STRIKE

Strike is given under 2(q) of the Industrial disputes act, 1947. This section defines strike as it ,
“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”
As per this section strike includes the following things:
1. Cessation of work by a body of persons employed in any industry acting in combination
2. A concerted refusal of any number of persons who are or have been employed in any
industry to continue to work or to accept employment.
3. A refusal under a common understanding of any number of persons.
In simple words, strike means the stoppage of work by workmen in order to bring pressure on
employer to fulfill their demands during the industrial dispute.

KINDS OF STRIKE
1. General Strike- A general strike is a kind of strike where the workmen join together for a
common cause and stay away from work and deprive the employer from the labour needed
to run factory. It is generally for a longer time period. It is done by workmen when they
fails to achieve their object by other means.
2. Stay -in Strike- It is a kind of strike where the workmen come to the premises of industry
but do not work and carries on strike. It prevents employer to employ other labour. This
strike is also known as tools- down strike or pen- down strike.
3. Go- Slow- It is a kind of strike where workmen come to work and do the work but in a
very slow speed in order to lower down the production. This strike does not come under
section 2(q) of the Industrial disputes act.

PROHIBITION ON STRIKE (IN CASE OF PUBLIC UTILITY)

Section 22(1) of the Industrial disputes act, 1947 deals with the prohibition on strike in case of
public utility services.
As per this section no person employed in public utility service can go on strike in breach of
contract:
1. Without giving to the employer notice of strike within 6 weeks before striking or
2. Within fourteen days of giving such notice or
3. Before the expiry of date of strike specified in notice or
4. During the pendency of any conciliation proceeding and seven days after the conclusion of
such proceedings.
Case- Mineral Minor`s Union vs Kudremukh Iron ore Co. Ltd. – In this case it was held that
provisions of section 22 are of mandatory nature and if the notice of strike expires, workmen have
to give a fresh notice and such notice is also to be comply with the provisions of 22(1). It was also
held that deduction of wages for days of illegal strike is justified.
 LOCKOUT
Section 2(l) defines lockout as 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.
Lockout is basically a weapon in the hands of the management to coerce the labour to come down
to their demand in relation to the conditions of employment. Lockout is basically an antithesis to
the strike.
Basis Lockout Layoff
Definition Lockout is an act on the part of Layoff is an act done for trade
the employer taken to coerce reasons beyond the control of
or pressurize the labour. an employer i.e it is not
intentional act.
Dispute Due to an industrial dispute Not necessarily connected
with the dispute
Section 2(l) of Industrial Disputes Act, 2(kkk) of Industrial disputes
1947 Act, 1947
Inititation It is initiated by the employer It is initiated by the
employees.
Compensation No need of compensation if it Compensation should be
is legal given as per law

DIFFERENCE BETWEEN LOCKOUT AND RETRENCHMENT

Basis Lockout Retrenchment
Time period Temporary Permanent
Employer- Employee It does not end employer- It ends employer employee
relationship employee relationship relationship
Need of dispute Lockout is generally done There is no such need of a
during the industrial dispute dispute in retrenchment

DIFFERENCE BETWEEN STRIKE AND LOCKOUT

Basis Strike Lockout
Meaning It means a cessation of work It means the [temporary
by a body of persons closing of a place of
employed in any industry employment], or the
acting in combination or a suspension of work, or the
concerned refusal, or a refusal refusal by an employer to
under a common continue to employ any
understanding, of any number number of persons employed
of persons who are or have by him.
been so employed to continue
 to work or to accept
employment
Initiated by Employees Employer
Nature Voluntary action Defensive action
Legal provision Section 2(q) of Industrial Section 2(l) of the Industrial
Disputes act, 1947 disputes act, 1947

PROHIBITION ON LOCKOUT ( IN CASE OF PUBLIC UTILITY)

Section 22(2) of the Industrial disputes act, 1947 deals with the prohibition on lockout in cases of
public utility.
As per this section no employer carrying on public utility service shall lock out any of his
workmen-
1. Without giving notice of lockout within 6 weeks before locking out or
2. Within fourteen days of giving such notice or
3. Before the expiry of date of lockout specified in notice or
4. During the pendency of any conciliation proceeding and seven days after the conclusion of
such proceedings.

GENERAL PROHIBITION ON STRIKES AND LOCKOUTS

Section 23 of the Industrial disputes act, 1947 deals with general prohibition on strikes and
lockouts. This section is general in nature and is applicable to both public utility services as well
as non public utility services.
A strike in breach of contract by workmen and lockout by the employer is prohibited in following
cases:
1. During the pendency of conciliation proceedings and seven days after the conclusion of
such proceedings.
2. During the pendency of proceedings before a labour court, tribunal or national tribunal and
two months after the conclusion of such proceedings.
3. During the pendency of arbitration proceedings and two months after the conclusion of
such proceedings.
4. During any period in which settlement or award is in operation.
Case- Workmen of Motor Industries Co. Ltd. Vs Management of Motor Industries Co. Ltd.-
In this case it was held that where the strike was in connection with a matter not covered under
settlement, then the strike cannot be considered as illegal.

