33 Strikes and Lockouts
This chapter takes up the two best-known forms of industrial action — strikes (workers stop work) and lockouts (employers close the workplace). Both are statutorily defined, both are regulated by an interconnected set of conditions, and both carry serious legal and economic consequences when used outside the regulatory frame.
33.1 Strikes
33.1.1 Statutory Definition — Section 2(q)
The Industrial Disputes Act, 1947 defines strike in Section 2(q):
“Strike means a cessation of work by a body of persons employed in any industry acting in combination, or a concerted refusal, or a 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.”
The IR Code, 2020 retains the substance of the definition with a notable extension: “and includes the concerted casual leave on a given day by fifty per cent or more workers employed in an industry” — an explicit response to the mass casual leave tactic that had been used to circumvent the strike-notice requirement.
33.1.2 Essential Elements
| Element | What it requires |
|---|---|
| Cessation or refusal of work | Either stop working, refuse to continue, or refuse to accept employment |
| By a body of persons | A group, not an individual |
| Acting in combination or common understanding | Concerted action, not coincidence |
| Employed in an industry | Within the meaning of the ID Act |
A single worker stopping work is not a strike — it is absence; the combination element is constitutive.
33.1.3 Types of Strikes
| Type | What workers do |
|---|---|
| General strike | Workers across industries or units strike together — typically political |
| Token strike | Short, symbolic stoppage — a few hours to one day — to register protest |
| Sympathetic strike | Workers strike in support of another union or workforce |
| Wildcat strike | Strike without prior notice and often without union sanction |
| Lightning strike | Sudden strike with no warning |
| Stay-in / Sit-down strike | Workers occupy the premises but do not work |
| Tool-down / Pen-down strike | Stop work but remain at workstations |
| Slow-down (go-slow) | Continue work at deliberately reduced pace |
| Work-to-rule | Strict adherence to every rule, slowing output |
| Hunger strike | Symbolic abstention from food, often by union leaders |
| Gherao | Surrounding the manager so she cannot leave — distinctive Indian form |
| Bandh | Mass shutdown across a region, often political |
| Mass casual leave | Coordinated absence as informal strike — now expressly covered by §2(q) under IR Code |
The legal status varies by type. Wildcat, gherao and bandh are routinely found illegal; token and general strikes are legal if they meet the notice and cooling-off requirements.
33.1.4 The Right to Strike — A Constitutional Note
The Supreme Court has held that the right to strike is not a fundamental right under the Constitution.
| Source | Position |
|---|---|
| Article 19(1)(c) | Guarantees the right to form associations or unions, but not the right to strike |
| Article 19(4) | Permits reasonable restrictions in the interest of sovereignty, integrity, public order or morality |
| AIBEA v. National Industrial Tribunal (1962) | Right to strike is not part of Article 19(1)(c) |
| T.K. Rangarajan v. Government of Tamil Nadu (2003) | Government employees have no fundamental, statutory, moral or equitable right to strike |
| ID Act / IR Code | Statutory protection for legal strikes; statutory penalties for illegal strikes |
The right to strike is, therefore, a statutory right, regulated by the ID Act / IR Code, not a constitutional right.
33.1.5 Conditions for a Legal Strike
For a strike to be legal, it must comply with the notice requirements (§22, §23) and avoid the prohibition periods.
Public-Utility Services — Section 22
In a public-utility service — railways, posts, water, electricity, hospitals, sanitation, telephones, defence, and any other service the appropriate government declares — workers must give:
- Notice of strike in the prescribed form;
- Not earlier than 6 weeks before strike date;
- Not within 14 days of giving the notice;
- Not before the expiry of any date specified in the notice;
- Not during the pendency of any conciliation or seven days after its conclusion.
Industrial Establishments under the IR Code
The IR Code, 2020 extends the 14-day notice requirement to all industrial establishments — not only public utilities. Workers in any establishment must give 14 days’ strike notice; the strike cannot begin within 60 days of any conciliation, court or tribunal proceeding being concluded.
| Setting | Notice requirement |
|---|---|
| Public-utility service (ID Act §22) | 6 weeks’ notice; strike not within 14 days of notice; not during pendency of conciliation; 7 days after conclusion |
| Industrial establishment (IR Code §62) | 14 days’ notice; same prohibition during pendency and after conclusion |
| Award currently in operation | Strike for matters covered by the award is restricted |
General Prohibitions — Section 23
Section 23 (carried into the IR Code) prohibits strikes:
- During the pendency of conciliation proceedings before a Board, and 7 days after the conclusion of such proceedings;
- During the pendency of proceedings before a Labour Court, Tribunal or National Tribunal, and 2 months after the conclusion of such proceedings;
- During the pendency of arbitration proceedings, and 2 months after the conclusion;
- During the period when a settlement or award is in operation, in respect of any matter covered by the settlement or award.
