EXPLAIN RETRENCHMENT , LAYOFF , STRIKE AND LOCKOUT

EXPLAIN RETRENCHMENT , LAYOFF , STRIKE AND LOCKOUT

Author: Ashwini Chouhan

College name: Banasthali Vidyapith

INTRODUCTION

Retrenchment , layoff ,strike and lockout are discussed under industrial dispute act 1947 . According to INDUSTRIAL DISPUTE ACT 1947, section 2(K) Defines industrial dispute as dispute or difference between employers is connected with the employment terms condition of lab our of any person in the workplace. Industrial dispute arise out of many economical and non economical causes and they are a part of organizational life the economic causes are listed below:-

Compensation of job , Leave , remuneration, working hours , bonus , unjust layoffs , unpaid holidays and retrenchments. Ill treatment by staff workers , indiscipline, political factors, victimization of workers , sympathetic are some of the non economic causes. Political interference unfair labour practices multiple labour laws union rivalry economic slowdown are some of the major causes. Production is lost as a consequence of these factors also income of the workers is harmed many workers lose their jobs. This may also cause inflation and increase in cost of living.

TYPES OF INDUSTRIAL DISPUTES

1. Strikes

2. Lockouts,

3. Lay Off,

4. Retrenchment and

5. Boycott

In this article we will discuss about retrenchment, layoff , strike and lockout .

RETRENCHMENT

It means if any employer discharges or removes any workman or staff member on the ground of surplus labour or staff , but not as disciplinary action it is called retrenchment.

Above mention definition is very simple explanation of the term retrenchment , lets discuss about legal definition of retrenchment .

In section 2( oo ) of the industrial dispute act 1947, retrenchment is defined as an exhaustive and comprehensive act the worker cannot be terminated by the employer as a punishment of indiscipline and he cannot be terminated following the conditions given below:-

(a) In case of voluntary retirement.

(b) At the age of superannuation and stipulation of contract between employer and work man

(c) If worker is terminated because of non renewal of the contract of employment between both parties . In concern of expiration of contract

(d) if a worker is terminated because of prolonged Ill health.

Requirements of valid retrenchment

Section 25 (f) and (n) of industrial dispute act deals with the provisions of valid retrenchment

Any workman working or worked in any industry who has been working in that industry for a period of not less than a year under an employer shall not be terminated by that employer until

(a) The employee or the worker has been provided with one month prior notice in writing which clearly states the reason for termination and the period of notice has expired , or the workman has been paid in preference to such notice , wages for the notice period .

(b) At the time of retrenchment the worker had been paid reimbursement which must be equal to the average pay of every completed year of the continuous services.

(c) Notice is provided in the prescribed manner and is served on the appropriate government as specified by the government by notification in their official gazette

(d) If there is an existing agreement between the parties which specify a date of termination of service, no subsequent notice is necessary in such case .

(e) Notice should be served by the appropriate government as per the provisions of rule 76 of industrial dispute act

CASE LAW

The Bombay High Court , in State Bank Of India vs. N. Sundaramony on 24 March 1975

Equivalent citations (1975) ILLJ 453 Mad .

Held that wherein the court held that an analysis of the definition reveals four essential ingredients , namely

1) There must be termination of the service of a workman .

2) The termination must be by the employer ,

3) For any reason whatsoever, and

4) Otherwise than as by way of disciplinary action

LAY-OFF

The term ‘lay-off’ has been defined under section 2 (kkk) of the Industrial Disputes Act, 1947, thus lay-off means the failure, denial or powerlessness of an employer because of the scarcity of coal, raw materials or power or the inflection of stocks or the malfunction of machinery or natural calamity .

Lay- off means the failure , refusal or inability of the employer

Lay- off is a measure to cope with the provisional powerlessness of an employer to offer employment to a workman to keep the establishment on going . It leads to temporary unemployment . employer – employee relationship does not ends here , nor does it involves any alterations in terms of services.

ESSENTIAL CONDITIONS

Before a workman may claim lay off compensation , he must fulfil some conditions like

1. He should have worked for not less than one year of continuous service [ as defined in section 25 B ]

2. The workman must not be a badli (a workman employed in the place of another workman) or a casual worker.

If these requirements are fulfilled a employed shall be paid compensation for all days during which he is laid off except for such weekly holidays . Half of the amount of total of basic wages is payable to the workman as a compensation to his work.

STRIKE

Section 2 (q) of the industrial disputes Act 1947 defines the term strike as-

1) Cessation of work by a body of person employed in any industry acting in combination; or

2) A jointly planned denial of a group of person who are or have been employed in any industry to continue to work or to accept employment ; or

3) A denial under a mutual understanding of any group of person who are or have been employed in industry to continue to work .

The ingredients of a strike as laid down in this section are –

(a) cessation of work,

(b) plurality of workmen who should cease to work or stop working, (c) refusal should be by a concerted action or mutual understanding,

(d) denial of work must be from the person who are employed in that particular industry.

CASE LAWS

Northbrook Jute Co. Ltd. V. Their workmen (1960, I LLJ580 SC)

In this case , the court held that when workers are not bounded to do particular jobs , denies to do that job or assigned work does not amount to strike , despite the fact that their refusal is jointly planned or under a mutual understanding.

LOCKOUT

As per section 2(1) of the I.D. Act, 1947, lock­out means the

“closing of a workplace or the adjournment of assigned work,

or the denial of a employer to continue to employ any group persons employed by him”.

Thus lock-out is the opposite part of strike in simple words it advocate employers because by the use of this weapon the employer combat demands of the workers.

CASE LAWS

Shri Ramchandra Spinning Mills v. State of Madras and Anr. (1957) ILLJ90 MAD

It was observed that if the employer shuts down his place of business as a means of retaliation or as an instrument of constrain or as a method of exerting pressure on employees or in simple words when his act is what may be called an act of pugnacious there will be a lock out .