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Lockout vs. Layoff in Labour Law

The document provides definitions and short explanations of key terms related to labour law in India, including unfair labour practices, standing orders, collective bargaining, lock-outs, lay-offs, and the objectives of acts like the Industrial Disputes Act and Trade Unions Act.

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Devayani M
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0% found this document useful (0 votes)
54 views2 pages

Lockout vs. Layoff in Labour Law

The document provides definitions and short explanations of key terms related to labour law in India, including unfair labour practices, standing orders, collective bargaining, lock-outs, lay-offs, and the objectives of acts like the Industrial Disputes Act and Trade Unions Act.

Uploaded by

Devayani M
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

LABOUR LAW QUESTION BANK:-

ONE OR TWO LINES QUESTIONS:-

1. WHAT IS OBJECT OF THE INDUSTRIAL DISUPTES ACT 1947 ?


_ The main aim of the Industrial Disputes Act, 1947 is to maintain a balance between labour and
industry welfare by ensuring industrial peace and harmony. It focuses on the mechanism and
procedure for the investigation and settlement of industrial disputes by conciliation, arbitration and
adjudication which is provided under the statute.

[Link] BETWEEN LOCK OUT AND LAY OUT ?


-
BASIS FOR
LAYOFF LOCK-OUT
COMPARISON
Meaning Lay-off alludes to the involuntary separation of Lock-out, means the refusal of
the employees of a department or unit, by the employer to continue to employ the
employer due to his/her failure to provide workers, despite any intention to close
employment. the unit.
Process It is a process in which the employer refuses to It is a process in which the employer
give employment to the employees for certain voluntarily closes the business, not
specified reasons. because of any specified reasons.
Declaration The employer declares lay-off under specific The employer declares lock-out, as a
circumstances. result of industrial dispute.
Applicability Only to group of workers, that may be workers of To entire establishment and sometimes
a shift, department or unit, depending on the industry.
circumstances.
Business Continues to operate Closed down for the period of lock out.
Result of Trade-reasons. Weapon of collective bargaining.
Compensation Compensation is paid to the laid off workers. In lock out compensation is paid to the
worker as per the type of lock out.

[Link] TERM INDUSTRIAL TRIBUNAL?


- Industrial Disputes Act, 1947 is the Act that regulates the labour laws as it concerns all the workmen
or all the people employed on the Indian mainland. It came into force on 1 April 1947.
“Industrial dispute implies any distinction of conclusion, contest, injury between the business and the
representatives, or between the laborers and bosses, or between the labourers or workers itself which
is all concerned with the work or non-business terms or terms of business dependent on the terms of
state of work of any person.”

4. WHAT IS MEANT BY UNFAIR LABOUR PRACTICE?


- The main concern of labor relations is on the relationships that exist between the employer and the
employee, and the labor practices that arise from the interests of such relationships. Labor relations
can be of both international and domestic firms. All deal with matters such as remuneration, job
security, minimum wages, health and safety, social security, and working time. Therefore, any form of
violation of such laws by employers or unions is termed unfair labor relations.
Unfair Labour Practices
Section 25-T:
Prohibition of unfair labor practice: - No employer or workman or a trade union, whether registered
under the Trade Unions Act, 1926, or not, shall commit any unfair labor practice.
Section 25-U:
Penalty for committing unfair labor practices: - Any person who commits any unfair labor practice shall
be punishable with imprisonment for a term which may extend to six months or with a fine which may
extend to one thousand rupees or with both.
A new schedule V has been added by the Industrial Disputes (Amendment) Act, 1982. In this
Schedule, unfair labor practices have been defined. It contains a list of such practices as are treated
unfairly on the part of the employers or their Trade Unions, or the part of workmen and their Trade
Unions.
[Link] IS MEAN BY STANDING ORDER? MENTION DEFINATION ONLY?
- A standing order in the Indian labour laws provides clear rules and regulations in terms of the
employment. It makes the communication between the employer and employee crystal clear. It covers
all the subjects of employment whether it is regarding leaves, payment of wages or termination.
Under Section 2(g) of the Industrial Employment (Standing Orders) Act,1946 the standing orders are
interpreted as rules relating to matters set out in the Schedule .

[Link] IS OBJECT OF COLLECTIVE BARGAINING?


- The negotiation regarding the employment terms between an employer and its workers is termed
‘Collective Bargaining’. The employer and the representatives of the employees agree to certain
terms and conditions regarding the various terms of employment. The representatives of the
employees belong to certain trade unions. The terms of employment under negotiation in collective
bargaining include employee working conditions, salaries, wages, incentives, compensations,
benefits, working hours, etc. The main objective is to agree with both parties via a written contract in
collective bargaining. According to the International Labour Organization (ILO), collective bargaining
is essential for all employees.

