Industrial relations are an important part of business management, and issues like strike and lockout, the difference between lockout and strike, and compliance with Section 25F of Industrial Dispute Act often come into play when dealing with workforce challenges. For employers and management, it is important to understand these concepts in clear terms so that disputes can be handled legally and strategically.
What is a Strike?
A strike happens when employees collectively refuse to work as a way to pressure the employer for demands such as wages, working conditions, or other benefits. From a management perspective, strikes can disrupt production, negatively impact profitability, and even harm a company’s market reputation. Employers must develop preventive policies and negotiation strategies to minimise the likelihood of strikes within their organisation.
What is a Lockout?
A lockout is an action taken by the employer that prevents workers from entering the workplace. This is typically done when negotiations fail, and the employer needs to protect its business interests or bring employees to the negotiating table. For employers, lockouts can be a strong tool to maintain control, but they must always follow legal procedures to avoid penalties.
Difference between Lockout and Strike
The difference between lockout and strike lies in who initiates the action. Employees initiate a strike, while the employer responds with a lockout. In a strike, employers face the risk of production loss due to absent workers, whereas in a lockout, management deliberately stops operations to protect organisational interests or force resolution.
Section 25F of Industrial Dispute Act
Employers must pay close attention to Section 25F of Industrial Dispute Act, which outlines the conditions for the retrenchment of workers. According to this section, before retrenching a workman who has been employed for more than one year, the employer must provide:
- One month’s written notice or wages in place of notice.
- Retrenchment compensation equal to 15 days’ average pay for every completed year of service.
- Notice to the appropriate government authority.
Non-compliance with Section 25F can result in legal consequences and complications during dispute resolution.
Final Thoughts for Employers
For top-level management, understanding strike, lockout, and legal provisions like Section 25F is not just about compliance, it is about protecting business continuity and maintaining control over operations. Employers should proactively develop industrial relations policies, legal strategies, and negotiation frameworks to ensure their organisations remain stable and productive even during disputes.
