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7 Most Important Differences Between Lock-Out and Lay-Off Are As Follows: Lock-Out

Lock-out and lay-off are different responses by employers during labor disputes or economic hardship. A lock-out involves completely closing a business in response to a strike, while a lay-off occurs when an employer has to temporarily stop work for some employees due to issues like lack of materials or demand. Key differences are that a lock-out shuts down the entire establishment, generally in response to a union dispute, whereas a lay-off allows part of the establishment to keep operating due to economic factors beyond the employer's control. Compensation requirements also differ depending on whether the work stoppage is a legal lock-out or lay-off.

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1K views1 page

7 Most Important Differences Between Lock-Out and Lay-Off Are As Follows: Lock-Out

Lock-out and lay-off are different responses by employers during labor disputes or economic hardship. A lock-out involves completely closing a business in response to a strike, while a lay-off occurs when an employer has to temporarily stop work for some employees due to issues like lack of materials or demand. Key differences are that a lock-out shuts down the entire establishment, generally in response to a union dispute, whereas a lay-off allows part of the establishment to keep operating due to economic factors beyond the employer's control. Compensation requirements also differ depending on whether the work stoppage is a legal lock-out or lay-off.

Uploaded by

Michael Ruiz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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7 Most Important Differences between Lock-Out and Lay-Off are as

follows:
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.

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