UNIVERSITY INSTITUTE OF LEGAL STUDIES, PANJAB
UNIVERSITY, CHANDIGARH
A PROJECT REPORT SUBMITTED AS A PART OF CURRICULUM OF
BCOM.LL.B.(HONS.) IN THE SUBJECT OF LABOUR LAW ON THE TOPIC OF:
STRIKE AND LOCK-OUT
SUBMITTED TO: SUBMITTED BY:
PROF. SHALLU DIKSHA
UILS B.COM LLB. (HONS.)
PANJAB UNIVERSITY SEM- 9 SEC- E 375/20
CHANDIGARH UILS, PU, CHANDIGARH
ACKNOWLEDGEMENT
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I would like to express my deep gratitude to my teacher, Prof. Shallu, University Institute of
Legal Studies, Chandigarh, for her valuable guidance and constructive suggestions during the
planning and development of this project on the topic:
Strike and Lock-out
I wish to acknowledge the help provided by my friends and parents in finishing this project
within the limited time frame.
DIKSHA
B.COM.LL.B. (HONS.)
SEM-9 SEC- E
ROLL NO. 375/20
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INDEX
ACKNOWLEDGEMENT.......................................................................................................................2
INDEX.....................................................................................................................................................3
INTRODUCTION...................................................................................................................................4
STRIKE...................................................................................................................................................4
MEANING OF STRIKES................................................................................................................4,5
CAUSES OF STRIKES....................................................................................................................5,6
TYPES OF STRIKE............................................................................................................................7
LOCK-OUT.............................................................................................................................................8
DEFINITION.......................................................................................................................................8
CAUSES..............................................................................................................................................9
TYPES.................................................................................................................................................9
PROHIBITION OF STRIKES AND LOCK-OUTS....................................................................10,11,12
ILLEGAL STRIKES AND LOCK-OUTS.......................................................................................13,14
PUNISHMENT FOR ILLEGAL STRIKES..........................................................................................14
IS RIGHT TO STRIKE A FUNDAMENTAL RIGHT?.......................................................................15
IMPACT OF ILLEGAL STRIKE & ILLEGAL LOCK-OUT..............................................................15
CONCLUSION......................................................................................................................................16
BIBLIOGRAPHY.................................................................................................................................17
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INTRODUCTION
Strike and lock-out are two powerful weapons in the hands of the workers and the
employers. Strike signifies the suspension or stoppage of work by the worker while in case
of lock-out the employer compels persons employed by him to accept his terms or
conditions by shutting down or closing the place of business. Strike is recognized as an
ordinary right of social importance to the working class to ventilate their grievances and
thereby resolve industrial conflict.
Skillful use of these weapons, whether threatened or actual, may help one party to force the
other to accept its demand or atleast to concede something to them. But reckless use of
them results in the risk of unnecessary stoppage of work hurting both parties badly creating
worse tensions, frictions and violations of law and order. From the point of view of the
public, they retard the nation’s economic development. India cannot tolerate frequent
stoppage of work for frivolous reasons that often accompany it.
For these reasons, the Industrial Disputes Act seeks to regulate and restrict strikes and lock-
outs so that neither the workmen nor employers may hold the nation to ransom.
STRIKES
Meaning of strikes
Strike as defined in clause (q) of Section 2 of the Industrial Disputes Act, 1947 means:
1. Cessation of work by a body of persons employed in any industry acting in
combination; or
2. A concerted refusal of any number of persons who are or have been employed in
any industry to continue to work or to accept employment; or
3. A refusal under a common understanding of any number of persons who are or
have been employed in any industry to continue to work or to accept employment.
Thus the definition given in the act postulates two main ingredients:
(a) Cessation of work or refusal to do work.
(b) Combination or concerted action;
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a) CESSATION OF WORK OR REFUSAL TO DO WORK
Cessation of work or refusal to work is an essential element of strike. This is the most
significant characteristic of the concept of strike. There can be no strike if there is no
cessation of work. The cessation of work may take any form. It must however be
temporary and not forever and it must be voluntary. No duration can be fixed for this in
fact duration for cessation of work is immaterial. Cessation of work even for half an hour
amounts to strike.
