7 Most Important Differences between Lock-Out and Lay-Off are as follows:
Lock-out:
1. Section 2(l) defines “Lock-out”.
2. Lock-out means the temporary closing of a place of employment.
3. In Lock-out, the establishment is completely closed.
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ADVERTISEMENTS:
4. Generally, the causes of lock-out lie political, disturbances with trade union leaders, rigid policies of management, etc., besides economic problems.
5. Payment of compensation to workers depends upon various factors viz. legal or illegal lock-outs, justified or unjustified.
6. Generally, lock-out is declared by employer in answer to strike.
7. Lock-out is applicable to entire industry
ADVERTISEMENTS:
or to entire department of that industry.
Lay-Off:
1. Sec. 2 (kkk) defines “Lay-off”.
2. Lay-off means the failure, refusal or inability of an employer on account of shortage of raw materials, shortage of power, excess of finished goods, no market demand for finished products etc.
3. Lay-off occurs while the establishment is continuing operation.
ADVERTISEMENTS:
4. In lay-off, the employer is unable to provide employment to one or more workmen due to several reasons generally genuine and owe to economic factors, viz. shortage of coal, raw materials, excess production, shortage of electricity, break-down of machinery, Government policy, no-demand of the finished products in the market, shortage of finance, shortage of space in the storage, etc.
5. Compensation shall be paid to the workers laid-off.
6. Generally, employer declares lay-off under certain genuine circumstances.
7. Lay-off may be applicable to a group of workers or to entire workers, or to the workers to one shift, or some shifts, under certain circumstances.