Post Graduate Programme in Human

Resource Management (PGPHRM)

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EMPLOYMENT LAW I
(EL I)
Prof. Parul Gupta
PhD (Faculty of Law-JMI, New Delhi), LL.M., PGDBM

Dr. Parul Gupta

SESSION 15
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Strikes & Lockouts

Chapter IV of IDA
Treatment of strike and lockouts

provided by the Act

Dr. Parul Gupta

Strike (Section 2(q))

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Strike means a cessation of work by a body of persons

employed in any industry acting in combination or a
concerted refusal under a common understanding of
any number of persons who are or have been so
employed, to continue to work or to accept
employment.
Main Features of Strike

Strike is the stoppage of work by a body of workmen acting in

concert with a view to bring pressure upon the employer to
concede to their demands.
The workmen must be employed in any industry.
Mere cessation of work does not come within the preview of
strike, unless it can be shown that such cessation of work was a
concerted action for the enforcement of an industrial demand.

Dr. Parul Gupta

Lockout (Section 2(l))

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The temporary 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.
The Supreme Court defines Lockout as the
antithesis of strike. Just as a strike is a
weapon in the hands of the workers for
enforcing their industrial demands, lockout is
a weapon available to the employer to force
the employees to see his points of view and to
accept his demands.
Dr. Parul Gupta

Prohibition of Strikes and Lock-outs

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(Sections 22 to 23)

Procedure of strikes in a public utility service

(Section 22(1))

No worker employed in a public utility service can go on strike in

breach of contract;
without giving to the employer notice of strike, within six
weeks before striking; or
within fourteen days of giving such notice; or
before the expiry of the date of strike specified in any such
notice as aforesaid; or
during the pendency of any conciliation proceedings before
a conciliation officer and seven days after the conclusion of
such proceedings.

a notice for strike remains valid only for six

weeks.

Dr. Parul Gupta

Prohibition of Strikes and Lock-outs

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Notice of lockout or strike not necessary
(section 22(3))
a. Where there is already in existence a strike or, as

the case may be, lock-out in the public utility

service.
b. But

in such cases, the employer must send

intimation of such lock-out or strike on the day on
which it is declared, to such authority as may be
specified by the appropriate government either
generally or for a particular area or for a particular
class of public utility services.

Dr. Parul Gupta

Prohibition of Strikes and Lock-outs

7 (Sections 22 to 23)
Intimation of notice of lockout or strike
(Section 22(6))
If on any day an employer receives from any

person employed by him any notice of strike

or gives any notice of lockout to his
workmen, he must within five days thereof
report to the appropriate government or to
such authority as prescribed by that
government, the number of such notices
received or given on that day.
Dr. Parul Gupta

Notice of Lockout or Strike

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Case 15.1: L D Sugar Mills v R S

Lakshmi Devi Sugar Mills Ltd vs Pt. Ram
Sarup

Discussion Point
Were the company was guilty of violating the
provisions of Section 22 of the Act and
permission was required before taking an
action against the workmen went on strike?
Dr. Parul Gupta

Notice of Lockout or Strike

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Judgment
the company did not violate the provisions of
Section 22 of the Act.
Since the workmen had resorted to an illegal strike from 7
a.m. on May 27, 1952, and a fair enquiry into the alleged
misconduct and insubordination of the workmen had
been held by the management without violating any
principles of natural justice. After the enquiry, the
management came to the bona fide conclusion that
continuing the workmen in its employ was detrimental to
discipline and dangerous in the interests of the appellant .
Dr. Parul Gupta

General Prohibition of Strike, and

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Lockouts
(Section 23)
During the pendency of conciliation proceedings before
a Board and seven days after the conclusion of such
proceedings;
b. During the pendency of proceedings before a Labour
Court, Tribunal or National Tribunal and two months
after the conclusion of such proceedings;
c. 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 (3A) of section l0A; or
d. During the period of operation of a Settlement or Award
in respect of any of the matters covered by the
Settlement or Award
a.