Buckingham & Carnatak Co. Ltd. v/s Workers of Buckingham& CarnatakCo. Ltd. 1
The management did not comply with the workmen's demand of declaring a half day
holiday on the occasion of solar eclipse. As a result, the workmen struck work for four to
five hours. As it was a case of complete cessation of work and the workmen were acting
in combination and their refusal to go back to work was concerted, therefore this
cessation of work was held to be within the definition of strike. The court made the
following observation:
‘If a number of employees stay away from work in pursuance of an understanding they
have previously come to there would be a strike; but if they keep away because all of
them happen to have been suddenly taken ill by a wave of fever of dysentery, for
instance, there would be no strike.’
b) COMBINATION OR CONCERTED ACTION
Concerted action is another important ingredient of strike. The workers must act under a
common understanding. The cessation of work by a body of persons employed in any
industry in combination is a strike. Stoppage of work by workers individually does not
amount to strike.
Ram Sarup & Another v/s Rex2, it was held that a mere absence from work is not enough,
but there must be concerted refusal to work, to constitute a strike.
1
AIR 1953 SC 47
2
AIR 1949 All 218
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Causes of strikes
Although strikes can be caused by a variety of reasons, the following are certain important
reasons for the same:
Dissatisfaction with company policy
Salary and incentive problems
Increment not up to the mark
Wrongful discharge or dismissal of workmen
Withdrawal of any concession or privilege
Hours of work and rest intervals
Leaves with wages and holidays
Bonus, profit sharing, Provident fund and gratuity8
Types of strikes
Strikes can be broadly be classified into the following categories:
i. Legal Strikes: Strikes that comply with the provisions of the Industrial Disputes Act, including
giving prior notice to the employer fall under the category of legal strikes.
ii. Illegal Strikes: Strikes that do not adhere to the legal requirements, which can result in
penalties for the workers involved.
iii. General Strikes: Involves a large number of workers across various industries. It means a strike
by members of all or most of the unions in a region or an industry. It may be a strike of all the
workers in a particular region of industry to force demands common to all the workers.
iv. Hunger Strikes: Workers refuse to eat to protest against conditions.
v. Sit-in Strikes: Workers occupy the workplace without actually working. In other words, the
workers do not absent themselves from their place of work when they are on strike. They keep
control over production facilities. But do not work. Such a strike is also known as 'pen down' or
'tool down' strike.
vi. Slow-down strikes: These strikes involves deliberate slow-down of the process of production
by the protesting workers in order to cause loss of production to the employer. The hon’ble
Supreme Court held that go-slow is not considered as strike within the ambit of Section 2
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LOCK-OUT
Definition
‘Lock-Out’ has been defined in section 2(1) to mean the closing of a place of employment,
or the suspension of work, or the refusal by an employer to continue to employ any number
of persons employed by him.
Lock-Out is a weapon in the hands of the management to coerce the labour to come down
in their demands relating to the conditions of employment. Lock-Out is the keeping of
labour away from works by an employer with a view to resist their claim.
There are three ingredients of Lock-Out:
a) temporary closing of a place of employment by the employer, or
b) suspension of work by the employer, or
c) refusal by an employer to continue to employ any number of persons employedby
him;
.
Lock-Out has been described by the Supreme Court as the antithesis of strike.
Shri. Ramchandra Spinning Mills v/s State of Madras1, it was held that If the employer shuts
down his place of business as a means of reprisal 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 lock- out.
In case of Lock-Out the workmen are asked by the employer to keep away from work,
and, therefore they are not under any obligation to present themselves for work. So also
Lock-Out is due to and during an industrial dispute.
Causes of Lock-outs
Lock-Outs may be caused by:
(a) internal disturbances, when the factory management goes in to financial crisis or got
succumbed into financial debts, disputes between workers and workers, disputes
between workers and management or may be caused by ill- treatment of workers by
1
AIR 1956 SC Mad 241
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the management, or
(b) external influences, such as unnecessary political parties involvement in
management of workers, union may be provoked for unjustified demands that may be
unaffordable by the management, which may ultimately lead to lockout of the
factory.
Following can be some other reasons for lockouts:
Disputes or clashes between workers and the management.
Unrest, disputes or clashes in between workers and workers.
Illegal strikes, regular strikes or continuous strikes by workers.
Continuous or accumulated financial losses of factory or industry.
If any company involves in any fraudulent or illegal activities.
