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Business Environment and Law-Industrial Disputes Act, 1947

Difference between Lock-out and Lay-off - Industrial Disputes Act, 1947

   Posted On :  15.05.2018 03:05 am

Difference between Lock-out and Lay-off - Industrial Disputes Act, 1947

Difference between Lock-out and Lay-off

1. Under lock-out the employer refuses to give employment because of closing of a place of employment or suspension of work. Under lay-off the employer refuses to give employment because of shortage of coal, power or raw materials or the accumulation of stocks or the breakdown of machinery or natural calamity or for any other reason to give employment.
 
2. Lock-out is resorted to by the employer to coerce or pressurize the workmen to accept his demands; lay-off is for trade reasons beyond the control of the employer.
 
3. Lock-out is due to an industrial dispute and continues during the period of dispute; lay-off is not concerned with a dispute with the workmen.
 
However, both are of temporary nature and in both cases the contract of employment is not terminated but remains in suspended animation.

 

Tags : Business Environment and Law-Industrial Disputes Act, 1947
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