Industrial Dispute, can be defined as the conflict between employer and employee, that is a result of a disagreement in their industrial relation, which is due to a clash of interest, resulting in dissatisfaction, for either of the parties concerned. Such disputes may take different forms like a strike, lock-out, dismissal of workers, protests etc. Lock-out is a situation, wherein there is a provisional closure of the place of employment, as a result of strike executed by trade unions or due to certain political reasons.
Conversely, layoff implies a temporary situation, wherein the employer fails to give employment to a group of workers, due to lack of resources.
In Lock-out the business is shut down temporarily, while this is not the case with the lay-off. In this article excerpt, you can find all the substantial differences between lay-off and lock-out.
Content: Layoff Vs Lock-out
|Basis for Comparison||Layoff||Lock-out|
|Meaning||Lay-off alludes to the involuntary separation of the employees of a department or unit, by the employer due to his/her failure to provide employment.||Lock-out, means the refusal of employer to continue to employ the workers, despite any intention to close the unit.|
|Process||It is a process in which the employer refuses to give employment to the employees for certain specified reasons.||It is a process in which the employer voluntarily closes the business, not because of any specified reasons.|
|Declaration||The employer declares lay-off under specific circumstances.||The employer declares lock-out, as a result of industrial dispute.|
|Applicability||Only to group of workers, that may be workers of a shift, department or unit, depending on the circumstances.||To entire establishment and sometimes industry.|
|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.|
Definition of Layoff
The layoff may be defined as the provisional separation of the employees at the will of the employer, because of his/her inability to give employment to the employee whose name is entered on the muster rolls, of the establishment and is not retrenched. It can be caused due to a shortage of resources such as coal, power or raw material, economic slowdown machinery breakdown, accumulation of stock and so on.
Lay-off lasts for a particular period, which when ends up, the employee will be recalled by the employer to join the office or factory at the same job and position. However, the period may extend to any length of time. The employee provided with adequate compensation by the employer, because, layoff takes place at the instance of the employer.
Definition of Lock-out
Lock-out can be understood as the exclusion of workers from the place of work by the employer, that lasts till certain terms are agreed upon by both the employer and employee. In this situation, the employer withholds work by refusing to put employees at work and restricts employees access to the workplace, without any intention to close down the division or unit. In this, the employees are prohibited from entering the company premises, which is caused by internal and external disturbances.
Basically, a lock-out is nothing but a management’s strike during a labor dispute, in which the workers are compelled to settle down on the terms that are favorable to the management. It is announced by the management as a result of clashes between management and workers, because of unjustified demands by the workers or bad treatment of workers by the management.
Key Differences Between Layoff and Lock-out
The points presented below explain the differences between lay-off and lock-out:
- The situation in which the employer fails or refuses to provide employment to a group of employees that lasts for a specified term is known as a layoff. Lock-out connotes a provisional shutdown of the enterprise by the employer, which is caused by the management’s failure, as a result of the internal or external disruption.
- The layoff is a process in which the employer refuses to give employment to the employees for certain specified reasons. On the other hand, the lock-out is in which the employer voluntarily shuts the business, because of conflicts between workers and management.
- Lay-off is applicable to a group of workers, that may be workers of a shift, department or unit, depending on the circumstances. Conversely, lock-out to the whole establishment and sometimes industry.
- In lay-off, the business continues to operate, whereas in lock-out the business closed down for a particular period.
- Lay-off can occur due to trade reasons such as lack of resources, economic downturn, machinery breakdown etc. On the other hand, lock-out can occur as a result of a strike conducted by employees, to compel an employer to agree with the unjustified demands or change the unfair labor practices.
- When it comes to compensation, in lay-off the compensation is provided to the workers laid-off, while in the case of lockout, no such compensation is provided.
Both layoff and lock-out are a temporary separation of employees, at the instance of the employer, wherein there is no termination of the contract of employment rather it is terminated for the time being.
By far, both the situation discussed above are not good for a company as it causes harm to the reputation and goodwill. Lock-out is caused by differences reasons such as wages, political interference, unfair labor practices, economic slowdown and so on. On the other side, lay off can be caused by trade reasons.