33.1.6 Illegal Strikes — Section 24
A strike is illegal if it is commenced or continued in contravention of Section 22 or 23, or in contravention of an order issued under §10(3) referring the dispute to adjudication. The Code retains these prohibitions.
Consequences of an Illegal Strike
| Consequence | Provision |
|---|---|
| Penalty for participating workers | Imprisonment up to one month or fine, or both — §26(1) |
| Penalty for instigating | Imprisonment up to six months or fine, or both — §27 |
| Loss of wages for the strike period | “No work, no pay” — Bank of India v. T.S. Kelawala (1990) |
| Disciplinary action | Subject to natural justice |
| Loss of immunity under Trade Unions Act §18 | Civil immunity does not protect illegal acts |
The Supreme Court has consistently held that participation in an illegal strike does not automatically justify dismissal — the principles of natural justice apply, and the punishment must be proportionate.
33.1.7 Sit-Down, Pen-Down and Tool-Down Strikes
These three forms involve workers being present at the workplace but not working. They are strikes within Section 2(q) — there is a cessation of work and a combination — and they are subject to the same notice and cooling-off requirements as conventional strikes.
33.1.8 Gherao — A Distinctive Indian Form
A gherao — surrounding a manager and physically preventing her from leaving — is not a recognised strike form. The Calcutta High Court in Jay Engineering Works v. State of West Bengal (1968) held that gherao is an act of wrongful confinement and amounts to a criminal offence. Workers participating in a gherao expose themselves to both disciplinary action and criminal prosecution.
33.2 Lockouts
33.2.1 Statutory Definition — Section 2(l)
The ID Act defines lockout in Section 2(l):
“Lockout means 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.”
Three elements pin the definition: a temporary (not permanent) action, initiated by the employer (not the workers), in response to or in anticipation of an industrial dispute.
33.2.2 Strike vs Lockout
| Dimension | Strike | Lockout |
|---|---|---|
| Initiator | Workers | Employer |
| Action | Cessation of work | Closing the workplace; refusal to employ |
| Counterpart legal regime | §22, §23 — notice and cooling-off | §22, §23 — same notice and cooling-off (mirror image) |
| Legal status | Legal if notice / period requirements met | Legal if notice / period requirements met |
| Penalty for illegal version | §26(1) workers; §27 instigators | §26(2) employer |
The mirror-image structure is deliberate. The Act treats strike and lockout as the labour and capital sides of the same coin and applies symmetrical regulation.
33.2.3 Lockout vs Lay-off, Retrenchment, Closure
Indian labour law distinguishes four ways an employer can stop providing work to workers. The distinctions matter because the legal consequences and compensation are different in each.
| Concept | Definition / cause | Status of employment | Compensation |
|---|---|---|---|
| Lockout | Temporary closure as a counter to an industrial dispute | Continues; workers not employed for the period | None statutorily; subject to settlement |
| Lay-off (§2(kkk)) | Inability of the employer to give employment due to shortage of coal, power, raw material, accumulation of stocks, breakdown of machinery, natural calamity, etc. | Continues | 50% of basic wages and DA for the lay-off period — §25C |
| Retrenchment (§2(oo)) | Termination of service of a worker by the employer for any reason whatsoever — other than punishment for misconduct, voluntary retirement, superannuation, illness or non-renewal of fixed-term contract | Ends | One month’s notice or pay in lieu, plus 15 days’ wages per completed year of service — §25F |
| Closure (§2(cc)) | Permanent closing down of the place of employment or part of it | Ends | Notice to government plus retrenchment-style compensation — §25FFA, §25-O |
Lockout is temporary and dispute-driven; lay-off and retrenchment are for cause (or no cause); closure is permanent.
33.2.4 Conditions for a Legal Lockout
The conditions for a legal lockout mirror those for a legal strike. In a public-utility service, the employer must give 14 days’ notice (within a six-week window) and observe the cooling-off periods. In other establishments under the IR Code, the 14-day notice now applies. The §23 general prohibitions apply equally — no lockout during pendency of conciliation, court or tribunal proceedings, or while a settlement or award is in operation on the same matter.
33.2.5 Illegal Lockouts — Section 24
A lockout in contravention of §22 or §23 is illegal under §24. Penalties:
- The employer is liable to imprisonment up to one month or fine, or both — §26(2).
- Workers laid out are entitled to wages for the period of illegal lockout.
33.3 Lay-off, Retrenchment and Closure — Statutory Notes
Although these are not industrial action in the strike-lockout sense, they are commonly tested alongside.
