factory and appoint an official receiver.

5.         Official receiver shall manage the business and do all necessary acts for conducting business

6.         If the workers contravene order ofLabour Courtit may pass orders of dismissal of all sinking workers.

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