Test: Strike and Lock-Out - 1 - CLAT PG MCQ

An employee can claim lay-off compensation if they have completed at least one year of continuous service with the employer and their name is on the muster roll. This ensures that only workers with a stable employment record are eligible for compensation during a lay-off, providing a safety net during unexpected job disruptions.

A strike is fundamentally defined as the cessation of work by a group of workers acting together. This collective action is essential for a strike to be recognized legally. It emphasizes the importance of plurality and concerted effort among workers to express grievances or negotiate better terms. An interesting fact is that the concept of strikes has evolved significantly from its origins in the 12th century B.C. in Egypt to modern labor movements advocating for workers' rights globally.

Participation in a union negotiation does not make a worker ineligible for lay-off compensation. However, refusing alternative employment, failing to report for work, or being involved in a strike that affects production can disqualify a worker from receiving compensation. This highlights the importance of understanding the conditions under which compensation rights can be affected.

The compensation rate for retrenched employees is set at 15 days' average pay for each completed year of continuous service. This provision ensures that employees receive fair financial support as they transition out of employment.

Retrenchment is defined as the termination of a workman's service by the employer for any reason other than disciplinary action, highlighting its involuntary nature. This ensures that the process primarily affects surplus staff and is not tied to the performance or conduct of the employee.

Section 25-H mandates that employers give preference to retrenched workmen when hiring new employees. This provision underscores the importance of protecting the rights of those who have lost their jobs through retrenchment, promoting fairness in future employment opportunities.

The key distinction is that in a lay-off, the employer is liable to pay compensation to the affected employees, whereas in a lock-out, which is a temporary closure of the business by the employer, there is no such liability if the lock-out is justified. This reflects the different legal implications and responsibilities associated with each situation.

The notice requirement under Section 25-F(c) serves as a directory notice; it is not mandatory for validating retrenchment but is intended to inform the government about employment conditions. This helps the government monitor labor practices in various industries.

A "Go-Slow" strike involves workers deliberately reducing their pace of work, which aims to disrupt production without outright refusal to work. Although it may not be legally classified as a strike under the Industrial Disputes Act, it still serves as a form of protest. This tactic can be particularly insidious, as it subtly undermines productivity while still maintaining the appearance of compliance.

A 'badli workman' is a substitute worker who replaces another worker, but their name is not on the muster roll. Importantly, once a badli workman completes one year of continuous service, they are entitled to rights equivalent to regular workers, including eligibility for lay-off compensation. This classification emphasizes the rights of substitute workers in labor relations.

Employers in industries covered by Chapter V-B must seek permission for a lay-off unless it is due to natural calamities or specific emergencies. This requirement ensures that employers cannot arbitrarily lay off workers without oversight, thereby protecting worker rights and promoting fair labor practices.

Lay-off compensation can be claimed for a maximum period of 45 days within any 12-month period. This regulation helps to limit the financial obligation of employers while ensuring that employees receive support during temporary unemployment. If the lay-off extends beyond this period, different compensation rules come into play.

Before initiating a lock-out in a public utility service, the employer is required to provide a notice six weeks in advance. This requirement allows for potential negotiations and attempts at resolution before resorting to lock-out, which helps protect public interests and maintain order in essential services. This provision underscores the importance of communication and negotiation in labor relations.

Termination due to disciplinary action is explicitly excluded from the definition of retrenchment. This distinction is crucial, as retrenchment focuses on economic or organizational needs rather than employee conduct.

Lay-offs may occur due to natural disasters or shortages of materials, which are factors beyond an employer's control. This is different from performance issues or voluntary resignations, which do not typically fall under lay-off circumstances. Recognizing such causes helps in understanding workers' rights regarding compensation during layoffs.

A lay-off is defined as the temporary inability of an employer to provide employment to workers due to factors such as shortages of resources or machinery breakdowns. Unlike retrenchment, which involves permanent termination of employment, a lay-off indicates that the employee may return to work once the situation improves. Understanding this distinction is crucial for both employees and employers in navigating labor relations.

Termination of a casual worker's service upon completion of specific urgent work does not constitute retrenchment. The nature of casual employment means that these workers are engaged for specific tasks and their contracts automatically end when the work is completed.

A strike is deemed illegal if it occurs during conciliation proceedings, as outlined in Section 23 of the Industrial Disputes Act. This provision is designed to ensure that disputes are resolved through proper channels before escalating to strikes, thereby promoting industrial peace. The legality of a strike is crucial because, if deemed illegal, participants may face disciplinary actions and loss of wages.

A lock-out is defined as the closing of a place of employment by an employer, effectively preventing workers from performing their jobs. This action is typically employed as a measure of coercion during industrial disputes, contrasting with strikes, which are initiated by workers. Lock-outs signify the employer's use of power in labor relations, often leading to intensified conflicts and negotiations between management and labor unions.

If an employer retrenches an employee without adhering to the 'last come, first go' principle, the retrenchment is considered invalid unless there are valid and justifiable reasons. This protects workers from arbitrary decision-making and promotes fairness in employment practices.

Section 25 prohibits any person from knowingly providing financial aid to illegal strikes and lock-outs. This regulation aims to deter support for actions that violate labor laws and to maintain order in industrial relations. The rationale behind this provision is to ensure that all parties adhere to legal frameworks governing labor disputes, thereby promoting fair practices and accountability.

To qualify for lay-off compensation, a worker must have completed at least one year of continuous service with the same employer. Continuous service is defined by both the duration of employment and the number of days worked, ensuring that workers have a stable employment history before receiving compensation.

A mandatory requirement for valid retrenchment is that the employer must provide one month's notice with reasons or wages in lieu of notice. This ensures that employees are given fair warning and compensation for their impending job loss, fostering a more humane approach to termination.

In public utility services, a key requirement for initiating a strike is that a notice must be given at least six weeks prior to the intended strike date. This regulation aims to allow for negotiation and to minimize disruption in essential services. The importance of this provision lies in maintaining industrial harmony and ensuring that public interests are not adversely affected by sudden labor actions.

Section 25-G establishes the "last come, first go" principle, which means that the most recently hired employees should be the first to be retrenched. This principle aims to provide a fair approach to layoffs and protect the interests of longer-serving employees.