Failure in maintaining proper industrial relations, industrial peace and harmony.
Types of lock out
(a) Preventive Lockouts: Initiated by employers to prevent anticipated disruptions.
(b) Retaliatory Lockouts: Used by employers in response to a strike.
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PROHIBITION OF STRIKES AND LOCK-OUTS
Section 22 and 23 of the Industrial Disputes Act, 1947 contain special and general
prohibition on Strike and Lock-out.
Special Prohibition on Strike and Lock-outs for Public Utility Services
Section 2, clause (n) defines “public utility service” as
(i) any railway service or any transport service for the carriage of passengers or
goods by air;
(i-a) any service in, or in connection with the working of, any major port or dock or
any industrial establishment or unit engaged in essential defence services;
(ii) any section of an industrial establishment, on the working of which the safety of
the establishment or the workmen employed therein depends;
(iii) any postal, telegraph or telephone service;
(iv) any industry which supplies power, light or water to the public;
(v) any system of public conservancy or sanitation
Section 22(1): No person employed in public utility service shall go on strike in breach of
contract:
a) Without giving to the employer notice of strike within six weeks before striking; or
b) Within fourteen days of giving such notice; or
c) Before the expiry of the date of strike specified an any such notice as aforesaid; or
d) During the pendency of any conciliation proceedings before a Conciliation Officer
and seven days after the conclusion of such proceedings.
These provisions do not prohibit the workmen from going on strike but require them to
fulfill the conditions before going on strike. These provisions apply to a public utility
service only and not to a non- public utility service.
The object of giving notice of strike is to enable the other party to make amends or to come
to terms or redress the grievance or to approach the authorities to intervene and stop, if it is
possible the threatened action. Secondly, notice may be given by the Trade Union or
representatives of the workmen to do so. Thirdly, a notice of strike shall not be effective
after six weeks from the date it is given. The strike can take place only when 14 days
have passed but before 6 weeks have expired after giving such notice.
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Section 22(2): No employer carrying on any public utility service shall lock-out any of his
workmen:
a) Without giving them notice of lock-out as herein after provided within six weeks
before locking out; or
b) Within fourteen days of giving such notice; or
c) Before the expiry of the date of lock-out specified in any such notice as aforesaid;
or
d) During the pendency of any conciliation proceeding before a Conciliation Officer
and seven days after the conclusion of such proceedings.
Section 22(3): Notice of strike or lock-out as provided by sub-sections (1) and (2) many in
certain cases be dispensed with.
(1) No notice of strike shall be necessary where there is already in existence a lock-
out in the public utility service concerned.
(2) No notice of lock-out shall be necessary where there is already in existence a
strike in the public utility service concerned.
S. 22(3) is in the nature of an exception of S. 22(1) and 22(2).
H.M.T. Ltd. v. H.M.T. Head Office Employees Association2The workmen in public utility
service went on illegal strike. In consequence of this illegal strike, the employer declared lock-out
without giving any notice to the workmen under Section 22(2) of the Act. The Supreme Court in this
case¹ held that lock-cut in consequence of illegal strike is legal even if it is declared without giving
notice to the workmen under Section 22(2) of the Act.
Section 22(4): Notice of strike shall be given by such number of persons to such person or
persons in such manner as may be prescribed.
Section 22(5): Notice of lock-out shall be given in such manner as may be prescribed.
Section 22(6): Section 22(6) further provides that the employer needs to send a report of
notices of strikes or lock-outs received or given respectively, to the appropriate authorities
within 5 days. In cases falling under Section 22(3), the intimation needs to be sent the same
day.
2
AIR 1997 SC 585.
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GENERAL PROHIBITION OF STRIKES AND LOCK-OUTS
The prohibition against strikes and lock-out contained in Section 23 is general in nature. It
applies to both public utility as well as non-public utility establishments. A strike in breach
of contract by workmen and lock-out by the employer is prohibited in the following cases:
(i) During the pendency of conciliation proceedings before a Board and seven days
after the conclusion of such proceedings;
(ii) During the pendency of conciliation proceedings before a Labour Court, Tribunal
or National Tribunal, and two months after the conclusion of such proceedings;
(iii) During the pendency of arbitration proceedings before an arbitrator and two
months after the conclusion of such proceedings, where a notification has been
issued under sub-section (3-A) of section 10-A, or
(iv) During any period in which a settlement or award is in operation in respect of the
maters covered by such settlement or award.
