Labour Codes: #19 Strikes and Lock Outs: A Comparison of the Old and New Provisions
A. Introduction: –
Chapter V and Chapter VI of the Industrial Disputes Act, 1947 (“ID Act”) provide a legal framework for the investigation and settlement of disputes between employers and employees, and deal with the provisions of Strikes and Lockouts. The Industrial Relations Code, 2020 (“IR Code”) represents a significant transformation in India’s labor law framework, consolidating three major labor legislations. Chapter VIII of the IR Code deals with the provisions of Strikes and Lockouts.
B. Comparative Analysis of Key Provisions of the ID Act and IR Code:
|
Enactment |
ID Act |
|
|
Definition of Strike |
Cessation of work, concerted refusal, or refusal under a common understanding by employees to continue working. |
IR Code expands this definition and includes mass casual leave by fifty percent or more workers on a given day. |
|
Scope of Application |
Provides for distinction between public utility services and other establishments |
The IR Code removes any distinction and provides uniform application to all industrial establishments. |
|
Coverage of Employees |
Applied to “workmen” as defined in the Act, excluding managerial and supervisory staff earning above Rs. 10,000 per month. |
Expanded to cover “workers” including those in supervisory roles (However excluded managerial and administrative staff) earning up to Rs. 18,000 per month. |
|
Apprentices |
Included apprentice under the definition of workmen |
Apprentices are excluded from the definition of workman. |
|
Notice for strike |
Requirement of notice of 6 weeks (45 days) for striking |
Requirement of notice of 60 days for striking |
|
Illegal Strike |
Imprisonment up to 1 month, or fine up to Rs. 50, or both. |
Fine between Rs. 1,000 and Rs. 10,000, or imprisonment up to 1 month, or both. |
|
Illegal Lockout |
Imprisonment up to 1 month, or fine up to Rs. 1,000, or both. |
Fine between Rs. 50,000 and Rs. 1,00,000, or imprisonment up to 1 month, or both. |
|
Instigating Illegal Strike/Lockout |
Imprisonment up to 6 months, or fine up to Rs. 1,000, or both. |
For lockouts: Fine between Rs. 10,000 and Rs. 50,000, or imprisonment up to 1 month, or both. |
C. Key Impact on Employer:
a. Extended Notice Period: Given that the notice period has been extended from 6 weeks (42 days) to 60 days, employers must account for longer timelines in workforce planning, potentially delaying restructuring and increasing costs, requiring stronger compliance management.
b. Higher Penalties: Non-compliance now attracts significantly higher fines, raising financial and reputational risks. Employers must strengthen audits, compliance systems, and legal oversight.
c. Trade Union Recognition: Formalized recognition of union (≥51% membership) or formation of a negotiating council, may lead to structured bargaining and stricter negotiations, demanding enhanced HR/IR capabilities.