UNIT-IV — Instruments of Economic Coercion

•       4.1  Concept of strike
•       4.2  Gherao
•       4.3  Bandh and Lock-Out
•       4.4  Types of strike
•       4.5  Rights to strike and Lock Out
•       4.6  General Prohibition of strike and Lock-outs
•       4.7  Prohibition of strike and Lock-outs in public utility services
•       4.8  Illegal strike and Lock-Outs
•       4.9  Justification of Strike and Lock-Outs
•       4.10  Penalties for illegal strikes and Lock-Outs
•       4.11  Wages for strike and Lock-Outs
•       4.12  Lay-Off — Definition of lay-off and Retrenchment
•       4.13  Retrenchment — precedent for retrenchment, Procedure for Retrenchment and re-employment of retrenched workmen and penalty
•       4.14  Transfer and Closure
•       4.15  Compensation — Compensation to Workmen in case of transfer of undertaking closure
•       4.16  Closure — prevention and regulation, Conditions
•       4.17  Disciplinary action and domestic enquiry — Management’s prerogative during the pendency of proceedings, Notice of change

 

 

4.1 – 4.4 Concepts of Coercion: Strike, Gherao, Bandh, and Lock-Out

The “Plain English” Intro

Coercion is the act of forcing someone to do something they don’t want to do by using pressure. Workers use Strikes (refusal to work), while employers use Lock-outs (refusal to let workers in).

Day-to-Day Analogy

Think of a Rent Dispute. A Strike is like the tenant refusing to pay rent until the roof is fixed. A Lock-out is like the landlord changing the locks so the tenant can’t get in until they agree to pay more. Gherao is like the tenant physically surrounding the landlord so he can’t leave his office—which is usually illegal!

The Legal Backbone (Table)

Instrument	What it says in Simple Terms	Legal Status
Strike	Collective stoppage of work by employees.	Legal if procedures are followed.
Lock-Out	Temporary closing of a place of employment by the boss.	Legal if procedures are followed.
Gherao	Physical blockade of targets (managers) to prevent movement.	Illegal (Criminal Conspiracy/Wrongful Confinement).
Bandh	A call for a total shutdown of a city or state.	Illegal (Violates Fundamental Rights of others).

The “Checklist” (Types of Strike)

• Stay-in / Pen-down Strike: Workers come to the workplace but refuse to work.
• Go-Slow: Workers work at a deliberately slow pace (not technically a “strike” but an unfair labor practice).
• Sympathetic Strike: Striking to support workers in another industry (usually illegal).
• Hunger Strike: Fasting to exert moral pressure.

4.5 – 4.11 Legalities, Prohibitions, and Wages

The “Plain English” Intro

There is no fundamental right to strike in India, only a statutory right (a right given by a specific law). If you strike illegally, you lose your wages and face penalties.

The “Checklist” (Illegal Strikes – Sec. 22, 23, & 24)

A strike/lock-out is Illegal if:

• It is in a Public Utility Service (Water, Electricity, Health) without 14 days’ notice.
• It is started within 6 weeks of giving notice.
• It is started while proceedings are pending before a Conciliation Officer or Tribunal.

Comparison Table: Justified vs. Illegal Strike

Feature	Justified Strike	Illegal Strike
Procedure	Proper notice was given.	No notice or during pendency.
Cause	Reasonable (e.g., non-payment of wages).	Unreasonable or political.
Wages	Workers may be entitled to wages.	No work, No pay (strictly applied).

4.12 – 4.16 Retrenchment, Transfer, and Closure

The “Plain English” Intro

When a business shrinks or closes, the law ensures workers aren’t just thrown onto the street without a “soft landing” in the form of compensation.

The Legal Backbone (The Compensation Formula)

Event	Requirement	Compensation (Sec. 25F)
Retrenchment	1 year of continuous service.	15 days’ average pay for every year of service.
Transfer	Business ownership changes.	Same as retrenchment (unless the new owner keeps them).
Closure	Business shuts down permanently.	Same as retrenchment (capped at 3 months if closure is due to unavoidable circumstances).

The “Checklist” (Procedure for Retrenchment)

1. Notice: 1 month notice in writing (or pay in lieu of notice).
2. Compensation: Paid at the time of retrenchment.
3. Last-Come-First-Go: The most junior person in the category must be fired first.
4. Re-employment: If the company hires again, retrenched workers get first priority.

4.17 Disciplinary Action and Domestic Enquiry

The “Plain English” Intro

Management has the “prerogative” (right) to discipline workers, but they must follow Natural Justice. You can’t fire someone without a “Domestic Enquiry” (an internal trial).

The “Checklist” (Steps of a Domestic Enquiry)

• Charge-sheet: Tell the worker exactly what they did wrong.
• Explanation: Give them a chance to reply.
• Evidence: Present witnesses and let the worker cross-examine them.
• Impartiality: The person conducting the inquiry must not be biased.

Exam “Golden Key”

“A strike is a weapon of last resort; its legality depends on the ‘procedure’ and its justification depends on the ’cause’.”

Use this to distinguish between Section 24 (Legality) and the moral/economic reasons (Justification).