The object of these provisions seems to ensure a peaceful atmosphere to enable a
conciliation or adjudication or arbitration proceeding to go on smoothly. This section
because of its general nature of prohibition covers all strikes and lock-outs irrespective of
the subject-matters of dispute pending before the authorities. However, a conciliation
proceeding before a conciliation officer is no bar to a strike or lock-out under this section,
it is only a conciliation proceeding before a Board which is mentioned in this Act.
The provisions of section 23 shall apply to all industrial establishments. Section 23 applies
to both public utility service as well as non-public utility service, while Section 22 applies
to public utility service alone. Section 23 does not prohibit a strike or lock-out during the
pendency of conciliation proceeding before a conciliation officer, Section 22 does so.
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ILLEGAL STRIKES AND LOCK-OUTS
Though the right to strike is not expressly recognized as a legal right under Industrial Disputes
Act, 1947, strikes not resorted to in contravention of the provisions of Section 22 and 23 of the
said Act are considered as legal as enunciated by Section 24 of the said Act.
What constitutes an illegal strike or lock-out?
The section 24 of Industrial Disputes Act 2007 deals with illegal strikes and lockouts and it
provides for situations when a strike or a lockout can be declared to be illegal. The section
provides 3 such situations, these include:
1. A strike or a lockout is illegal if it is declared without prior notice in public utility
services:
According to section- 24(1)(i), A strike would be illegal if it commenced in a public utility
service without a prior notice as is a requirement of section 22 of the act. Similarly, a
lockout is illegal if a notice is not given.
However, a strike which commenced before the expiry of a period of 14 days’ notice, it will be
considered illegal but only for the unexpired notice period and thereafter, the strike would be
legal,3
2. A strike or a lockout is illegal if it is declared during the pendency of any proceedings before
the authorities:
Here, a strike or a lockout becomes illegal if it is in contravention of the provisions contained
in section-23 of the act, all of which have been discussed earlier.
3. A strike or lockout is illegal if it is continued in contravention of an order made under
section 10(3) of the act:
Section 10(3) prohibits strikes while proceedings are ongoing before a labour court or
industrial tribunal. This ensures that workers do not disrupt the legal process aimed at
resolving the dispute. Similarly, in case of lock outs as well, the section explicitly prohibits
employers from declaring a lockout during ongoing proceedings before a labour court or
industrial tribunal. This provision ensures that employers cannot evade legal scrutiny by
locking out workers while disputes are being adjudicated.
Penalties for Illegal Strikes and Lockout
3
Maharashtra General Kamgar Union v. Balkrishna Pen P. Ltd 1989 ILLJ 319 Bom.
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The section-26 to 28 of the act deals with the penalties which can be awarded if there is an
illegal strike of lockout. These penalties broadly include:
1. Penalty for commencing:
Section 26 of the act provides for the penalty for commencing and participating in an illegal
strike or lock out. The section lays down different penalties for workers and employers. It
states that a worker who commences, continues or otherwise acts in furtherance of an illegal
strike, he shall be punishable with:
Imprisonment for a term of 1 month or
Fine which may extend to 50 rupees or
Both.
However, the punishments for employers are a bit harsher. These include an imprisonment
up to one month, or a fine up to 1000 rupees or both.
2. Penalty for instigating:
If a person instigates others to participate in an illegal strike or lock out then such a person
shall be punished as per the provisions of section 27 of the act. The section provides for the
punishment that includes:
Imprisonment up to 6 months or
Fine up to 1000 rupees or
Both.
3. Penalty for giving financial aid:
Section 28 of the act lays down the punishment for giving any kind of financial aid to illegal strikes or lock
out, however, such aid shall be given knowingly and in direct furtherance of the illegal strike or lock out.
The punishment so given may extend to an imprisonment up to 6 months or fine up to 1000 rupees or both
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IS RIGHT TO STRIKE A FUNDAMENTAL RIGHT?