33.3.1 Lay-off — Section 25C
| Provision | Rule |
|---|---|
| Eligibility | Workman with 1 year or more of continuous service |
| Compensation | 50% of basic wages and DA for each day of lay-off |
| Maximum days | 45 days in a year (after which retrenchment may be considered) |
| Exclusion | Casual workers, badli workers (during the month of lay-off if a substitute is provided) |
33.3.2 Retrenchment — Section 25F
For a worker with at least one year of continuous service, the employer must:
- Give one month’s notice in writing or pay in lieu;
- Pay compensation of 15 days’ average pay for every completed year of continuous service or part thereof in excess of six months;
- Notify the appropriate government in the prescribed manner.
33.3.3 Section 25N — Prior Permission
For establishments employing 100 or more workers (300 or more under the IR Code), prior permission of the appropriate government is required for retrenchment, lay-off and closure. The threshold change in the IR Code is one of its most-discussed provisions — it gives more flexibility to employers in establishments with 100–299 workers.
33.3.4 Closure — Section 25-O
Closure of an establishment with the prescribed threshold of workers requires prior permission from the appropriate government, with at least 90 days’ notice stating the reasons. Workers are entitled to compensation as in retrenchment.
33.4 Essential Services Maintenance Act (ESMA)
The Essential Services Maintenance Act, 1981 (and corresponding state ESMAs) is a separate regime. Where a strike threatens essential services — defined to include water, electricity, public health, defence production, banking, port operations, communication and many more — the central or state government may prohibit the strike for up to six months. Participation in a strike prohibited under ESMA is a criminal offence punishable with imprisonment.
ESMA is the strongest-ever statutory restriction on strikes in India and has been used in railways, banking, postal and government-employee strikes.
33.5 Famous Indian Strikes — Reference Points
| Strike | Year | Significance |
|---|---|---|
| All-India Railway Strike (George Fernandes) | 1974 | 20-day strike paralysed the railways; ended with mass arrests; became a turning point in IR-state relations |
| Bombay Textile Strike (Datta Samant) | 1982–83 | Largest industrial action in Indian history — over 250,000 workers, 18+ months; accelerated mill closures |
| Bank strikes | recurrent | Periodic national strikes by AIBEA and others on wage revisions |
| Bharat Bandh — multi-union national strikes | recurrent | Coordinated strikes by central federations on policy issues |
| Maruti Manesar | 2012 | Violent end to a long dispute; HR manager killed; large-scale dismissals |
| Hyundai Chennai | 2012 | Long dispute over union recognition |
| Tea-garden strikes (Assam, West Bengal) | recurrent | Wage and welfare disputes in plantations |
33.6 Trends and Patterns
The decade-by-decade pattern of strikes and lockouts (chapter 31) shows three trends.
| Trend | Pattern |
|---|---|
| Long-run decline | Number of disputes and man-days lost down by an order of magnitude since the 1980s |
| Lockouts overtook strikes | In man-days lost, employer-initiated lockouts have dominated since the 1990s |
| New forms of action | Bandhs, log-off campaigns by gig workers, online petitions, social-media coordination |
33.7 Practice Questions
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| Type | Description | ||
|---|---|---|---|
| (i) | Wildcat strike | (a) | Workers occupy the premises but do not work |
| (ii) | Sit-down strike | (b) | Strike without prior notice and often without union sanction |
| (iii) | Token strike | (c) | Strike of workers in sympathy with workers in another firm |
| (iv) | Sympathetic strike | (d) | Short, symbolic stoppage to register protest |
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- Strike — §2(q) ID Act, 1947 / IR Code, 2020. Four essentials: cessation, body of persons, combination / common understanding, employed in industry. IR Code adds: 50%+ concerted casual leave on a day = strike.
- Strike types: general, token, sympathetic, wildcat, lightning, sit-down, pen-down, tool-down, slow-down, work-to-rule, hunger, gherao, bandh, mass casual leave.
- Right to strike is statutory, not fundamental (AIBEA 1962; T.K. Rangarajan 2003).
- Notice: public utility — §22 — 6 weeks’ window, 14 days’ wait; all establishments under IR Code §62 — 14 days’ notice.
- §23 prohibitions: during conciliation pendency + 7 days after; during court/tribunal pendency + 2 months after; during arbitration pendency + 2 months after; while settlement / award is in operation.
- §24 — illegal strikes; §26(1) penalty for workers; §27 for instigators; civil immunity (TU Act §18) lost.
- Lockout — §2(l). Mirror-image regulation; §26(2) penalty for employer.
- Lay-off — §2(kkk); compensation under §25C — 50% of basic + DA for up to 45 days/year.
- Retrenchment — §2(oo); §25F — 1 month notice or pay + 15 days’ wages per year of service.
- Closure — §2(cc); §25-O — prior permission and 90 days’ notice for prescribed-size establishments.
- §25N: prior government permission for lay-off / retrenchment / closure — threshold raised from 100 to 300 workers under the IR Code, 2020.
- ESMA, 1981: government may prohibit strikes in essential services.
- Gherao held wrongful confinement — Jay Engineering Works v. State of West Bengal (1968).