Difference between "Lock-Out" and "Closure" under the Industrial Dispute Act 1947

There is sometimes get confusion between the two terms viz. "Lock-Out" and "Closure". Hence in this blog topic we will try to explain what is meaning of "Lock-Out" and "Closure".

Lock-Out means the temporary closing of a place of employer, whereas Closure means the permanent closing down of a place of employment.

In the case of Lock-Out, the employer closes the place of business, whereas in the case of Closure the employer closes the business itself.

Further, in the case of Lock-Out there is suspension of work, whereas in the case of a Closure there is discontinuation of the business.

Now, after explaining what is meaning of “Lock-Out" and "Closure", there is one more question usually comes in mind of individuals "if the employer shift the manufacture of one of its products from one place to another, does it amount to closure? To answer this we can take reference one of the decided case of Bombay High Court that shifting the manufacture of one of several products from one unit to another does not amount to closure of part of a place of employment.

Hope this small write up will give insight about pertained subject.

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