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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