The Constitution of India contains Fundamental Rights in Part III. Article 19 provides
various freedoms, such as Freedom of Speech and Expression under Article 19(1)(a). This
includes the right to express dissatisfaction or the right to criticize. However, the Supreme
Court has in various cases decided that this fundamental right does not include a ‘Right to
Strike’
India Bank Employees' Assn. v. National Industrial Tribunal4 A five-judges bench of the
Supreme Court held that the right to go on strike is not included in the ambit of freedom of
speech and expression which is given under article 19(1)(a) of the Constitution of India. Like
other rights, the freedom of speech is subject to reasonable restrictions under Article 19(2).
Right to form association guaranteed to trade unions under Article 19(1)(c) also does not
contain the right to strike as a part of collective bargaining or otherwise.
In T.K. Rangarajan v. Govt. of Tamil Nadu5the Supreme Court held,
There is no fundamental right to strike, following the decision in the above case.
Under the Tamil Nadu Servants Conduct Rules made under the ID Act, 1947, there
also does not exist any legal or statutory right to go on a strike to the Government
Employees.
There is no moral or equitable justification to go on a strike as it leads to disruption of
businesses as well as administrative and essential services. Also, legitimate modes of
grievance redressal are available.
4
1961 SCC OnLine SC 5
5
(2003) 6 SCC 581.
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IMPACT OF ILLEGAL STRIKE & ILLEGAL LOCK-OUT
1. Wages during illegal strike: The Supreme Court in T. S. Kelawala's case6held that
both legal as well as illegal strike invite deduction of wages. The Supreme Court in
T. S. Kelawala's did not comment upon the workmen's claim for wages during the
period of strike when the strike is both legal and justified as this point
was not raised in that case.
But in a later judgment in Syndicate Bank v. K. Umesh Nayak7, the Supreme Court
considered the question of workmen's claim for wages during the period of strike
which is both legal and justified, and the Supreme Court held that the workmen may
claim wages for the strike period, if the strike is both legal and justified.
2. Trade Union Immunities and illegal strikes: The illegality or unjustifiabilityor
unreasonableness of the strike will not deprive the labour union of its immunities
granted by the Trade Union Act as was clearly held in Rohtas Industries Ltd., v/s
Rohtas Industries Staff Union8.
3. Whether workers are entitled to wages during illegal lock-out: In Krishna
Sugar Mills v/s State of U.P.9, this questioned was discussed. The mill was closed
for two days consequent to the alleged assault of officers by some workmen who
created a panicky situation. The Tribunal held that the closure was lock-out which
was illegal and unjustified and so workers are entitled to wages during the lock-out
period. The matter was agitated before the High Court which held that the lock-out
may be sometimes not at all connected with economic demands; it may be resorted
to as a security measure. In this case such a lock-out was declared without giving
notice as was required and that it was unjustified also being a retaliatory measure.
So the company was liable to pay wages during the lock-out period.
6
Bank of India v. T.S. Kelawala, (1990) 2 LLJ 39 S
7
AIR 1995 SC 319
8
AIR 1976 SC 425
9
Civil Misc. Writ No. 3148 of 1958
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CONCLUSION
Strikes and lockouts play a critical role in shaping industrial relations in India. While the
Industrial Disputes Act, 1947 provides a legal framework for addressing disputes, ongoing
challenges necessitate a continuous dialogue between workers and employers. The rights of
workers to strike must be balanced with the need for employers to maintain productivity and
order.
As the workforce evolves with changes in the economy, it is essential for labour laws to
adapt to these changes. Strengthening the protections for all workers, including those in the gig
economy, is crucial for fostering equitable labour relations. Ultimately, the goal should be to
create an environment where both workers and employers can thrive, ensuring industrial peace
and progress.
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BIBLIOGRAPHY
1. Prof. Meenu Paul, Labour and Industrial Law.
2. Legal Service India. “Strike and Lock-out under Industrial Dispute Act, 1947.”
https://www.legalserviceindia.com/legal/article-12602-strike-and-lock-out-under- industrial-
dispute-act-1947.html
3. iPleaders. “Right to Strike under Industrial Dispute Act, 1947.”
https://blog.ipleaders.in/right-to-strike-under-industrial-dispute-act-1947/
4. iPleaders. “Need to Know: Strikes and Lockouts.” https://blog.ipleaders.in/need-know- strikes-
lockouts/
5. Vibha. “Understanding Strikes and Lockouts.” (PDF) https://thelawbrigade.com/wp-
content/uploads/2020/08/Vibha-V-JLSR.pdf
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