Dr. Parul Gupta

General Prohibition of Strike, and

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Lockouts
(Section 23)

Case 15.2: C F I Ltd. v B

Chemicals & Fibres Of India Ltd vs
D. G. Bhoir & others
Discussion Point
Was Section 23 of the Industrial
Disputes Act applicable in the above
case?
Dr. Parul Gupta

General Prohibition of Strike, and

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Lockouts
(Section 23)
Judgment
The provisions of the Industrial Disputes Act clearly
brings out the elaborate nature of the proceedings
relating to conciliation, arbitration, settlement,
inquiry and award. The intention behind all these
provisions is to avoid strikes and lock-outs as
far as possible not only by bringing the parties
together but also by referring points of dispute
between them, either voluntarily or otherwise for
decision by Labour Courts, Tribunals and
National Tribunals.
Dr. Parul Gupta

General Prohibition of Strike, and

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Lockouts
(Section 23)

Take away
The provisions of Section 23(b) would apply

if the single workman's cause has been

espoused by a labour union which need not
necessarily comprise of all the employees of
the concerned employer.
There cannot be a strike or lock-out even in
relation to matters other than those which
are pending before the Labour Court,
Tribunal or National Tribunal.
Dr. Parul Gupta

Illegal Strikes and Lock Outs

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(Section 24)
a strike or a lockout will be declared illegal if ;
i. it is commenced or declared in contravention

of section 22 or section 23; or

ii.it is continued in contravention of an order
made under sub-section (3) of section 10 or
sub-section (4A) of Section 10A.

Dr. Parul Gupta

Illegal Strikes and Lock Outs

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(Section 24)

Case 15.3: B & C Ltd. V Workers

Buckingham And Carnatic Co. Ltd v. Workers Of The

Buckingham

Discussion Points
1. Did the stoppage of the work fall within the definition
of a "strike" in s. 2 (q) of the Industrial Disputes Act,
1947 and the strike was an illegal strike?
2. Were the workers entitled to claim holidays with pay
under S. 49-B (1) of the Indian Factories Act, 1934?

Dr. Parul Gupta

Illegal Strikes and Lock Outs

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(Section 24)
Judgment
1. The stoppage of the work fell within the definition of

a "strike" in s. 2 (q) of the Industrial Disputes Act,

1947 and the strike was an illegal strike as the textile
mills was a public utility industry and no notice had
been given to the management, even though the
refusal to work continued only for a few hours.
2. It was further stated by the court that since the
continuity of service of the workers was interrupted
by that illegal strike, hence were not entitled to claim
holidays with pay under S. 49-B (1) of the Indian
Factories Act, 1934.
Dr. Parul Gupta

Prohibition of Financial Aid to Illegal

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Strikes and Lockouts
(Section 25)
No person must knowingly spend or apply

any money in direct furtherance or support

of any illegal strike or lock-out. Thus this
Section has following two ingredients;
i. spending or applying money;
ii.money spent or applied in direct furtherance

or support of an illegal strike.

Dr. Parul Gupta

Penalties Concerning Strike and

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Lockout
Penalty for illegal strikes (Section 26(1))
Penalty for illegal lockouts (Section 26(2))
Penalty for instigation (Section 27)
Penalty for giving financial aid to illegal

strikes and lockouts (Section 28)

Dr. Parul Gupta

GROUP ASSIGNMENT
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NEXT SESSION

GROUP NINE
CASE 16.3: H STEELS Ltd. V
P O LABOUR
Case Analysis Report
Submission Due Session 17
Dr. Parul Gupta

NEXT SESSION
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SESSION 16
Lay off & Retrenchment Chapter V A & V B of IDA
Provisions for lay-off and
retrenchment as provided by
the Act
Dr. Parul Gupta

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Dr. Parul Gupta