Industrial Dispute Act. - Difference Between Loc-kout, Layoff and Closure

Difference Between:

Lockout and Lay-off

Lock-out: 1. Section 2(l) defines “Lock-out”. 2. Lock-out means the temporary closing of a place of employment. 3. In Lock-out, the establishment is completely closed. 4. Generally, the causes of lock-out lie political, disturbances with trade union leaders, rigid policies of management, etc., besides economic problems. 5. Payment of compensation to workers depends upon various factors viz. legal or illegal lock-outs, justified or unjustified. 6. Generally, lock-out is declared by employer in answer to strike. 7. Lock-out is applicable to entire industry or to entire department of that industry.

Lay-Off: 1. Sec. 2 (kkk) defines “Lay-off”. 2. Lay-off means the failure, refusal or inability of an employer on account of shortage of raw materials, shortage of power, excess of finished goods, no market demand for finished products etc. 3. Lay-off occurs while the establishment is continuing operation. 4. In lay-off, the employer is unable to provide employment to one or more workmen due to several reasons generally genuine and owe to economic factors, viz. shortage of coal, raw materials, excess production, shortage of electricity, break-down of machinery, Government policy, no-demand of the finished products in the market, shortage of finance, shortage of space in the storage, etc. 5. Compensation shall be paid to the workers laid-off. 6. Generally, employer declares lay-off under certain genuine circumstances. 7. Lay-off may be applicable to a group of workers or to entire workers, or to the workers to one shift, or some shifts, under certain circumstances.

Lockout and Closure

Lock-Out: 1. Section 2 (I) defines ‘Lock-out’. 2. Lock-out means the temporary closing of a place of employment. 3. It is a weapon in-the hands of employer against his employees. He uses it as a threat. 4. A bona fide lock-out can be illegal, if it is violated the provisions of Sec. 24. 5. Lock-out signifies the closure of the place of business, and not the closure of business. 6. In the lock-out the relationship of employer and employees does not come to an end. 7. The causes for the lock-out in an industry are temporary and can be cured. 8. Generally, the causes of lock-out arise from political, disturbances with trade union leaders, rigid policies of the State, and particularly the economic factors too, etc. 9. A lock-out may turn into closure of an industry. 10. Generally lock-out is declared as answer to a Strike.

Closure: 1. Section 2 (cc) defines ‘Closure’. 2. Closure means the permanent closing down of a place of employment or part thereof. 3. Closure is not a weapon in the hands of employer. It equally effects on both the employer and employees. 4. But a bona fide closure can never be illegal. 5. Closure signifies the final and irrevocable termination of the business itself. 6. In the Closure, the relationship between them comes to an end. 7. The causes for the Closure of an industry are permanent or lasting and cannot be cured. 8. Generally, the cause of closure is economical, poor quality of maintenance, poor management, non ­availability of raw material, Government policies, etc. 9. A closure cannot be turned into a lock­out. 10. Closure of an industry is a last resort. It may be due to economic reasons