Strikes and Lock-outs under the Industrial Relations Code

The strike is the workers' principal weapon in collective bargaining, and the lock-out its counterpart for the employer. Indian law does not ban either, but regulates when they may be used. The Industrial Relations Code makes a significant change: the notice requirements that applied only to public utility services under the 1947 Act now apply to every industrial establishment. This note covers the definitions, the conditions in section 62, illegal strikes and their consequences, and the cases on wages for the strike period.

1. Definitions and Constitutional Position

• Strike, s.2(zk). Cessation of work, or a concerted refusal to work or accept employment, by persons acting in combination or under a common understanding. It now includes concerted casual leave on a given day by 50% or more of the workers.
• Lock-out, s.2(u). Temporary closing of a place of employment, suspension of work, or refusal by the employer to continue to employ any number of persons.
• Not a fundamental right. The right to strike is not part of Article 19(1)(c) (All India Bank Employees, 1962). In B.R. Singh v Union of India (1989) the Court still recognised it as a legitimate weapon of collective bargaining, regulated by statute.

2. Conditions for a Lawful Strike or Lock-out, Section 62

Figure 1: No strike or lock-out in breach of these conditions

• All industrial establishments. The conditions apply to every industrial establishment, not only to public utility services.
• Existing strike. No notice is needed where a strike or lock-out already exists, but the employer must report it to the authority the same day.
• Report of notices, s.62(6). The employer must report notices received or given to the appropriate Government and the conciliation officer within five days.

3. Illegal Strikes and Lock-outs

• Section 63(1). A strike or lock-out is illegal if begun in contravention of s.62, or continued against a prohibition under s.42(7) after a notified arbitration reference.
• Continuing strikes, s.63(2). A strike lawfully begun does not become illegal merely because the dispute is later taken to the Tribunal, an arbitrator or the National Tribunal, unless continuance is prohibited.
• Retaliation, s.63(3). A lock-out declared in consequence of an illegal strike, or a strike in consequence of an illegal lock-out, is not illegal.
• Financial aid, s.64. No person may knowingly spend money in direct furtherance or support of an illegal strike or lock-out.

Figure 2: Penalties under section 86

4. Leading Cases

Figure 3: Strikes in the Supreme Court

5. Frequently Asked Questions

What notice is required for a strike under the IR Code?

Under section 62, workers in any industrial establishment must give notice of strike within sixty days before striking, cannot strike within fourteen days of giving notice or before the date stated in it, and cannot strike during conciliation and seven days after, during Tribunal or notified arbitration proceedings and sixty days after, or while a settlement or award covering the matter is in operation.

Are workers paid for the strike period?

Only if the strike is both legal and justified, as held in Crompton Greaves v Workmen (1978) and by the Constitution Bench in Syndicate Bank v K. Umesh Nayak (1994). An employer may deduct wages for the period of a strike, even a strike of a few hours (Bank of India v T.S. Kelawala, 1990).

What are the consequences of an illegal strike?

A worker who commences, continues or furthers an illegal strike is punishable under section 86 with fine of ₹1,000 to ₹10,000, or imprisonment up to one month, or both. Instigating an illegal strike or financing it carries fine of ₹10,000 to ₹50,000, or imprisonment up to one month, or both. Participation may also be misconduct, but punishment still requires a fair inquiry, as Gujarat Steel Tubes v Mazdoor Sabha (1980) shows.

Is mass casual leave a strike?

Yes. The definition of strike in section 2(zk) of the IR Code expressly includes concerted casual leave on a given day by fifty per cent or more of the workers employed in an industrial establishment, so it must meet the notice and other conditions in section 62.

6. Related Topics

• Topic 2: Constitutional Framework of Labour Law. The right to strike and Article 19(1)(c)
• Topic 14: Dispute Resolution Machinery. Conciliation and adjudication.
• Topic 18: Unfair Labour Practices and Offences. Penalties under the IR Code.