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These are the provisions we are looking at today –
- Lay off Section 2(kkk), Chapters VA and VB
- Public utility service Section 2(n), Chapter V
- Strike Section 2(q), Chapter V
- Lockout Section 2(l), Chapter V
- Retrenchment Section 2(oo), Chapters VA and VB
- Closure Section 2(cc), Chapter VB
- Transfer of undertakings Section 25FF
- Unfair labour practices Section 2(ra), Chapter VC
- Lay off Section 2(kkk)
- Lockout Section 2(l)
- If an employer shuts down his place of business as a means of retaliation or as an instrument of coercion or as a mode of exerting pressure on the employees, or, generally speaking, when his act is what may be called an act of belligerency there would be a lockout. If, on the other hand, he shuts down his work because he cannot for instance get the raw materials or the fuel or the power necessary to carry on his manufacturing or because he is unable to sell the goods he has made or because his credit is exhausted or because he is losing money, that would not be a lockout
- Retrenchment Section 2(oo)
- Strike Section 2(q)
- Unfair labour practices Section 2(ra)
- Chapter VC and Fifth Schedule
- Chapter V – Section 23, 24 and 22
- Public utility service Section 2(n)
- , Chapter V
- , Chapter V
- , Chapters VA and VB
- Closure Section 2(cc), Chapter VB
- Transfer of undertakings Section 25FF
- Working to rule, go slow, refusal to work overtime, irritation strike (staying at work but doing everything wrong), running-sore strike (disrupting lawful order), sit-in, stay-in or lie-down strike.
- The cessation or stoppage of work whether by employees or employer is detrimental to the production and economy and to the well-being of the society as a whole. Therefore, the industrial legislation, while not denying the right of workmen to strike, has tried to regulate it along with the right of the employer to lock-out and has also provided machinery for peaceful investigation, settlement, arbitration and adjudication of the disputes between them.
- Mere absence from work does not amount to a strike. There should be evidence to show that the absence was the result of some concert between the workmen, that they would not continue to work.
- When the law or contract of employment or service rules provide for a machinery to resolve the dispute, resorting to strike in such cases is prima facie unjustified.
- When provisions of law, contract or service rules are breached, the strike would in all likelihood be rendered illegal.
- The main question to be answered for determining the status of a strike is whether the dispute was of such a nature that its solution could not brook delay and await resolution by the mechanism provided.
- A strike or lock-out as a weapon should be used sparingly for redressal of urgent and pressing grievances when no other means are available, or when those means have failed to resolve it.
- Special restrictions on public utility undertakings –
- Carrying out important functions
- Employed by the government ensuring basic protection
- Enjoy better working conditions than most others
- Expectation from the management and the labour to act as trustees of the resources that are invested using public funds, and utilize them effectively and not be wasteful
- What are public utility services? Section 2 (n)
- Back-to strikes and lock-outs (Chapter V of the Act)
- Sections 23 – 28. but before that we need to look at the definition of a lock-out.
- Lock-out means 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 or persons employed by him. Section 2 (l).
- So essentially it is the employer’s version of a strike.
- Section 23: a general prohibition applicable to all industrial establishments, and not just public utilities
- An industrial establishment is defined under Section 2 (ka)
- Section 24: Illegal strikes and lock-outs
- Section 25: Prohibition of financial aid
- Section 26:
- Section 26: Penalty for illegal strikes and lock- outs – (1) Any workman who commences, continues or otherwise acts in furtherance of, a strike which is illegal under this Act, shall be punishable with imprisonment for a term which may extend to one month, or with fine which may extend to fifty rupees, or with both.
(2) Any employer who commences, continues, or otherwise acts in furtherance of a lock- out which is illegal under this Act, shall be punishable with imprisonment for a term which may extend to one month, or with fine which may extend to one thousand rupees, or with both.
- This is the first time that actual imprisonment has made an appearance!
- Section 27: Penalty for instigation, etc. – Any person who instigates or incites others to take part in, or otherwise acts in furtherance of, a strike or lock- out which is illegal under this Act, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.
- Section 28: Penalty for giving financial aid to illegal strikes and lock- outs.- Any person who knowingly expends or applies any money in direct furtherance or support of any illegal strike or lock- out shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.
- We know (from Section 22 and 23) that just like strikes, there is a general prohibition on lock-outs (in public utilities and in general). It is treated like the employer’s version of a strike. Let’s also look at what lay-offs are.
- Lay-off means the failure, refusal or inability of an employer on account of shortage of coal, power or raw materials or accumulation of stocks or breakdown 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. Section 2 (kkk)
- Why is retrenchment left out? What should be the consequence of lay-off?
- Let’s look at the Explanation to the definition and Section 25-C.
- So the consequence is compensation for the days for which a worker is laid-off are still owed to the worker. What is that likely to result in?
- Discouragement for laying-off of course!
- Retrenchment is left out because retrenchment is provided for separately under the IDA, attracting a similar but different set of provisions and consequences.
- Continue to look at 25-E, 25-M, 25-Q and 25-B.
- 25-E: among other things, striking / slowing down of production throws any chance of compensation for lay-offs out of the window.
- 25-M: special restrictions on lay-offs in certain factories, mines and plantations.
- 25-K: a certain size of the establishment is also a pre-requisite. Why is that? Agree?
- 25-Q: imprisonment as a consequence for contravention.
- 25-B: “continuous service” – meaning (relevant to 25-C).
- So what are the differences between lock-outs and lay-offs?
- Lock-out means 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 or persons employed by him.
- Lay-off means the failure, refusal or inability of an employer on account of shortage of coal, power or raw materials or accumulation of stocks or breakdown 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.
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