7. WHAT IS PENALTY FOR CLOUSER WITHOUT NOTICE UNDER THE INDUSTRIAL DISPUTE
ACT 1947?
- Penalty for closure. --(1) Any employer who closes down an undertaking without complying with the
provisions of sub-section (1) of section 25-O shall be punishable with imprisonment for a term which
may extend to six months, or with fine which may extend to five thousand rupees, or with both.

[Link] OF TRADE UNION 1926?


- The main objectives of the Act are:
1) To promote both individual and collective welfare
2) to secures the payment of salaries , wages, allowance etc of the workers
3) to secures the employment of the workers
4) to protects the working condition of the workers
5) to secure the opportunities related to the promotion of the workers.
6) to enlarges the training opportunities
7) To assists in collective bargaining to protect the interest of the workers
8) to help the workers in introducing themselves in participatory movement in the different discussion
of the management of the organization
9) To help in providing the educational, recreational & cultural facilities.
10) To identify the different roles and responsibilities of the workers in the industry.

[Link] MANY MEMBERS ARE REQUIRED FOR MAKING APPLICATION OR REGISTRATION OF


TRADE UNION?
- The minimum number of members required to form a trade union is seven persons.

10. WHAT IS TRIPAL TEST LAID DOWN IN THE CASE OF BANGLORE WATER SUPPLY V/S A
RAJAPPA?
- The Bangalore Water Supply case involved a seven-judge Supreme Court panel that defined
“industry.” It introduced the “triple test,” focusing on systematic activity, employer-employee
cooperation and goods/services production for human needs. Philanthropic activities or lack of profit
motive were irrelevant.

[Link] THE DUTIE OF SETTELMENT AUTHORITIES UNDER THE INDUSTRIAL DISPUTES


ACT 1947?
- The conciliation officer shall, for the purpose of bringing about a settlement of the dispute, without
delay, investigate the dispute and all matters affecting the merits and the right settlement thereof and
may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and
amicable settlement of the dispute.

Common questions

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A lay-off refers to the involuntary separation of employees by the employer due to an inability to provide employment, whereas a lock-out involves the employer's voluntary refusal to continue employing workers, usually following an industrial dispute. A lay-off affects only specific groups of workers or departments, and the business continues to operate, whereas in a lock-out, the entire establishment or industry might be closed. Compensation is usually provided in both scenarios, but the reasons and processes differ .

Standing orders provide a clear set of rules and regulations concerning terms of employment, thus clarifying communication between employer and employee. They cover various employment aspects, including leaves, payment of wages, and termination procedures, thereby standardizing expectations and reducing ambiguity in employer-employee relations .

Unfair labor practices constitute violations in the relationships between employers and employees that contravene established labor law principles, including remuneration, job security, minimum wages, health and safety, and working time. Penalties for unfair labor practices, as per Section 25-U of the Industrial Disputes Act, 1947, include imprisonment for a term that may extend to six months, a fine up to one thousand rupees, or both .

Conciliation officers are responsible for investigating the causes of industrial disputes and working towards a fair settlement. They must explore all factors affecting the dispute's merits and use suitable methods to encourage a mutually acceptable resolution, promoting industrial harmony and dispute resolution without delay .

To form a trade union, a minimum requirement of seven members is mandated, ensuring adequate representation and support for the union's establishment .

The Trade Union Act of 1926 aims to promote both individual and collective welfare, secure employment, ensure timely payment of salaries and wages, protect working conditions, enlarge training opportunities, assist in collective bargaining, facilitate participatory management discussions, and provide educational and recreational facilities. It seeks to identify the roles and responsibilities of workers, thus protecting their interests comprehensively .

The Triple Test from the Bangalore Water Supply vs. A Rajappa case defines 'industry' based on three key criteria: systematic activity, cooperation between employer and employee, and production of goods/services for human needs. This definition emphasized that philanthropic motivations or the absence of a profit motive are irrelevant, broadening the scope of what activities can be classified as industries under Indian law .

An employer who closes down an undertaking without adhering to the closure notice requirements under Section 25-O of the Industrial Disputes Act, 1947, may face imprisonment for up to six months, a fine up to five thousand rupees, or both, emphasizing the legal obligation to provide notice .

Collective bargaining involves negotiations regarding employment terms between an employer and workers, typically represented by trade unions. Its objectives include reaching agreements on work conditions, salaries, incentives, compensation, and working hours, thereby ensuring mutual agreement through a written contract. It is considered essential by the International Labour Organization (ILO) for equitable employee treatment .

The primary objective of the Industrial Disputes Act, 1947, is to maintain a balance between labor and industry welfare by ensuring industrial peace and harmony. This is achieved by providing mechanisms and procedures for the investigation and settlement of industrial disputes through conciliation, arbitration, and adjudication .

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