ILLEGAL STRIKES AND LOCKOUT

Section 24 of the Industrial disputes act, 1947 deals with illegal strikes and lockout.
As per this section the strike or lockout will be illegal in the following cases:
 1. If it contravenes section 22 or 23 of the Industrial disputes act, 1947.
2. If it contravenes an order made under sub section (3) of section 10.
Exceptions of section 24:
1. If a strike or lockout due to an industrial dispute has already started and is ongoing when
the dispute is referred to a Board, arbitrator, Labour Court, Tribunal, or National Tribunal,
its continuation will not be considered illegal. This applies only if the strike or lockout was
lawful at its start and its continuation has not been prohibited under Section 10(3) or
Section 10A(4A) of the Act.
2. A lockdown declared in consequence of illegal strike or a strike declared in consequence
of illegal lockout is not illegal.

LAYOFF
The term layoff is inserted by the Act 43 of 1953. Section 2(kkk) defines layoff as 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 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.
In simple words, this section defines the layoff as the failure, refusal or inability of employer in
the following cases:
1. Shortage of coal, power or raw materials or
2. Accumulation of stock, or
3. Breakdown of machinery, or
4. Natural calamity, or
5. Any other connected reason.

Explanation of this section provides that Every workman whose name is borne on muster
rolls(official list of workers) of industrial establishment is said to be laid off if he presents himself
at work at proper and did not get any work within two hours of him presenting shall be deemed as
laid off.
When a workman is asked to present himself for second half of the day then it will be called as
laid off only for one half of that day
When a workman presented in second half, still the work is not given to him then he shall not be
deemed laid off for the second half of the shift of the day and is entitled to full basic wages and
dearness allowances.
Nutan Mills vs Employees State Insurance Corporation 1- In this case it was held that the
relationship of master and servant did not continue and was suspended during the period of the
layoff.

1
AIR 1956 Bom 336
 RIGHT TO COMPENSATION
Section 25C of the Industrial disputes act, 1947 gives the workmen right to get compensation from
the employer for the time period in which he was laid off.
A workman who fulfils the following conditions may claim compensation:
1. His name must be written on muster rolls of the industrial establishment
2. Must have completed at least one year`s continuous service.
3. Workman must not be a badli or casual workman
The workman who fulfils the required conditions shall be paid compensation for the days during
which he was laid off, except for weekly holidays. The amount of compensation shall be equal to
fifty per cent of total of the basic wages and dearness allowances which should be payable to him,
if he was not laid off.
Following are the exceptions of right to compensation:
1. If during a period of twelve months a workman is laid off for more than 45 days, then he
will get compensated only for first 45 days and will not get compensation after 45 days
unless there is an agreement contrary to it.
2. When a workman is laid off for a period of 45 days, then he can retrench the workman at
any time after expiry of 45 days. In doing so he must comply with section 25F.

NO COMPENSATION IN FOLLOWING CASES

Section 25E deals provides that a laid off workman shall not be entitled to compensation in the
following cases:
1. Alternative employment- If alternative employment is offered to the workmen and he
refuses to accept such employment then compensation will not be given to the workman.
But the alternative employment should contain following conditions:
(i) Alternative employment is offered in the same establishment or any other
establishment belonging to the same employer situated in the same town or village
or within a radius of five miles from the establishment which he belongs, and
(ii) If employer believes that alternative employment does not call for special skill and
can be done by the laid off workman, and
(iii) If the wages which have been normally paid to the workman in his previous
employment is offered for the alternative employment also.
2. Not present himself at work- If the employee does not present himself for work at the
establishment at the appointed time during normal working hours at least once a day, then
in such a case he is not entitled to compensation..
3. Layoff due to strike- If the layoff is due to strike or slowing down of production on the
part of workmen, then the workmen is not entitled to get compensation.

PROHIBITION OF LAYOFF
Prohibition of layoff is given under section 25-M of the Industrial disputes act, 1947. As per this
section the workman( except badli worker or casual workman) whose name is on muster rolls of
the industrial establishment cannot be laid off without the prior permission of appropriate
government or such authority specified by government
Provided that if layoff is due to shortage of power or natural calamity or in case of a mine such
layoff is due to fire, flood, excess of inflammable gas or explosion, then such a layoff is not
prohibited.
Case- Papansam Labour Union vs Madua Coats Ltd. And another2- In this case the
constitutional validity of section 25 M was challenged and this section was held as constitutionally
valid. Court held that the object of section 25 M is to provide avoidable hardship to the employees
resulting from layoff and maintaining higher production and productivity by preserving industrial
peace and harmony.

RETRENCHMENT
Section 2(oo) deals with retrenchment. According to it Retrenchment means termination of service
of employee by the employer for any reason whatsoever, otherwise than as a punish
It does not include the following:
(a) Voluntary retirement of workman, or
(b) Retirement of employee after reaching the age of superannuation of written in the contract
of employment

(bb) termination of service of employee on the non renewal of contract of employment

(c) Termination of service on ground of continued ill health.

Case- M/s Gammon India Ltd. Vs Sri Niranjan Dass3- In this case services of senior clerks
were terminated due to reduction in the volume of the business of the Company as a result of
recission in work. It was held to be a case of retrenchment because the termination does not fall in
the excluded categories.

CONDITIONS PRECEDENT TO RETRENCHMENT

Section 25F of the Industrial disputes act, 1947 provides that no workman employed in industry
for continuous service for atleast one year shall be retrenched until-

1. Notice to Workman- The workman should be given notice of atleast one month prior to
retrenchment. In the given notice, the employer should mention the reasons of

2
AIR 1995 SC 2200
3
(1984) I LLJ 223 (SC)
 retrenchment. If no notice is given to the workman, then he must be paid wages for the
period of notice.

Case- Microwave Project, Kota and another vs Ramesh Chand4- In this case it was held that
Applicability of section 25F would depend on the applicability of Section 2(oo)(bb).

2. Compensation to Workman- A workman is entitled to compensation at the time of

retrenchment. This compensation should equal fifteen days' average pay for each
completed year of continuous service, including any part of a year exceeding six months.

Case- Krishna Bahadur vs Purna Theatre and others 5- In this case the court held that section
25-F (b) of the Industrial disputes act, 1947 was imperative and the contravention of the section
would render retrenchment void ab initio.

3. Notice to appropriate government- The employer should serve a notice to the appropriate
government or to the authority designated by the appropriate government for this purpose.

PROCEDURE FOR RETRENCHMENT

Section 25G of the industrial disputes act, 1947 provides the procedure of retrenchment. This
section is based on the principle of First come last go and last come first go.

This section provides that if an Indian worker in an industrial establishment is to be retrenched and
such a worker belongs to a specific category of workers, the employer should typically follow the
"last in, first out" rule. This means the worker who was hired last in that category should be
retrenched first, unless the employer has valid reasons (which must be documented) to choose
someone else for retrenchment.
Case- Brohan Kumar vs Barauni Oil refineries 6- In this case it was held that in case of
retrenchment of employee, the employer has to follow the principle of “ last come first go” in the
absence of any agreement between the employer and the workmen. The retrenchment is to be
effected on basis of seniority of employees working category wise and not on the basis of seniority
on a particular job on the date of award, and any departure from the ordinary law embodied in
section 25-G cannot be enforced by employer.

RE- EMPLOYMENT OF RETRENCHED WORKMEN

Section 25H of the Industrial disputes act is based on the principle that when a workmen is
retrenched by employer on the ground of surplus staff, such a workman should be given
opportunity to join service whenever an occasion to employ another hand arises. Following
conditions must be satisfied in order to get employment:

4
2007 III L.L.J. 350 (S.C.)
5
(2004) III L.L.J. 555 (S.C.)
6
AIR 1971 Pat 174
 1. He should have been retrenched prior to re- employment
2. He should be citizen of India
3. He should offer himself for re- employment in response to the notice by the employer.
4. He should have been retrenched from the same category of service in the industrial
establishment in which the re- employment is proposed.

PENALTY FOR LAYOFF AND RETRENCHMENT

Section 25- Q provides that any employer who contravenes the provisions of section 25-M or 25-
N shall be punishable with imprisonment for a term which may extend to one month, or with fine
which may extend to five thousand rupees or both.

DIFFERENCE BETWEEN LAYOFF AND RETRENCHMENT

Basis Layoff Retrenchment
Meaning Temporary suspension of Permanent termination of
employees due to lack of employees for business
work/resources. reasons.
Nature Temporary Permanent
Reasons Shortage of material, power Cost cutting , closure etc.
etc.
Compensation Employees get layoff Employees get retrenchment
compensation compensation

PYQ
Q. Why can the right to retrenchment be granted to employers(2014) 1 marks
Q. “Right to strike is not a fundamental right”. In which case it was decided(2016) 1 marks
Q. What is the difference between strike and lockout(2018) 1 marks
Q. What do you understand by lockout(2019) 1 marks

Q. Define retrenchment(2022) 1 marks

Q. Define layoff(2022) 1 marks

Q. State two kinds of strikes(2022) 1 marks

Q. How is layout compensation linked to social justice(2014) 4 marks

Q. State the difference between layoff and retrenchment under the Industrial disputes act,
1947(2018) 4 marks
Q. Differentiate between strike and lockout(2019) 4 marks
Q. What are the prohibitions on strikes and lock outs in industrial establishments in general and
public utility service in particular? Also bring out the difference between lockout and
closure(2014) 8 marks
Q. Write a detailed note on layoff and retrenchment(2016) 8 marks
Q. Describe the provisions of strike and lockout of ID Act, 1947(2017) 8 marks